Documentary of Chenzhou financial revolution
In despite of the international financial crisis, Chenzhou kept going ahead. In order to accelerate the development of Chenzhou economy and society, Hunan Provincial Party Committee and Hunan Government issued “policies for the advanced work of Chenzhou undertaking industrial transfer”, through which Chenzhou city enjoyed 34 preferential policies including industrial transfer and financial service to improve its economy and society.
From 2009, following “the suggestion on enhancing and improving financing work” issued by Chenzhou Municipal Party Committee and Chenzhou Government, Chenzhou financial department staff tried their best to carry out financial revolution and innovation. With their great efforts, Chenzhou economy achieved leapfrog improvement. Luo Niansheng, director of Chenzhou Financial Office, said gladly: “all citizens benefited a lot from three years of financial upheavals on financial scale, branches and services.”
Financial scale rapidly advancing
In the recent three years, the size of loan in Chenzhou city has been developing rapidly.
Chenzhou financial institutions firmly kept the principal of serving for real economy. The financial industry tried to optimize its credit structure, implement a“maintain pressure” strategy, and enhance the support for small and micro enterprises, “three rural issues”, energy saving, well being and other weak links and key projects. All these policies greatly helped to support the high speed operation of Chenzhou economy and the construction of major projects.
According to the data, 22.521 billion yuan loans were gained in Chenzhou city in 2008, but it was sharply expanded to be 46.235 billion yuan in 2011, with an annual increase of 27.09%, which was faster than Hunan provincial increase rate and Chenzhou's GDP growth rate. In 2011, the added value of Chenzhou financial industry amounted to 2 billion yuan, which covered 1.5% of Chenzhou's GDP with an increase of 0.5% compared with 2008. All these achievements highlighted the importance of financial industry for Chenzhou economy.
In the recent three years, direct financing in the city is steadily progressing .
Chenzhou city firstly issued “suggestions on encouraging the development of private equity investment fund industry” in Hunan province. 13 provincial key reserve listed enterprises were carefully nurtured in Chenzhou city. Small and micro enterprises were encouraged to introduce the private equity investment. Till now, 2.968 billion yuan equity financing has been accumulated in Chenzhou city, ranking second in Hunan province.
Jingui Silver Group will be listed in this December with an expected finance of one billion yuan. Some reserve listed enterprises were busying in submitting the listing materials to accelerate the listing speed. Furthermore, the extra 1.6 billion yuan corporate bonds were discharged in Chenzhou city. Now Chenzhou ranks first in Hunan province on bond financing.
In the recent three years, Chenzhou insurance business is improving fast.
According to statistics, Chenzhou premium income amounted to 2.51 billion yuan with an average increase of 22.35%. Insurance industry plays a more prominent role in social service and well-being security.
Financial system becomes more open
Due to the sound economical and social development trend and financial condition, banks such as Everbright Bank, Bank of Communications, Huarong Xiangjiang, etc. settled down in Chenzhou city, which greatly promotes Chenzhou to keep its rapid pace on economy and society improvement.
Compared with 2008, there are 11 more banks available in Chenzhou with a total amount of 16 banks. Chenzhou city ranks first in south Hunan for its bank institution quantity and ranks top in Hunan province for its rural bank numbers.
At the same time, the main market players of securities and insurance have been developed steadily. There are 14 securities and futures business departments and 25 insurance institutions available in Chenzhou with an increase of 133% and 66.7% separately compared with 2008.
In the recent three years, the innovative financial institutions are flourishing in Chenzhou city.
The first small loan company with private capitals was set up in Chenzhou on January 22, 2010. With the three years' efforts, now there are 16 small loan companies approved to be established in Chenzhou city, which covers all counties of Chenzhou.
Furthermore, 38 innovative institutions are gradually established in Chenzhou city within the three years and become one of the key parts of Chenzhou financial system.
Financial innovation highlights keeping innovated
In the recent three years, financing methods are keeping innovated.
Besides the bank loan financing mode, there are over 20 new financing modes like enterprise bonds, BT, BOT financing, capital plan, private equity, financing lease, etc. available in Chenzhou city, compared with 2008. Social financing scale was up to 20 billion yuan, financing gurantee agencies reached 15 with 1.2 billion yuan registered capital and accumulated guarantee value amounted to 6.09 billion yuan.
In the recent three years, the financial product is keeping innovated.
ICBC Chenzhou Branch launched “non-ferrous metal warehouse receipt financing” which was named one of the ten innovative financial products of Hunan province.
14 financial products were discharged by Zixing SPD Rural Bank, which helped to issue 3 billion yuan loans.
Bank of Communications Chenzhou Branch developed “special credit for Chenzhou undertaking industrial transfer”, which carried out the stock right pledge financing loan firstly in Chenzhou city with an accumulated capital of 1.159 billion yuan now.
In the recent three year, Chenzhou financial institutions actively explore and innovate more financial service products. Till this September, loans of innovation products have amounted to 28 billion yuan and balance amount was up to 13.5 billion yuan.
In the recent three years, agricultural loan is keeping innovated.
Chenzhou city issued a significant revolution file -“notice for the implementation solutions of innovation pilot work on Chenzhou rural financial products and service methods”, and promoted different ways of financing loans to solve rural financing difficulties. With three years' efforts, more than 5.5 billion yuan agricultural loans were issued in Chenzhou city.
Especially for the innovation of financial elements, Chenzhou established the first rare metal spot trading platform in China and got operation approval in Hunan province. The exchange will release the rare metal trading spot price in CCTV financial channel daily, which is very significant for Chenzhou to take the authority of price on rare metals.
Financial condition is keeping optimized
Chenzhou city carried out a sound financial encourage policy, which greatly inspired the working enthusiasm of the financial institutions. The reward funds issued by Chenzhou government on encouraging policies accumulated to 4 million yuan in recent three years.
Meanwhile, Chenzhou city took positive actions to strike the illegal securities trading, insurance fraud and other financial crimes, which helped to optimize the financial conditions and attract more financial institutions to settle down in Chenzhou city.
With the three years' great efforts on financial revolution and innovation, Chenzhou city achieved its expected targets on the substantial change of financial institutions and improvement of non-performing financial asset ratio. At the end of 2011, the non-performing loan ratio was 5.02% with a decreasing rate of 8% compared with 2008, which enabled Chenzhou city to be one of the areas with the best financial asset quality in Hunan province.
No pains, no gains.
Chenzhou was awarded with the title of “best financial eco-innovation city” in the 7th City Brand Conference of China in 2011, which marks a new stage of Chenzhou financial revolution development.