The influx of financial resources brings nourishment! A clear roadmap for supporting the new type of industrialization is now in place.

On August 5th, the People's Bank of China and six other departments released the Guiding Opinions on Financial Support for the New Type of Industrialization (hereinafter referred to as the "Guiding Opinions"). Focusing on the significant strategic tasks of the new type of industrialization, the document proposes 18 specific measures to provide targeted support.

The Guiding Opinions set an overall roadmap for financial support of the new type of industrialization: by 2027, a mature financial system supporting advanced, intelligent, and green development of manufacturing will be basically established, with improved service adaptability. The effective credit needs of manufacturing enterprises will be fully met, and the number and scale of bonds issued by these companies will continue to grow. Meanwhile, the level of equity financing will be significantly enhanced.

Adhering to the principles of differentiated policies and the combination of support and control, the Guiding Opinions outline a clear roadmap to accelerate the shift of industries to the medium- and high-end levels.

To support the unleashing of innovative vitality in manufacturing enterprises, the Guiding Opinions propose optimizing financial policy tools and attracting long-term capital and patient capital for development. To enhance the resilience of the industrial chains and supply chains, the opinions call for strengthening financial services for key enterprises. To accelerate the construction of a modern industrial system, the opinions recommend optimizing financial services for traditional manufacturing, improving the quality and efficiency of technology and finance, leveraging green finance as a driving force, enhancing digital financial empowerment, and deepening financial services for industrial chains. To support the reasonable layout of industries, the opinions suggest increasing the flexibility of financial services for industrial transfer, the professionalism of financial services for characteristic industries, and the convenience of cross-border financial services...

"In line with the key tasks of the new type of industrialization, these measures adhere to the principle of using industrial demand to drive deepening financial supply-side structural reform. They aim to build a comprehensive, differentiated, and professional financial service system, forming a clear path for financial support of the new type of industrialization," said Hou Chengqi, a professor at the School of Economics at Beijing Institute of Technology.

In recent years, the financial system has continuously optimized the structure of capital supply, increasing bond and equity financing support for the new type of industrialization.

By the end of June, the balance of medium- and long-term loans for the manufacturing sector in China had increased by 8.7% year-on-year, exceeding the growth rate of all types of loans. In the first half of the year, the A-share market raised a total of 148.8 billion yuan for companies in the information industry through initial public offerings, additional issues, and convertible bond financing, an increase of 51.6% year-on-year.

While financial support for the new type of industrialization has led to an increase in the overall volume, enterprises have higher expectations for the quality and adaptability of financial services.

"The Guiding Opinions not only introduce a series of measures to support the new type of industrialization but also provide ideas for establishing long-term mechanisms to provide more sustainable, precise, and effective support for the new type of industrialization," said Hou Chengqi.

Sustainable support requires abundant and stable capital. The opinions propose strengthening the internal mechanisms of financial institutions to serve the manufacturing industry by setting aside separate credit plans for manufacturing and formulating differentiated credit policies based on the characteristics of each sub-sector and the growth stages of enterprises.

More precise support requires a more professional workforce. The opinions encourage financial institutions to station financial officers in industrial parks and to recruit and introduce talents with backgrounds in advanced manufacturing. Many measures are proposed to encourage financial institutions and industrial departments to jointly cultivate a workforce of professionals with expertise in science, technology, finance, and the industry.

More effective support requires enhanced policy coordination. The opinions propose establishing and improving mechanisms for inter-departmental coordination and policy incentives and constraints, leveraging the guiding role of structural monetary and macro-credit policies to continuously increase the intensity and precision of financial support for the new type of industrialization.

Advancing the new type of industrialization requires higher quality financial services and closer integration of industry and finance. As the measures and mechanisms outlined in the opinions are gradually implemented, the financial system will provide higher quality and more precise support to ensure the construction of the new type of industrialization, helping to strengthen and invigorate the Chinese economy.