To help traditional industries shift from scale advantage to quality advantage, the Financial Regulatory Bureau of Guangdong Province recently issued the Notice on Financial Support for the Optimization and Upgrading of Traditional Industries in Guangdong.
The document introduces 16 targeted financial measures and establishes a “4+4+4” working mechanism to empower the transformation of traditional industries and inject financial momentum into their high-quality development.
It is noted that the optimization and upgrading of traditional industries have generated new financial demands. The traditional credit model, which relies on balance sheets and mortgage guarantees, can hardly meet the needs of transforming enterprises characterized by asset-light operation, rapid iteration and high growth.
To address this problem, Guangdong’s 16 financial measures achieve breakthroughs in multiple areas:
It clarifies optimization in four areas: credit management, risk control, talent development and incentive mechanisms, removing bottlenecks in financial services.
It improves the adaptability of financial products covering four links: R&D and innovation, manufacturing, brand building and marketing.
It relies on four supporting systems: financing + intellectual support, fiscal + financial, headquarters + branches, and industrial standards + best practices, to align efforts of governments, financial institutions and industry associations.
Going forward, the Financial Regulatory Bureau of Guangdong Province will summarize effective practices of financial support for traditional industries. It will guide financial institutions to focus on core needs of industrial clusters, and develop replicable and scalable models of financial empowerment. The move will help deepen the integration of service and manufacturing sectors, and contribute financial strength to revitalize traditional industries.