Financial support boosted for anti-virus campaign
CHINESE authorities yesterday announced further financial support for the prevention and control of the coronavirus epidemic.
Five major financial authorities — the People’s Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Administration — issued a joint notice that gave top priority to containing the epidemic.
Li Chao, CSRC vice chairman, said that the commission’s Party committee had set up a lead group for epidemic prevention and control work, headed by CSRC chairman Yi Huiman, to strengthen overall coordination, mobilize all forces and implement detailed measures.
The commission has studied pertinent capital market policies and measures to support control of the virus, closely monitoring overseas markets during the Chinese New Year holiday, strengthening the analysis of domestic markets and preparing plans, Li said.
“We have instructed financial institutions to improve their services and maintain business stability.”
For enterprises in the hardest-hit areas such as Hubei Province which are suffering increasing liquidity problems, the commission will step up efforts to offer more preferential policies, giving full play to the functions of the capital market mechanism, and priority to efficient direct financing in the affected areas, to help support enterprises in overcoming the impact of the epidemic.
For instance, for enterprises in the areas whose funds are used for prevention and control of the epidemic, green channels will be opened for issuance of corporate bonds and asset-backed securities with optimized processes.
Private fund managers will be encouraged to direct more social funding to enterprises related to epidemic prevention, including medical equipment firms and companies working on research and development of vaccines and drugs.
The China Fund Industry Association will implement a green channel policy and simplify processes for applications for asset management products set up by private equity and venture capital funds as well as securities and futures operating agencies that invest in relevant sectors, including medical equipment manufacturing and vaccine and drug R&D.
As some listed companies are facing challenges over information disclosure, corporate financing as well as mergers and acquisitions on account of the epidemic, the commission is considering postponing the due date for releasing company annual reports.
The commission will also relax time limits related to M&A’s and reorganization business while also reasonably extending the validity of licenses for related businesses, such as stock and bond financing.