Finance is the core of modern economy. The Implementation Opinions on Promoting the High Quality Development of Inclusive Finance have recently been released and pointed out that financial institutions should support the development of small and micro business entities and assist in the effective implementation of the national strategy for rural revitalization.
Ping An Inclusive Financing Guarantee Co., Ltd. (referred to as "Ping An Inclusive Guarantee"), a subsidiary of NYSE LU Holdings (06623. HK), focuses on small and micro economies, leveraging its guarantee advantages to provide business loans to small and micro enterprises and individual businesses. At the same time, by leveraging the advantages of financing guarantee models, it promotes the high-quality development of small and micro enterprises, agriculture, and rural areas, injecting momentum into the development of inclusive finance.
Leveraging the advantages of the guarantee model to build multi-level inclusive financial services
The Implementation Opinions point out that in addition to continuing to guide various banking institutions to adhere to their positioning and healthy competition, financing guarantee institutions, as one of the representatives of supplementary multi-level service entities, form a multi-level inclusive financial service system while helping institutions dare to lend, are willing to lend, can lend, and can lend, and expand the efficiency and coverage of inclusive financial services.
We received a new large order in the second quarter of this year, but the raw materials used for furniture processing were insufficient. Seeing the deadline for furniture delivery coming soon, I was very anxious! Later, I applied for a loan at Ping An Puhui Zhoukou Branch and made a payment of 696000 yuan on the same day, which solved the urgent business problem. "Mr. Li, who is engaged in the furniture industry in Henan Province, sighed.
The decoration company under Mr. Wu's name in Nanchong City, Sichuan Province has also been irrigated by financial "living water". His decoration company mainly deals in decoration materials and commercial housing decoration projects. Recently, Nanchong City has entered a concentrated period of housing delivery, and the competition in the decoration market is fierce. Mr. Wu hopes to further improve the company's decoration technology and service quality, so that the company can maintain a leading position in the industry. Through a friend's introduction and after multiple comparisons and evaluations, Mr. Wu chose Ping An Inclusive Guarantee as his partner and successfully obtained a business loan of 300000 yuan.
After obtaining the financing loan, I plan to further expand the company's business scope, purchase more advanced decoration equipment and materials, improve construction efficiency and quality, and introduce more excellent designers and construction teams to enhance the company's service ability and decoration effect, "Mr. Wu said bluntly.
The smooth borrowing of Mr. Li and Mr. Wu is a microcosm of Ping An's inclusive guarantee to support the development of small and micro entities and private enterprises. As a non bank institution, Ping An's inclusive financing guarantee has efficiently linked financial resources for many years, providing financing services for private economies.
In recent years, under the joint promotion of policies and markets, both government funded and commercial funded financing have gradually explored the "bank funded cooperation" model, addressing the pain points of traditional financial institutions in risk control, customer acquisition, technology, and other aspects of small and micro services from different levels, forming a staggered development and complementary financing guarantee and credit enhancement system to meet the financing needs of small and micro entities at all levels. As an important financing service entity, financing guarantee institutions can achieve the core value of "increasing credit for the demand side and dividing insurance for the supply side" on both sides, playing an important role in promoting the expansion of micro financing coverage for small and medium-sized banks, and establishing a long-term mechanism of daring to lend, willing to lend, able to lend, and able to lend.
According to the 2023 second quarter financial report of Lujinsuo Holdings, the company continues to promote the transformation of its financing company model, further increasing the guarantee ratio, and assisting traditional financial institutions in expanding the coverage of micro financing.
Activate the "basic plate" of rural revitalization and assist in the implementation of national strategies
The Implementation Opinions point out that financial support should be strengthened in areas such as rural industrial development, cultural prosperity, ecological protection, and urban-rural integration; Increase the financial protection efforts of various entities; Strengthen medium and long-term credit support for agricultural and rural infrastructure construction; Focus on supporting county-level advantageous characteristic industries.
Lujinsuo Holdings provides special funding support through its Ping An inclusive financing guarantee, innovates rural assistance models, and improves the service level of agricultural customer groups. On the one hand, it actively explores new models of rural revitalization, continuously increases the supply of high-quality products and services, deeply meets the constantly upgrading personalized consumption needs, and maximizes the activation of rural domestic demand; On the other hand, through the gradual realization of rural revitalization, it effectively promotes the income increase and living conditions of rural residents, laying a solid foundation for tapping into the potential of the rural market.
For many years, the company has implemented projects such as "finance+industry", "finance+women", "finance+culture", and "finance+dual carbon" through its unique "finance+rural multidimensional revitalization model", strengthened financing guarantees, played a positive guiding role in financing services, expanded channels to promote the strengthening of industrial and supply chains, and effectively promoted the common prosperity of rural areas.
Taking Ping An Inclusive Sichuan Branch as an example, we will help local cold soldier cooperatives connect upstream and downstream, empower merchants and farmers with finance, and help more and more villagers solve vegetable sales problems. It is reported that the farmers driven by the Cold Soldier Cooperative have an annual income of over 50000 yuan, and even drive the deposit balance of four nearby towns to increase year by year.
According to the 2022 ESG report disclosed by Lujin Holdings, Ping An's inclusive financing guarantee has assisted nearly 300 rural cooperative leaders and agricultural entrepreneurs in obtaining assistance funds exceeding 142 million, covering 14 provinces and 40 counties, and directly supporting over 800 registered and registered households.
The relevant person in charge stated that in the future, Lujin Holdings will continue to implement the "Implementation Opinions", deeply cultivate the hot land of "inclusive finance", make precise efforts, steadily serve the people's better life, assist the growth of private economies, and contribute to the high-quality development of inclusive finance.