Shanghai announces new project to boost ease of financial services

National Financial Regulatory Administration Shanghai bureau announced on Sunday the launch of a new project that aims to make the city's financing channels smoother, which is part of Shanghai's efforts to create a more market-oriented, legalized and international business environment by stressing high-quality financial services.

Made up of 16 measures, the new project aims to make Shanghai's financial services more accessible, convenient, strategic, safe and people-oriented.

Specifically, Shanghai will continue to expand the scale of inclusive loans rendered to small and micro-sized enterprises. Up to 1.3 trillion yuan ($180 billion) of loans should be provided to these companies by the end of 2024, according to the announcement.

More than 20,000 first-time borrowers should be added in Shanghai and more than 500 billion yuan of bailout capital will be provided this year. A comprehensive financial service model under which credit services are extended to more scenarios should be explored.

Throughout 2024, Shanghai will provide over 1 trillion yuan of seamless loan renewals. By promoting the integration between Shanghai's "insurance code" platform with medical insurance, the city aims to achieve an incremental inclusive insurance coverage of over 200 billion yuan by the end of this year, said the announcement.

In addition, Shanghai will further strengthen the connections between industries and various financing channels. The city will serve more than 25,000 small and micro-sized enterprises that play important roles in the industrial chain. More than 10 new technology-focused bank branches should be set up in 2024. The loan balance given to technology companies should exceed 1.5 trillion yuan by the end of this year, with the expected annual growth rate set at 25 percent. The balance of intellectual property pledge loans should reach about 20 billion yuan. The city's green loan balance should exceed 1.5 trillion yuan this year to accomplish the targets set in the 14th Five-Year Plan (2021-25) in advance.

Shanghai should also set up an inclusive insurance development mechanism, said the announcement. To that end, Shanghai's premium income for personal pension insurance products should arrive at around 1 billion yuan this year, while the number of commercial health insurance policies purchased from the balance of medical insurance personal accounts should top over 100,000. Government financing guarantee business should seek substantial development this year, according to the announcement.