41. Are there any favorable terms for loans extended to the companies in the hardest-hit industries?

A: Shanghai Banking and Insurance Regulatory Commission urges banking and financial institutions in Shanghai to take measures in order to help affected companies overcome difficulties, such as loan interest rate adjustment, reduction and exemption of service charges.

Banking institutions are encouraged to do what they can to reduce interest rate during a certain period for severely-impacted companies according to the detailed rules made by the banking institutions themselves.

The deeply-affected companies who are able to repay their loans and interests as scheduled will be granted corresponding favorable terms for future loans.

42. I come from a new energy vehicle company, and one of our vehicle models can be used in the epidemic prevention and control, thus I hope to get a loan from banks. Previously, some banks approached us, saying they could make a loan to us. Although we are on the list, it is uncertain whether the loan can be issued. For this, who should I turn to?

A: According to the state and Shanghai local regulations, a list management model is adopted for enterprises playing key roles in the epidemic prevention and control. After application, the companies will be included in the list once examined and approved by Shanghai Municipal Commission of Economy and Informatization and Shanghai Municipal Development and Reform Commission. Key support will be given to seven major types of companies, for example, key medical supply production, purchase and storage as well as supply companies, key supporting enterprises and leading companies for life necessities, and etc. The list is subject to changes in accordance with the needs generated by the epidemic prevention and control and the situation of production and supply.

Companies on the national list can turn to the Shanghai local branches of China Development Bank, the Export-Import Bank of China, Agricultural Development Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China for application.

Companies on the municipal list can apply with Bank of Shanghai, Shanghai Rural Commercial Bank, Shanghai Hua Rui Bank and the local branches of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

43. What measures have Shanghai financial institutions taken to provide financing support for the medium, small and micro-sized enterprises in terms of the return to work, the resumption of production and the restoration of market consumption?

A: Currently, banks in Shanghai have extended more credit loans to the medium, small and micro-sized enterprises. Meanwhile, efforts have been made to further reduce their cost of financing through multiple ways.

First is to leverage PBOC's special re-lending program. The enterprises playing key roles in the epidemic prevention and control who are on the list approved by Shanghai Municipal Commission of Economy and Informatization and Shanghai Municipal Development and Reform Commission for special program of relending can relend from Bank of Shanghai, Shanghai Rural Commercial Bank, Shanghai Hua Rui Bank and the local branches of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

Second is to reduce LPR (Loan Prime Rate) for the corresponding period by 25 basis points, banks in Shanghai can make decisions on their own and provide support to eligible companies.

Third is to leverage PBOC's relending policies to support agriculture and SMEs, Bank of Shanghai, Shanghai Rural Commercial Bank, Shanghai Hua Rui Bank and 14 village or town banks in Shanghai can relend to relevant companies at an interest rate of no higher than 4.55%.

Fourth is to encourage banks to reduce the comprehensive financing cost of inclusive loans for small and micro-sized enterprises by 0.5 percentage points.

In addition, for those severely-affected enterprises and individually-owned businesses who have found it hard to repay the mature debt and temporarily lost source of income, banks are encouraged to provide support through adjusting repayment schedule, extending repayment period, renewing loans without the repayment of principal, deferred payment of interest and exemption of penalty interest among others. These policies are at the discretion of banks after making assessment of the actual situation of companies.

44. Is there more capital support policy for asset-lite companies and tech firms?

A：Currently, responding to companies' financing difficulties and high cost of financing incurred by the lack of mortgage asset, Shanghai has rolled out financial products, such as loan and credit program for new and high-tech firms, loans for innovation firms to go public, tech-firm commitment loan, loans for little-giant tech firms, micro loans, loans for cultural innovation companies, and etc. Relevant banks have introduced venture loan and loan renewal without the repayment of principal, catering to the financing needs of companies at different phases of development.

Meanwhile, tech firms can choose to get listed on the Sci-tech Innovation Board of Shanghai Equity Exchange. Good tech companies can strive for going public on STAR Market of Shanghai Stock Exchange. In addition, in response to the epidemic, financial institutions in Shanghai have rolled out varieties of measures to serve companies' financing needs. Companies can make applications if conditions are met.

45. Shanghai encourages Shanghai Pudong Development Bank, Bank of Shanghai and Shanghai Rural Commercial Bank to expand credit loans in order to support severely-impacted industries and the medium, small and micro-sized enterprises. Whereas for companies who do not have accounts in these three banks, how can they apply for loans?

A: Companies can access more information about related policies on the official websites or WeChat account of the three banks. Telephone consultation is also available:

Bank of Shanghai: Guohua YANG 68476748 

Shanghai Rural Commercial Bank: Yu YANG 61899063  

Shanghai Pudong Development Bank: Honglin ZHANG 68886037  

46. Is there any interest cut for companies that already filed an application for loan? Or is it possible to have relending rate cut on the basis of the existing loan application?

A: During the epidemic period, the existing loan contract should be honored in principle.

For those severely-affected enterprises and individually-owned businesses who have found it hard to repay the mature debt and temporarily lost the source of income, banks are encouraged to provide support through adjusting repayment schedule, extending repayment period, renewing loans without the repayment of principal, deferred payment of interest and exemption of penalty interest among others.

In addition, regarding the PBOC'S relending program targeted at agriculture and SMEs, companies are advised to contact the banks in charge. The policies are at the discretion of banks after making assessment of the actual situation of companies.

47. Some medium, small and micro-sized enterprises are facing operation difficulties due to the epidemic and have temporarily lost the source of income so that they are unable to repay bank loan on time. What measures will Shanghai take in terms of financing guarantee to ease the financing difficulty? And how to do that?

A: To give full play to the functions of policy financing guarantee, Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs (hereinafter referred to as the center) has stepped up its efforts to support the companies who have seen delay in the production and the return to work and a sharp decline in cash flow income and are unable to repay debt on time. In terms of financing guarantee, the center offers the following policy support:

Firstly, the volume is increased and service charge is reduced. To support companies, the Center makes sure the 2020 incremental policy financing guarantee loan will be over RMB 3 billion more than that of the last year. At the same time, the rate of financing guarantee fee for new loan applications from micro, small and medium-sized enterprise is to be reduced to 0.5% per year, and the re-guarantee fee rate is to be cut by half.

The second approach is to give priority to key companies and open green channel. The Center establishes a "white list" in accordance with the list of enterprises playing key roles in the epidemic prevention and control at national and municipal level. With the white list, the center launches parallel approval procedure with cooperating banks, reduce the time it takes to get approval, optimize approval procedures and organize designated team to work on this and provide expedited and customized services. The examination and approval will be done within 2 work days once the materials are complete.

The micro, small and medium-sized enterprises shall submit applications to banks. And the companies on the list of enterprises playing key roles in the epidemic prevention and control are simultaneously incorporated into the Center's "white list". A parallel approval approach will be taken by cooperative banks and the Center. And the companies who have met conditions will be examined by the Center. The Center adopts online approval and will gradually realize the online management covering the whole process including application, acceptance and approval. (hotline: 63771107 for business department I of the center)

48. What are the requirements of the PBOC relending program?

A: Special relending is an important macro policy to guarantee supply. PBOC provides low-cost capital to major national banks and some local incorporated banks in key provinces in an effort to offer low-interest loan to key companies producing, transporting and selling epidemic prevention supplies and life necessities.

The list of key companies is defined by the National Development and Reform Commission, Ministry of Industry and Information Technology and provincial-level people's governments. Financial institutions will provide loans at preferential lending rate to key companies after verifying the intended use of loans. The central budget will subsidize 50% of the actual loan interest rate that companies obtain, making sure that the real financing cost of companies will be lower than 1.6%.

49. Which banks should companies turn to for applying the PBOC earmarked relending?

A: Key companies on the national list for epidemic prevention and control can apply for preferential loans from the Shanghai local branches of China Development Bank, the Export-Import Bank of China, Agricultural Development Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China

Key companies on the municipal list for epidemic prevention and control can apply for preferential loans from Bank of Shanghai, Shanghai Rural Commercial Bank, Shanghai Hua Rui Bank and the local branches of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

50. What is the interest rate of this special relending program?

A: The interest rate will be 250 basis points lower than the one-year Loan Prime Rate (LPR) of the last month. Financial institutions offer credit support at preferential rate to enterprises playing key roles in the epidemic prevention and control with the upper limit of loan rate 100 basis point less than the latest-released one-year LPR at the time when the loans are issued.