10 key points for interpreting financial information are published in government reports

The 4th session of the 13th National People's Congress opened at the Great Hall of the People, and President Li Keqiang announced the government's statement (hereinafter referred to as the “Report”). The financial information in the report also allows us to examine financial policy developments for 2021.

01

Progress in registration update the system regularly

Keywords: Progress of registration changes

Key Statement: Continue to support the registry review and improve the existing deletion process.

Jingguan said: In this announcement, the record deletion and review process at the same time said that it was different from last year. Last year, the report mainly focused on "China's upcoming reform and trial registration operation." GEM started the listing process in August last year, and in February this year, the China Securities Regulatory Commission approved the merger of the Shenzhen Stock Exchange's motherboard with the board of directors of small and medium enterprises. One way to take care of the whole gamut of late registrations. This year, registration revisions will be carried out regularly throughout the market after examination on the basis of existing tests.

Registration increased the share of proceeds in joint venture A, while monitoring indicates the completion of removal procedures to enable the health of the entire industry to invest. The A-share market is “in-and-out” and eliminates lower prices than emerging markets in Europe and the United States. At the end of last year, the Shanghai Stock Exchange and the Shenzhen Stock Exchange also announced new delisting rules. Customs clearance of "Shell Company", etc. This year we will see underperforming companies that do not meet the list will have to withdraw from the market. Chinese safety regulations also support reforms aimed at promoting consumer protection, such as reorganizing prescriptions to guarantee "pensions" and "pensions."

02 ib

Improve business development

Tags: Improve the construction of commercial contracts

Key report: Continuously support the transformation of registration, standardize the delisting system, strengthen the construction of business contract, improve the role of multi-level investment, and expand investor investment.

Jingguan said: In the past two years, credit crises have occurred repeatedly in the contract industry, with some companies illegally posting incorrect information, fraud, or poor "debt protection." Therefore, it is necessary to establish a legal framework in the financial sector.

At the same time, we will continue to develop a set of financial markets, such as the development of an industry-oriented and legalized contract default resolution mechanism, and to implement financial reforms. Commercial infrastructure, communications and management partnerships also need to be improved. Strengthening himself, in order to create a healthy and mature business, he has to do his job directly financially to support the real business.

03

Expansion of export credit insurance

Keywords: Widening the scope of export credit insurance

First report: Promote openness to the outside world and promote stability and sustainable development of foreign trade and investments. To open up to the outside world in a wider and deeper way, and to participate in international trade.

Support the stable development of import and export. Improve credit support for SMEs, expand export insurance coverage, improve registration and enforcement of contracts, and step up efforts to support foreign exchange and payments in businesses.

Jingguan said: Export credit insurance is a type of credit insurance that insures exporters due to the risk of the exporter or the risk of overseas. According to Song Shuguang, chairman of China Export & Credit Insurance Corporation, in the face of external risk, strict regulations have been implemented, and in 2020 CITIC Insurance's tariffs put an end to total collection costs of over 700 billion dollars. dollars, an increase of 15%. the price. %, declared growth. quick. Of this amount, export support exceeded $ 580 billion, representing 22% of total exports. By 2020, 147,000 new clients have been taken on, of which 40,000 new clients have been added, an increase of 58%, and around 15 million export jobs. was guaranteed. Yes

There is scope for expanding the investment potential of export insurance so that it can track and integrate with key national standards and measures to support the growth of foreign trade. help protect real and foreign trade.

04 ib

Improve oversight of financial services and financial technology companies

Key Points: Improve Financial Management Companies and Technology Management

Key statement: Improve the supervision of financial institutions and financial technology companies to ensure that financial exchanges are conducted in the area of ​​good governance.

Jingguan said: After the establishment of the financial services company began in 2018, the policy-level procedure for financial institutions to support the supervision of financial institutions will be released on September 13, 2020. Federal Information System on national financial institutions (National Law [2020] n ° 12) and preliminary measures of supervision and control. Financial Institutions Review (People's Financial Institutions of Korea [2020] No. 4) China) was announced on November 1, 2020. It has been announced to date and completed.

Currently, the supervision of financial institutions is still under review and the central bank needs to develop more detailed rules and regulations for financial institutions, management of data collection, reporting and other management matters. .

On March 2, Guo Shuqing, director of Financial Services and Insurance Regulatory Authority, spoke about financial supervision, “We also try to ensure that all types of financial services are provided in accordance with rules, regulations, rules and regulations. "Create a fair and equitable business environment, build confidence, protect The conflict escalated and ensured that monetary exchanges were carefully monitored." "

2020 is called the "first year of fintech supervision" in the industry, and in the process of integrating fintech and fintech, new industries and technologies have emerged, and new security risks have arisen . The management model cannot satisfy the manager, as the need arises, the financial management process has been constantly explored, for example, the new model "sandbox manager" needs 'be obtained at the time it occurred.

05 ib

Improve financial risk management procedures

Keywords: Perfect mechanism for financial risk management

Key report: Improve financial risk management processes, consolidate the responsibilities of all third parties and maintain strong resilience to avoid risks.

Jingguan said: This report aims to improve the financial risk management process, integrate the responsibilities of all parties and adhere to the principle of risk prevention, highlight priorities and focus on financial risks, and improve system performance. . that We will continue to improve the prevention and treatment of finance.

For example, on February 26, the Financial Institutions and Insurance Regulatory Authority of China announced interim measures (request for comment) to use the bank. We plan and respond to emergencies in advance. Therefore, improving the turnaround and resolution plan strengthens the company's financial awareness of crisis and problem-solving capabilities, fulfilling the key roles and responsibilities of the entrepreneur, and includes a good management strategy while throughout its business process to "prevent problems". “A return / elimination plan will help prepare upstream response and assessment measures for a major risk, anticipating and resolving potential problems, and taking into account financial oversight responsibilities. Maintain area accountability and the financial security of the police and local government to ensure swift and full implementation.

06

Progress of the long-term insurance pilot project

Key points: Stable promotion of the long-term insurance pilot project

Key Factor: To strengthen the health of indigenous peoples: Improve the old age pension, retirement pension and living expenses. Support the national plan for free access to be completed and model the development of free third-party services. Improve the national public service platform for public health insurance. Strengthen special medical care for Veterans, Veterans and other beneficiaries, and improve the functioning and safety of Veterans. Further expansion of unemployment insurance. Facilitate the integration of care, care and health care, and support the management of health insurance over the long term. It is easier to improve a variety of services such as community adult care, child care, nutrition and care, strengthening support facilities, policy enforcement and improving life in the community. the community.

Jingguan said, “Long-term care insurance is a type of health insurance that provides health protection for people with major disabilities due to age. old age, sickness, disability, etc. Long-term insurance has been tested in 49 cities across the country. , and the total discount is around 70%.

In June 2016, the Ministry of Human Resources and Social Security announced the “Guidelines for working with long-term health insurance” and implemented a long-term insurance plan in 15 cities across the country. . After several years of development, the whole development has gone well, but there are still issues such as overspending, difficulties in integrating aging models, sufficiency pressure on the insurance industry and slowdowns.

Therefore, it is necessary to evolve in accordance with the standards of integration and accompanying policy following the expansion of the experimental operation of long-term insurance.

07 ib

investment

Key points: More money is invested in technology development, green development, small businesses, self-employment and enterprises, and more.

First report: Banks are expanding lending, expanding lending for the first time, and increasing lending as needed, allowing more money to be invested in construction innovation, green growth, and small and micro -industry, self-employment. And family businesses, the new agricultural industry and businesses in the sector affected by the spread continue to provide support campaigns.

Jingguan said: The government's 2020 government report wrote that "to encourage banks to lend and lend and lend, and increase small business loans, upfront loans, free loan repayment." Agenda 2021 also emphasizes financial support, the main tasks of the strand are "technological development" and "green development", and the main objectives are the expansion of "SMEs" to "SMEs, industry and trade". households and new agricultural businesses. The report notes that service plans will be provided to companies in sectors that are most affected by the spread.

The first report was sent to the "ready-on-demand service". According to insiders, "refund" is a system in which a business can withdraw money at any time up to a certain limit and refund whenever there is money owed. Easy and convenient credit for small and medium businesses, reducing the cost of financing for small and medium businesses.

08

Large businesses, including small businesses and small business lenders

Key points: Large companies, including SMEs and small businesses, grew by more than 30%

Key Note: Including small business loans and small business loans from large companies, it has increased by over 30%. An innovation of the financial services product model. There is a need to reduce operating costs for small and medium enterprises. It optimizes deposit rate monitoring, makes it easier to reduce home loans, and further guides financial processes to turn returns into real investments.

Jingguan said: The 2020 government activity report said that "with the growth of large business loans for small and medium enterprises is expected to be more than 40%. Finally by 2020, the country's small businesses, including loans, amounted to 15,300 rates of more than 30%, of the five banks increased by 54.8%. In other words, the 2020 government report target rate has been met.

China Post and Savings Bank analyst Lou Feipeng believes that large companies are key players in overall financial development, including growth, due to the impact of last year's spread of small and medium-sized enterprises and other large services. The group is facing more financial crisis and needs international financial help. Banks need to provide more support and set higher targets. The gradual management of the spread and the stable and strong economic recovery have improved the profits of small and medium-sized enterprises and other organizations and reduced the stress of the capital. Strong business support is still needed, but the pace is not the same as last year, and this makes the decision to adjust the target according to the actual situation. .

09 ib

Small business makes it easier to spend money

Tags: Easier Small Business Finances

Key Statement: This year should make small business finances easier and more stable and lower overall costs.

Jingguan said: The government's 2020 activity report stated, “In order to protect market players, we need to improve lending to small and medium enterprises and small businesses and reduce overall financial costs.

In 2021, banks will pay more for easy financing of SMEs. Currently, five major banks have created specialized financial institutions. In 2021, banks will use all available technology and information to improve the availability and convenience of financial services. As a result, many industry players believe that the bank's total investment in information technology will continue to grow by 2021. At the same time, spending by financial institutions has fallen from "very low" to "Stabilized with a slight decrease".

dix

Increase investments in small and medium-sized banks in various ways

Keywords: Multi-channel replenishment investment for small and medium-sized banks

Key statement: Continue to increase the capital of small and medium-sized banks in various ways, strengthen corporate governance, strengthen banking regulatory compliance, and improve insurance coverage and service operations.

Jingguan said: The small and medium-sized bank recovery bottle has also been the focus of the development of small and medium-sized banks in recent years. When the Financial Institutions Insurance Corporation recognizes its key role in 2021, it will “encourage small and medium-sized banks to recapitalize in several ways, continued Encouraging the public to invest in local governments to reinvest and support big banks. Export Risk Manage equipment and technology for small and medium sized banks. ".

On July 1, 2020, the State Assembly decided to set up a new municipal government with a special budget descending from a certain amount of money, so that the municipal government could find a way to build the capital of small and medium-sized enterprises. banks. Contract. .

Following the enactment of the above legislation, several states have announced interdisciplinary agreements, offering alternative means for small and medium-sized banks to recapitalize their capital.

In addition to the investment in the swap agreement, the central bank developed and improved the procedures related to the swap agreement with the China Bank Insurance Supervisory and Management Committee in January this year and supports SMEs. The investment is further strengthened by the exchange of contracts. Swaps can be turned into fair contracts, giving investors once again to become a member of the bank.

However, as some states and cities are having difficulty raising funds for the special fund, as stated in the government statement, we hope that further steps will be taken to address the issue of insufficient capital of small and medium-sized banks.