Wei Jie

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A FINANCIAL program was inaugurated yesterday at the Civic Center in Futian District to address the financial difficulties faced by a large number of local enterprises.

Shenzhen Mayor Chen Rugui, Vice Mayor Ai Xuefeng and other senior officials with district governments and departments attended the opening ceremony.

Dubbed the “Financial Ark,” the first batch of 1,020 companies have been included in the program, under which the companies are able to secure bank loans vital to their business operations, according to the Securities Times.

He Jie, director of Shenzhen Municipal Local Financial Regulatory Bureau, the government agency behind the financial program, said the “Financial Ark” had been initiated as a response to the global novel coronavirus (COVID-19) pandemic that has affected a large number of small and medium-sized enterprises (SMEs). The program is backed by the Shenzhen branch of the People’s Bank of China, the city’s banking and insurance regulatory commission, the securities regulatory commission and the Shenzhen Stock Exchange.

Cooperation agreements were signed between the Shenzhen branch of the China Development Bank and Shenzhen Metro Group, in addition to four other banks and four companies responsible for the city’s major projects at the initiation ceremony.

Official statistics showed that more than 20 banks in Shenzhen have extended credit of 362.31 billion yuan (US$51.32 billion) to the major projects for 2020 on the city government’s list unveiled in late February.

The quick response by the city’s financial industry has stabilized the economy and helped many local enterprises resume work following the month-long economic lockdown, said Mayor Chen at the initiation ceremony.

Chen urged the financial institutions to develop more financial products catering to the actual needs of the SMEs to help them get back on track.

According to He, the “Financial Ark” program mainly focuses on helping SMEs that have been most vulnerable to the pandemic, such as exporters, logistics companies, dining and accommodation businesses and the cultural and leisure sector.

SMEs that play an important role in an industrial chain and the advanced manufacturing companies facing temporary capital flow problems due to the pandemic outbreak will also be included on board the “financial ark,” He said.

The first batch of 1,020 companies in urgent need of financial support were selected by various government departments such as the transport bureau and the culture, radio, television, tourism and sports bureau after reviews by the relevant authorities. The companies will be directly connected to financial institutions that participate in the program for loans and other financial products to help them raise funds through a green channel. Banks will offer favorable interest rates to SMEs on board of the “Financial Ark,” the Times said.

He said SMEs will be released from the financial program after their business operations get back on track to make room for other companies that need assistance in dealing with financial difficulties.