People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, Several Opinions on Financially Supporting the Steady Growth, Structural Adjustment and Increased Efficiency of Industry

Issued: February 14 2016

Main contents: According to the Opinions, promotion of the securitization of housing and motor vehicle loans will be accelerated. Subject to prudence and stability, a small number of qualified financial institutions will be selected to explore the launching of a pilot project for the securitization of non-performing assets. Promotion of the development of the enterprise asset securitization business, such as accounts receivable securitization, will be accelerated to revitalize asset stocks of industrial enterprises (Article 7).

The Opinions simplify the approval procedure for domestic enterprises seeking foreign financing and encourage domestic industrial enterprises to utilize offshore markets to issue stock, bond and asset securitization products. They also support industrial enterprises in using the renminbi for pricing and settlement in foreign economic activities, optimize the administration of the extension of renminbi loans to foreign parties and encourage industrial enterprises to use the renminbi in making loans to foreign parties and investing abroad (Article 13).

Subject to risk controllability, the Opinions also encourage banking financial institutions to suitably reduce the down payment percentage for loans for alternative fuel vehicles and used vehicles (Article 2).