With the purpose to further support foreign-funded enterprises in finance under COVID-19 predicament, Ministry of Commerce and Banking and Insurance Regulation Commission published this new notification to improve the finance environment, lower the cost for financing and help foreign-funded enterprises to solve financing difficulties. Shanghai Dongjin finds the highlighted context as below:
Under the consistency of domestic and foreign funds, the special support for re-loan and rediscount RMB 1.5 trillion Yuan shall be equally applied for foreign-funded enterprises. Banking financial institutions shall positively ensure fair financing needs of key foreign-funded enterprises based on market-oriented principle. The added loan RMB 57 billion Yuan from The Export-import Bank could be used to support those compliant key foreign-funded enterprises in various and full financial supports like creatively enrich more kinds of financial products and rationally allocate credit resources.
The so-called “key foreign-funded enterprises” above include, but not limited to, 1) manufacturing foreign-funded enterprises in key links as special and general-purpose equipment, electronic and communication equipment, medical equipment, chemical, automotive and pharmaceutical; 2) electronic component, textile and clothing manufacturing; 3) foreign-funded enterprises which are under certain operating difficulties in the fields of business and trade services as wholesale, business service, software, information technology service, catering, accommodation, tourism and pension.
For the financial needs and problems of key foreign-funded enterprises, they shall be collected, replied and solved in time by provincial Commission of Commerce.
If you want to read the complete article, you can refer to the below link (in Chinese only):
If you have any question, please contact me.
Mr. Mike Chang (Partner)