Industrial Bank and Fujian Federation of Industry & Commerce Host Event to “Elevate Financial Service Quality and Empower Private Economy in the New Era”

On April 7, Industrial Bank co-hosted an event with the Fujian Federation of Industry & Commerce in Fuzhou, titled “Elevating Financial Service Quality to Empower the Private Economy Strategy in the New Era.” The event was attended by Wang Guangyuan, Vice Chairman of the Fujian Chinese People’s Political Consultative Conference and Chairman of the Provincial Federation of Industry and Commerce; Chen Xi, Deputy Minister of the United Front Work Department of the Provincial Party Committee and Party Group Secretary of the Provincial Federation of Industry and Commerce; Yu Jian, Party Group Member and Vice Chairman of the Provincial Federation; along with Lv Jiajin, Party Secretary and Chairman of Industrial Bank, and Zhang Min, Committee Member and Vice President of the Bank. Presidents of Fujian Chambers of Commerce from Beijing, Guangdong, Jiangsu, Hunan, Hebei, and Ningxia, along with leaders from Municipal Federations of Industry and Commerce across Fujian, representatives of private entrepreneurs within Fujian, and heads of various Industrial Bank branches also participated.

The private economy is a vital force driving China’s modernization and a fundamental basis for high-quality development. Fujian, a major province for private enterprise, has been enriched by the “Jinjiang Experience” systematized and refined by General Secretary Xi Jinping during his tenure in the region, leaving a legacy of valuable intellectual and practical achievements. Last year, Fujian was the first province nationally to implement a strategy aimed at strengthening the private economy in the new era. Ten years ago, General Secretary Xi Jinping responded to a letter from Fujian entrepreneurs, expressing his high expectations. On March 24 of this year, Fujian commemorated the 40th anniversary of “deregulation” and empowerment with a provincial entrepreneurs’ conference, further inspiring the spirit of entrepreneurs throughout the province.

On April 7, Wang Guangyuan praised Industrial Bank for its pivotal role in directing financial resources towards the private economy, actively facilitating reductions in financing costs, and enhancing the accessibility and availability of financing for private enterprises. He emphasized the importance of deepening information exchange between Industrial Bank and private enterprises, further improving the long-term “Finance + Chamber of Commerce + Enterprise” linkage mechanism. This would effectively broaden the depth and breadth of bank-enterprise cooperation, fully leveraging the vital role of the Chamber of Commerce platform. It is crucial to continuously strengthen exclusive collaboration mechanisms for Fujian merchants and enterprises, such as service systems, credit policies, product services, and supporting resources, injecting robust momentum into the high-quality development of Fujian businesses nationwide. Private enterprises should enhance their corporate governance structures, standardize financial management, and strengthen their awareness of credit and risk to reduce financing costs caused by informational asymmetries and uphold the responsibilities of trustworthy businesses. All levels of the Federation of Industry and Commerce and Chamber of Commerce organizations should take proactive steps, innovate activities, regularly carry out government-bank-enterprise interfacing events, promote the construction of creditworthy, law-abiding, and integrity-based private enterprises, collectively prevent and resolve financial risks, and build a lending ecosystem characterized by readiness, willingness, and capability to lend.

Lv Jiajin remarked that this year marks the 10th anniversary of General Secretary Xi Jinping personally outlining the grand blueprint for a new Fujian. Rooted in Fujian, Industrial Bank has witnessed and benefited from the development of Fujian’s private economy and has consistently prioritized servicing this sector as a crucial task and opportunity. Advancing on this new journey, Industrial Bank will fully leverage its financial role, continuously increase the total financing provided, persistently optimize its business structure, actively pursue financial innovation, and constantly improve the quality and effectiveness of its services to the private economy. By integrating deeply and complementing the strengths of private enterprises, the Bank will continue to drive the integration of industry and finance, serving the strategy to strengthen both the private economy and financial sectors of Fujian. Industrial Bank will continue to support the Fujian Federation of Industry & Commerce and various local Chambers of Commerce, aiming to transform its research entities like the Fintech Research Institute, Carbon Finance Research Institute, and Southeast Asia Research Institute into “think tanks” for the Federation. Moreover, its over 2000 domestic and international branches will act as “liaison points” for local Chambers of Commerce, working hand in hand with Fujian entrepreneurs to jointly pursue development and make greater contributions to the construction of a new Fujian.

At the event, Fujian Chambers of Commerce from Beijing, Guangdong, Jiangsu, Hunan, Hebei, and Ningxia, along with Industrial Bank’s local branches, signed strategic cooperation agreements. Notably, 14 renowned private enterprises from the province, including Yongrong Holdings, Der Technology, and Yuntian Semiconductor, also signed strategic agreements with Industrial Bank’s branches within Fujian, injecting new financial vitality into the high-quality development of Fujian’s private economy.

Industrial Bank, deeply rooted in Fujian and extending its reach nationally and internationally, steadfastly upholds its commitment to the “two unshakable,” carries forward the “Jinjiang Experience,” and grows alongside the private economy. Last year, the Bank introduced initiatives such as the Action Plan to Support the Development and Expansion of the Private Economy and the Action Plan for Serving the Strategy of Strengthening the Private Economy in the New Era, positioning itself as a main financial service force for the private economy. Currently, Industrial Bank serves 300,000 private economy customers, with a loan balance exceeding RMB 1.6 trillion. During the “Fourteenth Five-Year Plan” period, the average lending rate for the private economy has decreased by 92 BP.

In 2021, Industrial Bank initiated strategic cooperation with the Fujian Federation of Industry & Commerce, providing over RMB 600 billion in loans to private enterprises in Fujian since the signing. The current loan balance is nearly RMB 300 billion. For four consecutive years, the Bank has been recognized as an “Outstanding Contribution Bank for Serving Private, Small, and Medium Enterprises” and has been rated as a “Five-Star Bank for Serving Fujian’s Economy” for two consecutive years. While increasing the total volume of financial services, Industrial Bank continues to focus on customer relations, adjust structures, and enhance services. During the “Fourteenth Five-Year Plan,” private loan customers in the nine branches in the province increased by 34%, reaching 76,000, with a 99% coverage rate of Fujian’s top 100 private enterprises. Non-credit financing balances in these branches reached RMB 83.9 billion, with an increase of over RMB 30 billion during the period. The proportion of private economy loans in corporate lending increased from 52.75% to 57.25%, and the share of medium and long-term loans in the private economy rose from 29% to 43%. The proportion of private credit loans increased from 7.8% to 9.7%, and last year, the new private economy loan rate across the nine branches was 3.53%, a reduction of 100 BP during the period.

As the sole national joint-stock commercial bank headquartered in Fujian, Industrial Bank has always remembered its roots and focused on the grand blueprint for a new Fujian and the “four greater” strategic requirements. The Bank has strengthened integrated provincial operations, continuously increased and optimized its financial offerings, and taken the strategy of strengthening the private economy in the new era as a key initiative, helping to compose Fujian’s chapter of Chinese-style modernization. By the end of 2023, Industrial Bank’s loan and deposit balances in Fujian both exceeded RMB 1.5 trillion, with credit and non-credit financing balances surpassing RMB 2 trillion, ranking first among all provincial peers. The Bank has paid over RMB 190 billion in taxes within the province; serving 220,000 corporate customers and 13.62 million individual customers in Fujian.