Drawing by Zhang Dawei
In the third quarter, Shanghai’s credit growth rebounded from the previous quarter, financial support for technological innovation showed strength, and real estate credit was basically stable. With the release of the latest financial data, Shanghai’s financing demand has recovered and released positive signals, and new bright spots have emerged in economic operation.
On November 13, the Shanghai headquarters of the People’s Bank of China held a press conference for the fourth quarter of 2023 to introduce Shanghai’s financial operations in the first three quarters. Data show that at the end of September, the balance of domestic and foreign currency loans in Shanghai was 11.02 trillion yuan, a year-on-year increase of 6.5%. Among them, the balance of RMB loans was 10.43 trillion yuan, a year-on-year increase of 8.4%.
Credit growth stabilizes and rebounds
Financing costs remain at historically low levels
“Judging from the quarterly increase, the financing needs of market operators are gradually recovering.” Lu Jinzhong, director of the Survey and Statistics Research Department of the Shanghai Headquarters of the People’s Bank of China, said at the press conference that from the first to the third quarter of this year, Shanghai’s RMB loans increased by 397.5 billion yuan and 125.8 billion yuan respectively. Yuan and 147.4 billion yuan, credit growth has rebounded after bottoming out in the second quarter.
One of the highlights is that Shanghai’s RMB corporate loans have maintained rapid growth. At the end of September, the balance of RMB corporate loans in Shanghai increased by 9.6% year-on-year, and the growth rate continued to be higher than that of various loans. The number of medium- and long-term corporate loans increased significantly, providing sufficient financial support to stabilize investment.
While the total amount of credit has grown, financing costs have declined steadily. In September, the weighted average interest rate of new corporate loans in Shanghai was 3.38%, down 39 basis points from the same period last year, continuing to remain at a historically low range and one of the lowest in the country. Among them, the weighted average interest rate of small and micro loans was 3.61%, a decrease of 38 basis points from the same period last year.
Innovative monetary policy tools
Watering the “Flowers of Science and Technology Innovation”
On the one hand, it is to increase support for re-lending and rediscounting, and on the other hand, it is to continue to exert efforts and innovate structural monetary policy tools – Shanghai Finance continues to increase its support for key areas and weak links.
Data show that as of the end of September, the Shanghai headquarters of the People’s Bank of China has promoted the issuance of special re-loans to banks in Shanghai (including carbon emission reduction support tools and various special re-loans to support clean and efficient utilization of coal, technological innovation, transportation and logistics, and equipment upgrading and transformation). Loans required were 44.86 billion yuan, an increase of 2.37 billion yuan from the end of June.
Among them, science and technology innovation is becoming an important focus and foothold of finance. Wang Rui, Vice President of the Shanghai Branch of the Industrial and Commercial Bank of China, said that as an international financial center and a science and technology innovation center, how Shanghai can promote further linkage and collaboration among financial institutions and establish a complete, stable and efficient science and technology innovation financial ecosystem is an important issue in the next stage. .
As one of the important measures to support the construction of the Shanghai Science and Technology Financial Reform Pilot Zone, the Shanghai Headquarters of the People’s Bank of China innovatively launched the “Shanghai Science and Technology Special Loan” and “Shanghai Science and Technology Special Subsidy” science and technology innovation special re-loan and rediscount products in July to accurately support small businesses. Micro-private scientific and technological innovation enterprises. According to Lu Jinzhong, as of the end of October, the Shanghai headquarters had distributed a total of 25.4 billion yuan in special funds, benefiting more than 3,300 scientific and technological innovation companies.
How can financial institutions help build a scientific and technological innovation financial ecosystem? Shi Hongmin, deputy president and chief financial officer of the Bank of Shanghai, said that the Bank of Shanghai has increased its support for scientific and technological innovation enterprises with high “gold content” and strong “originality” through the “Shanghai Science and Technology Special Loan” and “Shanghai Science and Technology Special Subsidy”. For key areas such as science and technology innovation, inclusiveness, and manufacturing, the bank implements capital price subsidies and preferential economic capital policies; it allocates special financial resources to encourage the entire bank to increase expansion efforts and reduce corporate financing costs. At the same time, for science and technology private enterprises operating with light capital, we will change the traditional strong mortgage credit granting method of banks, pay more attention to the long-term value and lasting benefits of the industry track, invest funds in first-time loan customers, and use credit loans as much as possible to improve corporate financing. of availability.
Shanghai real estate credit operation
Overall stabilization has been achieved
Currently, Shanghai’s existing first-home loan interest rates are being lowered in an orderly manner, and real estate credit is basically stable.
As of October 31, Shanghai has completed reductions in interest rates for first-home loans in approximately 265,100 loans, with a loan amount of approximately 263.2 billion yuan, and the weighted average interest rate of loans has been reduced by nearly 45 basis points.
“Affected by early loan repayments, the growth rate of domestic personal housing loans has continued to decline since last year, but with continued policy support, the city’s real estate credit operations have achieved overall stabilization.” Lu Jinzhong said.
Data show that at the end of September, the balance of RMB real estate loans in Shanghai was 2.68 trillion yuan, a year-on-year increase of 1.7%, an increase of 0.3 percentage points from the end of last month. Among them, the balance of personal housing loans decreased by 2% year-on-year, and the balance of real estate development loans increased by 9.7% year-on-year.