Page 526 - 2021 White Paper
P. 526
1 White Paper on the Business Environment in China
Science and Technology Micro-credit Company measures have been formulated to properly
of Guangdong Province and Guangzhou Ligen use foreign capital, promote its steady stock
to increase the supply of small loans and small and increase, make every effort to stabilize
re-loans. Reduce annual comprehensive real the basic stock of foreign capital, enhance its
interest rates by 5% to 10% for loans to COVID-19 role in promoting economic development, and
prevention and control related enterprises and accelerate the realization of high-quality economic
enterprises that have been heavily affected by the development through high-level opening
epidemic, and re-loans to micro-credit companies up.Outline of the Development Plan for the
involved in epidemic prevention and control. Guangdong-Hong Kong-Macao Greater Bay Area
Special teams shall be arranged for enterprises
in industries necessary for epidemic prevention, I. Further open up
such as manufacturing of medical devices, drugs
and medical supplies. Eligible loan applications (i) Fully implement the pre - establishment
will be released within 5 working days. Encourage national treatment management system
micro-credit to lower loan interest rates, reduce and negative lists for foreign investment and
formality fees, extend or postpone loans for 1-3 implement the “Special Management Measures
months, waive penalty interest for 1-3 months, for Foreign Investment Access (Negative List)
improve loan renewal arrangements, and (2020 Edition)”. Encourage foreign investment in
increase credit loans and medium- and long- new energy vehicles and relax restrictions on the
term loans for COVID-19 prevention and control proportion of foreign shares in commercial vehicle
enterprises, and enterprises and individuals manufacturing. Support those foreign parties
affected by the epidemic. supporting Sino-foreign passenger vehicle joint
ventures to transfer average fuel consumption
(ii) Appropriately relax the financing leverage and new energy vehicle points according to
of outstanding micro-credit companies. With regulations. Cancel restrictions on the proportion
the approval of the Provincial Local Financial of investment and length of employment of
Supervision and Regulation Bureau, the financing foreign investors in the establishment of foreign
balance of micro-credit companies with good talent agencies and job agencies.
regulatory indicators and active participation in
epidemic prevention and control can be relaxed to (ii) Accelerate the opening up of the financial
no more than 5 times of net assets, the maximum services sector. Support foreign-invested
balance of single-family loans will be raised to enterprises in facilitating payment of income from
no more than 5% of the registered capital and capital accounts. Support overseas institutional
no more than 10 million RMB. Among them, investors to invest in mainland private equity
the balance of funds absorbed through non- funds and venture capital enterprises (funds)
standard financing methods such as loans from in the Greater Bay Area of Guangdong, Hong
banks, small re-loan companies and corporate Kong and Macau through Qualified Foreign
shareholders shall be relaxed to no more than 2 Limited Partners (QFLP). Allow foreign-capital
times of net assets; the balance of funds issued by enterprises to go through the procedures of
bonds, securitized assets and other standardized registration, alteration and cancellation of the
financing instruments on the Exchanges of basic information of domestic direct investment
Shanghai and Shenzhen, will be relaxed to no in banks under their jurisdiction. Carry out trials
more than 3 times of net assets. to reform the registration and management of
foreign debts, allowing foreign-capital enterprises
Notice on Measures to Further Stabilize to register foreign debts in a lump sum twice their
Foreign Investment net assets, and to raise cross-border financing
within the registered amount. Foreign capital
On 21 July 2020, the General Office of the enterprises are allowed to borrow foreign debt
Guangdong Provincial People's Government from the management mode of "bet difference"
issued the “Notice on Measures to Further to the macro-prudential management mode of
S t a b i l i z e Fo r e i g n I n v e s t m e n t ”. T h e f o l l o w i n g cross-border financing. Explore pilot projects to
526
Science and Technology Micro-credit Company measures have been formulated to properly
of Guangdong Province and Guangzhou Ligen use foreign capital, promote its steady stock
to increase the supply of small loans and small and increase, make every effort to stabilize
re-loans. Reduce annual comprehensive real the basic stock of foreign capital, enhance its
interest rates by 5% to 10% for loans to COVID-19 role in promoting economic development, and
prevention and control related enterprises and accelerate the realization of high-quality economic
enterprises that have been heavily affected by the development through high-level opening
epidemic, and re-loans to micro-credit companies up.Outline of the Development Plan for the
involved in epidemic prevention and control. Guangdong-Hong Kong-Macao Greater Bay Area
Special teams shall be arranged for enterprises
in industries necessary for epidemic prevention, I. Further open up
such as manufacturing of medical devices, drugs
and medical supplies. Eligible loan applications (i) Fully implement the pre - establishment
will be released within 5 working days. Encourage national treatment management system
micro-credit to lower loan interest rates, reduce and negative lists for foreign investment and
formality fees, extend or postpone loans for 1-3 implement the “Special Management Measures
months, waive penalty interest for 1-3 months, for Foreign Investment Access (Negative List)
improve loan renewal arrangements, and (2020 Edition)”. Encourage foreign investment in
increase credit loans and medium- and long- new energy vehicles and relax restrictions on the
term loans for COVID-19 prevention and control proportion of foreign shares in commercial vehicle
enterprises, and enterprises and individuals manufacturing. Support those foreign parties
affected by the epidemic. supporting Sino-foreign passenger vehicle joint
ventures to transfer average fuel consumption
(ii) Appropriately relax the financing leverage and new energy vehicle points according to
of outstanding micro-credit companies. With regulations. Cancel restrictions on the proportion
the approval of the Provincial Local Financial of investment and length of employment of
Supervision and Regulation Bureau, the financing foreign investors in the establishment of foreign
balance of micro-credit companies with good talent agencies and job agencies.
regulatory indicators and active participation in
epidemic prevention and control can be relaxed to (ii) Accelerate the opening up of the financial
no more than 5 times of net assets, the maximum services sector. Support foreign-invested
balance of single-family loans will be raised to enterprises in facilitating payment of income from
no more than 5% of the registered capital and capital accounts. Support overseas institutional
no more than 10 million RMB. Among them, investors to invest in mainland private equity
the balance of funds absorbed through non- funds and venture capital enterprises (funds)
standard financing methods such as loans from in the Greater Bay Area of Guangdong, Hong
banks, small re-loan companies and corporate Kong and Macau through Qualified Foreign
shareholders shall be relaxed to no more than 2 Limited Partners (QFLP). Allow foreign-capital
times of net assets; the balance of funds issued by enterprises to go through the procedures of
bonds, securitized assets and other standardized registration, alteration and cancellation of the
financing instruments on the Exchanges of basic information of domestic direct investment
Shanghai and Shenzhen, will be relaxed to no in banks under their jurisdiction. Carry out trials
more than 3 times of net assets. to reform the registration and management of
foreign debts, allowing foreign-capital enterprises
Notice on Measures to Further Stabilize to register foreign debts in a lump sum twice their
Foreign Investment net assets, and to raise cross-border financing
within the registered amount. Foreign capital
On 21 July 2020, the General Office of the enterprises are allowed to borrow foreign debt
Guangdong Provincial People's Government from the management mode of "bet difference"
issued the “Notice on Measures to Further to the macro-prudential management mode of
S t a b i l i z e Fo r e i g n I n v e s t m e n t ”. T h e f o l l o w i n g cross-border financing. Explore pilot projects to
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