To discuss the sustainable development of small-micro finance under new era of economic development and facilitate a better linkage between small-loan companies and multi-tiered capital market, a seminar was held on Mar 3rd, 2015 in Jinan about small-loan companies’ linkage to multi-tiered capital market, aiming at strengthening small-loan companies’ role in providing comprehensive financial services for medium, small and micro-sized enterprises and a better support for the development of agriculture, rural areas and farmers and medium, small and micro-sized enterprises. The seminar was hosted by Shenzhen Securities Information Co., Ltd. with China Association of Micro-credit, Shandong Provincial Financial Office and Shenzhen Stock Exchange as co-sponsors, on which issues were explored such as global development of small-loan business and its experience, the importance and significance of small-loan asset securitization, listed prospects and financing channels of small-loan companies. Xia Geng, Vice Governor of Shandong Province, Min Luhao, President of China Association of Micro-credit, Li Yongjian, Director of Shandong Provincial Financial Office and Song Liping, President and CEO of SZSE, all the four leaders above attended and addressed the seminar. Guests also included those who lead small-loan companies, associations of small-loan companies and financial offices nationwide, totaling over 650.
With the current financing plight of small-loan business, some small-loan companies acquire the linkage to capital market via listing on multi-tiered capital market or issuing asset securitization products, effectively improving their standardized level, promoting sustainable development and broadening financing channels. Doctor Wang Jun, Chief Financial Expert from Global Finance and Market Bureau of World Bank, elaborated with a global perspective on the evolving process of China’s small-micro finance from germination to comprehensive and rapid development. Meanwhile, he stressed the importance of sustainable development of small-micro finance business, which should be kept at a regression-based state at present. Currently, China’s small-loan companies have already edged themselves into overseas capital market, such as NASDAQ and Hong Kong Stock Exchange. Domestic multi-tiered capital market, NEEQ and regional equity market for instance, also witnessed in the past two years a rapid increase in the number of listed small-loan companies. But still no small-loan companies get listed on SSE or SZSE. Chen Feng, Associate Director of Listing Promotion Department of SZSE introduced the market cultivation system of SZSE and gave an outlook on listed prospects of small-loan companies under a background of revolution on registration system.
With respect to the financing problems confronting micro-credit companies, Wang Dongming, Chairman of the Board of CITIC Securities, elaborated the significance of asset securitization for micro-credit companies through practical cases. He said, securitization could not only effectively revitalize stock assets and broaden financing channels, but could also enrich investment varieties in the secondary market. Zhang Guoxiang, Chairman of the Board of Chongqing Hanhua Financial Holding Co., Ltd., discussed the innovative financing measures from the aspects of debt financing and equity financing. Liang Yuyin, Manager of SZSE Fixed Income Department, gave a detailed introduction to the procedures for asset-backed securities getting listed on SZSE under the system of record-filing through securitization cases such as the Alibaba Micro Credit Securitization Product. For the past two years, there have been 13 asset-backed products of micro-credit getting listed on SZSE, with issuing volume of RMB 7.593 billion in total.
Song Liping, President and CEO of SZSE, who believes in the unique and irreplaceable role of micro-credit companies in serving real economy, especially local economy, said that we should have full confidence in the micro-credit industry, and our faith in the development of Inclusive Financial System should remain unswervingly. The exploration of linkage channels between micro-credit companies and multi-tiered capital market can not only provide a new platform for the development of micro-credit companies, but will also become a new growth pole of capital market. Currently, the enhancement of standardized operation level by micro-credit companies and micro-credit industry is not only the key for them to open the door to capital market, but also the inevitable course must be taken for the sustainable development of micro-credit finance.
From the point of current development situation of China’s micro-credit industry, there are 8791 small-loan companies as of the end of 2014, with outstanding loans of RMB 942 billion. Loan increment for the year of 2014 is RMB 122.8 billion. A total of 109948 employees are serving these companies, absorbing capitals as much as RMB 828.306 billion. The number of micro-credit companies ranks the top in Jiangsu Province, where a total of 631 companies are absorbing capitals of RMB 92.991 billion, with outstanding loans of RMB 114.666 billion.
As being in the period of fast growth, the micro-credit industry is crying for omnibearing training and extensive communication for the sake of the industry’s healthy and orderly development, which is also an important task of China Association of Micro-credit. Based on such purpose, a training base project for China’s micro-credit industry in Shandong was launched at the seminar. Meanwhile, China Inclusive Financial Research Center introduced to participants the Research Report on Inclusive Financial Situations in Shandong Province and other research achievements made based on their extensive investigation in Shandong.