The China Banking and Insurance Regulatory Commission released on April 8, 2022 the Circular on Further Stepping up Financial Support for Development of Micro and Small Enterprises in 2022.
According to the Circular, more medium- and long-term credit will be provided to micro and small enterprises in advanced manufacturing and strategic emerging industries, and more effort will be made to meet medium- and long-term capital needs of SMEs in traditional industries for equipment replacement, technological upgrade and green transformation. Banking and insurance institutions will be guided to connect with competent authorities, and to establish and improve information sharing mechanism for SMEs in specialized areas. The institutions shall also improve science-based credit and insurance services, and banks are also encouraged to explore, together with external investment institutions, the "loan + external investment" model to serve science and technology innovation SMEs while keeping risks under control. Insurers shall provide foreign exchange hedging products for SMEs engaging in international trade, and expand the coverage and scale of export credit insurance for micro, small and medium players in this field.