How industrial finance serves the optimization and upgrading of the industry

Author: Yu Huajun

The high-quality development of the manufacturing industry is the top priority of the high-quality development of China's economy, and the construction of a socialist modern power and the development and expansion of the real economy are inseparable from the manufacturing industry, and it is necessary to continue to make efforts in promoting industrial optimization and upgrading. To open a new journey of the "14th Five-Year Plan", industrial finance, as an important economic field with the closest integration of industry and finance, how to adapt to the needs of industrial optimization and upgrading has become an important part of improving the adaptability of the real economy of financial services.

In the field of industrial finance, industry is the foundation and fundamental, finance plays a role as a catalyst, lubricant and multiplier, in the virtuous circle mode, the two penetrate each other, support each other, promote each other, and constantly create new value, to achieve the "1 + 1>2" effect, to drive the rapid development and growth of industrial scale, to make positive contributions to economic development. Industrial finance is an inevitable product of the development of the industrial economy to a certain stage, and it is the only way to move towards a higher level. From different perspectives, industrial finance has different connotations: from the perspective of returning to the source and serving the real economy, in the context of industrial development policies, with a series of financial business activities to promote the development of specific industries, comprehensively improve service efficiency and level, and allocate more financial resources to key areas and weak links of economic and social development, which can better meet the diversified financial needs of the people and the real economy; from the perspective of risk prevention, industrial finance is not only the coupling of industrial capital and financial capital. There are also the inherent requirements of the coordinated and orderly healthy development of the two, the industry is the cornerstone of financial development, serving the real economy is the natural duty and purpose of finance, firmly grasp this fundamental principle, to avoid financial derealization to virtual, is to prevent and resolve financial risks.

The supply-side structural reform has been deepened, the high-quality economic development has forced the transformation and upgrading of the economic structure, the importance of the security of the industrial chain supply chain has become increasingly prominent, and the development of industrial finance has ushered in a huge opportunity and is also facing major challenges. Only when the financial architecture and the industrial economic structure are highly matched, deeply integrated and benignly interacted, can we maximize the strong support role of finance for high-quality economic development and people's happy life. At present, the rising momentum of Systemic Financial Risks in China has been effectively curbed, and the total assets of high-risk banks currently account for only 1.4% of the total assets of the banking industry, and the financial derealization to virtual and blind expansion has been fundamentally reversed. The hidden dangers of local government debt risks have not been eliminated, some industries are at the bottom of the cycle, the risk of debt default of individual enterprises has increased, and the uncertainty of the international financial market has increased. In this regard, industrial finance needs to base itself on the present, focus on the long term, adhere to the new development concept, clarify the goals of high-quality development, grasp the requirements of supply-side structural reform and the construction of a new development pattern, grasp the main aspects of the main contradictions and contradictions, make up for the shortcomings, strengthen the weak points, establish rules, draw a clear bottom line, promote the resolution of outstanding contradictions and problems, accelerate the creation of an upgraded version of industrial finance, and enhance the service capacity and promotion role of finance to the real economy.

With the deepening of the reform of China's financial system, optimizing the top-level design of the regulatory framework and strengthening the cross-departmental, cross-regional and cross-field regulatory coordination are of far-reaching significance for improving regulatory capabilities and levels. At present, industrial finance presents a scientific and technological, capitalized, vertical, ecological development trend, in response to change, promote innovation, improve efficiency and achieve win-win results at the same time, the corresponding risk accumulation degree and transmission speed gradually enlarged, risk dissemination mechanism is more complex, put forward new requirements for the timeliness, effectiveness, comprehensiveness and professionalism of financial supervision. To optimize the top-level design of the regulatory framework, we need to focus on the professionalism of the industrial field, the complexity of scientific and technological progress, the difference in risk management, and the unity of cross-border risk and compliance. Scientifically grasp the form and essential law of industrial finance, promote financial supervision to keep pace with the times, not only to avoid stifling the needs of industrial financial development due to the simple and blunt means of governance, but also to change the concept and methods of governance, explore the establishment of risk early warning and cross-departmental collaborative disposal mechanism, timely and accurately identify and judge the disposal of risks, realize the risk control of the whole chain before and after the event, and continuously improve the efficiency of supervision.

The development of industrial finance has gone through three stages, from the traditional financial service model directly facing single-point customers to the industrial chain financial model along the upstream and downstream layout of the industry, and in recent years, it has gradually formed an industry-finance ecosystem model with the industry as the core and the platform as the expansion mode. Capitalization is an important trend in industrial finance, and the continuous agglomeration of capital has spawned market players such as financial holding companies, financial platforms and financial centers. The development of such financial holding companies has its inevitability and innovation, and its supervision, especially the penetrating supervision of capital and risk, should be placed in a more prominent position. The development trend of industrial finance spreads throughout all kinds of industries, and some institutions with strong strength and standardized operation have optimized the allocation of resources, reduced the cost of funds, enriched and improved financial services through the financial holding platform model, which is conducive to meeting the needs of consumers and the industrial chain, and enhancing the ability of financial services to the real economy. However, in practice, there are also a small number of enterprises blindly expanding into the financial industry, internal governance failures, market behavior is out of norms or even violations of laws and regulations, debt leverage is high, isolation mechanism is missing, and funds are idling away from the real economy, resulting in chaos in the financial industry and social and economic instability. Therefore, it is necessary to further improve the rules and regulations for the supervision of financial holding platforms, fill in the gaps and loopholes in the rules, implement access management and continuous supervision to the letter, and improve the efficiency of system implementation, which is conducive to preventing cross-contagion of risks and promoting a virtuous cycle of economy and finance.

A virtuous circle of social and economic form, can not be separated from the corresponding industrial financial ecology, industrial finance by better empowering the real industry, in order to truly reflect its existence value. Therefore, optimizing the development ecology of industrial finance requires the joint efforts of enterprises and regulators, and regards empowering the industry to improve quality and efficiency and promote the improvement of people's lives as the first priority. In the face of the continuous development and changes of the market environment and regulatory requirements, industrial finance-related enterprises should base themselves on the main business, find their own positioning, focus on the target customer base, and innovate business models to build their own unique industrial financial service advantages. It is necessary to pay more attention to the role of finance in promoting industrial development, pay more attention to the stability, compliance, effectiveness and safety of the source and use of funds, and continuously strengthen the construction and control of equity structure, corporate governance, related party transactions, risk management system and other aspects. Focusing on the long term, in the face of the new economic form, the wave of digitalization and the diversity and changeability of customer needs, industrial financial enterprises need to constantly think about their positioning and operation management mode in the new industrial ecology, formulate a more thorough transformation and upgrading strategy, seize new opportunities, meet new challenges, and better empower industries to improve quality and efficiency and improve people's livelihood. (Yu Huajun)

Source: Learning Times