From January 2nd to 3rd, the National Development and Reform Commission held a conference on promoting high-quality development of the private economy with the “Jinjiang Experience” in Jinjiang City, Fujian Province. Senior officials in charge of central and national ministries, officials in charge of development and reform commissions of various provinces (regions, cities), leaders of some local governments, state-owned enterprises, and financial institutions, as well as representatives of national private enterprises, gathered together to discuss the development of the private economy. Lv Jiajin, Secretary of the Party Committee and Chairman of Industrial Bank, was invited to attend the conference and deliver a speech.
During the meeting, Industrial Bank’s branches in Hangzhou, Hefei, Chengdu, Wuhan, and Quanzhou respectively signed agreements with five private enterprises including TSINGSHAN Holding Group, SeeYa Technology Corporation, Olymvax Biopharmaceuticals Inc., JOINTOWN PHARMACEUTICAL GROUP, and Fujian Billion Holdings, to support the high-quality development of private enterprises.
“As a bank rooted in the major province of private economy, Fujian, we always regard serving the private economy as a significant task and a great opportunity,” Lv Jiajin expressed. In recent years, Industrial Bank has always adhered to the “two unshakable” principles, actively inherited and carried forward the “Jinjiang Experience,” closely integrating serving the private economy with promoting strategic transformation, and making efforts to form distinctive service characteristics of Industrial Bank.
Firstly, the bank has deepened its commitment to green finance, facilitating the green and low-carbon transformation of the private economy. Industrial Bank fully leverages its advantage as a leader in green finance, vigorously supports the transformation and upgrading of traditional industries and the growth of green emerging industries, especially regarding new energy and new energy vehicles as two important new tracks. As of the end of 2023, there are a total of 1,623 privately-owned enterprises in the new energy sector, with a total financing amount of 126.8 billion yuan. There are also 168 privately-owned enterprises in the new energy vehicle industry, with a total financing amount of 47.8 billion yuan.
Secondly, Industrial Bank has leveraged its investment banking strengths to open up direct financing channels for the private economy. Industrial Bank has consistently ranked among the top in the industry in terms of the scale of underwriting non-financial corporate debt financing instruments. It has maintained a good development trend in various businesses such as mergers and acquisitions, syndicated loans, private debt placement, capital markets, and asset turnover. Throughout this process, Industrial Bank has always prioritized serving private enterprises, actively providing comprehensive financial services and assisting numerous private enterprises in expanding their financing channels, reducing financing costs, and conducting industrial integration.
Thirdly, Industrial Bank is exploring digital finance to enhance the financial service quality and effectiveness for the private economy. Industrial Bank actively seizes the trend of digital China and digital Fujian, and vigorously promotes digital transformation. To support the development of technology companies, Industrial Bank has innovatively launched the “Tech-Flow” evaluation system. It has currently provided financing services of nearly 600 billion yuan, of which the proportion of private enterprises accounts for 88%. In terms of service platforms, it has constructed and operated the Fujian Province Financial Service Cloud Platform, which has access to over 4,400 categories of enterprise-related data, including taxation, industry and commerce, electricity, environmental credit evaluation, and more. This data is then transformed into credit, and credit is transformed into loans. It has solved financing needs for more than 82,600 operating entities, amounting to over 315.5 billion yuan. Industrial Bank has provided financing of 79.7 billion yuan, with private enterprises accounting for over 70% of the financing.
Since last year, the Party Central Committee and the State Council have released the Guideline on Boosting the Growth of the Private Economy. The Fujian Provincial Party Committee and Fujian Provincial Government have introduced the Guideline on Implementing the Strategy of Building a Strong Province with Private Economy in the New Era to Advance High-quality Development. They have set clear requirements for innovating and promoting the “Jinjiang Experience,” thereby injecting strong momentum into the high-quality development of the private economy. Industrial Bank earnestly implements the decisions and deployments of the Party Central Committee and the State Council, as well as the work requirements of the Fujian Provincial Party Committee and the Provincial Government. It promptly formulated action plans to support the development and growth of the private economy and to serve the strategic actions for Fujian to become an economically strong province in the new era, proposing 28 and 26 specific measures respectively.
“Industrial Bank will tightly integrate the spirits of the Central Economic Work Conference and the Central Financial Work Conference and turn the solemn commitment to serving the private economy into concrete actions. We will further improve long-term mechanisms, increase resource input, optimize work processes, and innovate service methods. We will focus on five major areas: techfin, green finance, inclusive finance, pension finance, and digital finance. We will provide higher-quality financial services for the technological transformation, green development, and digital transformation of private enterprises, and steadfastly support the private economy in becoming bigger, better, and stronger,” said Lv Jiajin.
The data shows that as of the end of 2023, the balance of private enterprise loans in Industrial Bank has reached 1.3 trillion yuan, with an increase of 470 billion yuan in the past three years, an increase of over 50%. The number of private enterprise loan accounts exceeds 50,000, with an increase of 20,000 in the past three years, an increase of over 70%. In Fujian Province, the balance of loans to private enterprises by Industrial Bank exceeds 150 billion yuan. The coverage rate of cooperation with the top 100 private enterprises in Fujian Province reaches 98%. Industrial Bank has been awarded the “Outstanding Contribution Bank for Serving Private Enterprises and Small and Medium-sized Micro Enterprises in Fujian Province” for four consecutive years.