China Rolls Out Fiscal Support Plan for Printing Industry Revitalization

To implement the spirit of the "Notice of the State Council on Printing and Distributing the Revitalization Plan for the Cultural Industry," further improve and enhance financial services for China's cultural industry, and support the revitalization, development and prosperity of the cultural industry, the People's Bank of China, together with nine ministries and commissions including the Publicity Department of the CPC Central Committee, the Ministry of Finance, the Ministry of Culture, the State Administration of Radio, Film and Television, the General Administration of Press and Publication, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission, recently jointly issued the "Guiding Opinions on Financial Support for the Revitalization, Development and Prosperity of the Cultural Industry." The "Guiding Opinions" is, in recent years, the macro financial policy guidance document for financial support to the development and prosperity of the cultural industry.

Promoting innovation in financial products to boost the development of the cultural industry

In response to current problems such as cultural enterprises having few tangible assets, many intangible assets and insufficient collateral, the "Guiding Opinions" closely focuses on promoting the effective alignment of financial capital with the cultural industry and promoting the great development and prosperity of the cultural industry; it is grounded in giving play to multi-level financial market resources such as credit, insurance and securities, in giving play to the joint efforts of publicity and culture, finance, fiscal and other departments, and in promoting innovation in financial products and improving financial services, taking multiple measures and working through multiple channels to pool financial and fiscal resources and boost the development of the cultural industry and cultural prosperity.

The "Guiding Opinions" requires that financial institutions, according to the different characteristics of cultural enterprises, actively develop credit products suited to the characteristics of the cultural industry and increase effective credit supply.

Developing a multi-level capital market to expand direct financing for cultural enterprises

The "Guiding Opinions" proposes vigorously developing a multi-level capital market and expanding the scale of direct financing for cultural enterprises. It promotes qualified cultural enterprises to seek listing and financing, supports qualified cultural enterprises in raising funds by issuing bonds and bills, explores carrying out pilot asset securitization of cultural industry projects, and encourages risk-preferring investors such as venture capital funds and private equity funds to actively enter emerging cultural formats that are in the start-up stage and have broad market prospects.

It is necessary to actively cultivate and develop the cultural industry insurance market. Insurance institutions should, according to the characteristics of cultural enterprises, actively develop insurance products suited to the needs of cultural enterprises, encourage insurance companies to explore carrying out credit insurance business, further strengthen and improve insurance services for cultural export enterprises, and actively provide export credit insurance services.

Establishing a modern enterprise system to lay the institutional foundation for financial support

The "Guiding Opinions" makes clear that supporting mechanisms conducive to financial support for the development of the cultural industry shall be established and improved.

First, advance cultural enterprises in establishing a modern enterprise system and improving their corporate governance structure, so as to lay a sound institutional foundation for financial support to the development of the cultural industry. Second, central and local governments may, through special funds for cultural industry development and other means, grant loan interest subsidies and premium subsidies to qualified cultural enterprises. Third, establish a multi-level loan risk sharing and compensation mechanism, improve the legal system for supporting property rights, and effectively safeguard the rights and interests of all parties. Fourth, strengthen coordination between credit policy and industrial policy, and formulate and regularly improve the "Catalogue of Investment Guidance for the Cultural Industry." Fifth, establish a multi-department information communication mechanism and build an investment and financing service platform for the cultural industry. Sixth, strengthen the supervision and evaluation of policy implementation and explore establishing a system for evaluating the policy-oriented effects of financial support for the development of the cultural industry, so as to ensure that policies are put into effect.

How financial services will innovate rights pledge. Actively carry out supply chain financing for upstream and downstream enterprises, support enterprises in carrying out merger and acquisition financing, and promote the integration of industry chains. For enterprises with stable logistics and cash flow, loans pledged against accounts receivable and warehouse receipts may be issued. For enterprises that lease performance, exhibition, animation, game, publishing content collection, processing, production and storage equipment, and equipment for publication logistics, printing and reproduction, and the production, transmission and integration of radio, film and television programs and film projection, financial leasing loans may be issued. Establish an intangible asset evaluation system for cultural enterprises, so as to provide safeguards for financial institutions in disposing of cultural intangible assets. For enterprises with trademark rights, rights, copyrights, the scope of application of loans pledged against income rights may be gradually expanded through means such as rights pledge loans.

Differential interest rates improve the interest rate pricing mechanism and reasonably determine loan terms and interest rates. Financial institutions should, on the basis of the principles of controllable risk and commercial sustainability and according to the actual circumstances of different cultural enterprises, establish flexible differentiated pricing mechanisms that meet regulatory requirements. In view of the project cycle characteristics and risk features of some cultural industry projects, financial institutions may scientifically and reasonably determine loan terms according to the funding needs of the project cycle and the distribution of cash flow. For cultural industry projects or enterprises listed as key national support, financial institutions may appropriately extend the loan term on the basis of effectively preventing risks.

Bad debt exemption establish an evaluation system specifically for financial services to the cultural industry, combine strengthening credit risk management with actively promoting the development of the cultural industry, and establish a positive incentive mechanism. On the basis of implementing work responsibilities and assessing overall quality and comprehensive returns, for loan projects of small and medium-sized cultural enterprises, the corresponding responsibilities of the persons concerned shall be pursued or exempted according to actual circumstances and relevant provisions, so that those who perform their duties are exempted and those who neglect them are held accountable.

Non-bank finance banking financial institutions and non-bank financial institutions should actively strengthen cooperation, comprehensively utilize multiple financial businesses and financial products, launch package financial services integrating multiple instruments such as credit, bonds, trusts, funds and insurance, and do a good job in connecting the financing methods of cultural enterprises across their development stages from start-up to maturity.

Consumer credit develop consumer credit varieties such as installment payment, and expand comprehensive consumer credit supply for performing arts and entertainment, exhibitions and tourism, art works and handicrafts, animation and games, digital products, creative design; publishing products and services such as books, newspapers and periodicals, audio-visual products, electronic publications, online publishing and digital publishing; printing, reproduction and distribution; and high-definition television, pay radio and television, mobile multimedia radio and television, and film products. Strengthen the promotion of online banking business and raise the level of online payment application in industries such as software, network and computer services, design services and leisure and entertainment. Further give play to the role of the People's Bank of China's payment and clearing and credit reporting systems, accelerate the improvement of the bank card acceptance environment, and promote card-based consumption in industries such as culture and entertainment, radio, film and television, press and publication, tourism and advertising, and art trading.

Foreign exchange facilitation facilitate cross-border investment by cultural enterprises, satisfy the reasonable foreign exchange needs of cultural enterprises in foreign trade, cross-border financing and investment, improve the efficiency of foreign exchange administration, simplify and optimize foreign exchange administration business processes, and promote cultural enterprises in raising the efficiency of foreign exchange fund use and reducing financial costs.

——This article is reprinted from China Packaging Network (pack.cn), original link: http://news.pack.cn/show-362195.html