Make higher-quality financial products, service more accessible: CSRC
By Zhang Huimin
["china"]
The supply of financial elements is ultimately achieved by financial products, requiring higher-quality financial products and services be more accessible to companies, said Yan Qingmin, vice chairman of the China Securities Regulatory Commission (CSRC) at the Tsinghua PBCSF Global Finance Forum Saturday.
The financial products should be designed in accordance with the real economy with the small and medium-sized enterprises (SMEs) as their main body, Yan stressed.
"The assessment of clients' credit risk by banks at present is based more on the value of collaterals instead of cash flow and net profit, which makes it difficult for innovative and entrepreneurial SMEs to obtain sufficient loan support."
He called for more flexible and integrated financing tools and policies for SMEs. For sci-tech firms, it's better that money is secured first through investment then through debt financing, since security companies have more expertise in valuation while banks have cash.
Safety is also an essential requirement for financial products as entity enterprises would be faced with great market risks as they further get integrated into the global division of labor and competition without safe, sufficient and effective financial tools, he noted.
The two-day meeting at Tsinghua University is centered around financial supply-side reform and opening-up with nine sessions mainly on capital market and technological innovation, integration of fintech and traditional finance, and financial risk prevention and solution.