In order to introduce financial innovation and financial products that can help solve corporation financing problems, a special promotion conference on Fujian’s banking system was held on June 20 in Fuzhou, the capital of Fujian province.

According to Yang Changyan, deputy governor of the Central Branch of the People’s Bank of China (PBOC), Fujian issued enterprise bonds of $25 billion (156.4 billion yuan) by the end of May 2014. As of May, there are 13 bond issue projects, with a total amount of 21.9 billion yuan.

The banks also are using a new credit mechanism that bounds enterprises together to apply for loans, to solve the difficult problem of medium-and-small enterprises getting loans.

“Fujian’s enterprise bonds keep good quality due to successful risk control,” Yang said.

He also promoted typical financial products and services that offer financial support for micro-enterprises, such as credit loan products introduced by Industry and Commercial Bank of China (ICBC) and Construction Bank of China (CBC), both of which serve micro-enterprises to operate with higher quote of loans at a lower rate.

Fujian is in the process of economic structure adjustment amid the economic downward pressure. To aid the real economy, Fujian’s banking sector is innovating in new financial products, and lower financing costs, and urging the economy to maintain stable development, said Chen Xiaonan, deputy governor of the Fujian Banking Regulatory Bureau.

According to Chen, as of May, Fujian’s new loans increased to 1.8 trillion billion yuan, a year-on-year increase of 115 billion yuan. In the first quarter, banks supported a total of 490 leading enterprises and key projects, and provided loans of 261 billion yuan. From January to May, the loans for micro-enterprises increased by 313 billion yuan, and agriculture-related loans increased by 750 billion yuan.

Moreover, according to Fujian government’s deployment, the Fujian Financial Services Office, Fujian Provincial Economic and Trade Commission, Fujian Banking Regulatory Bureau, and the People’s Bank of China are working together under the enterprise emergency fund response mechanism.

Chen also recommended some financial products that can lower financing costs. She also said that banks managed different types of loans according to cash conversion cycle.

Chen Defu, vice president of Industrial Securities, introduced the Pingtan Venture Capital Fund at the conference, which is co-sponsored by Pingtan government, Fujian government departments including the provincial development and reform commission, Fujian Finance Bureau, and Fujian Commission of Economy and Information.

By Peng Juan from China Daily Fujian Bureau