On 27 November 2023 the People’s Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance and the All-China Federation of Industry and Commerce jointly issued a notice on strengthening financial support for the private economy (Yin Fa [2023] No. 233), containing twenty-five measures in seven areas.
The direction is clear: rather than simply asking banks to lend more, the measures improve private enterprises’ access to financial resources across credit, bonds, equity, cross-border finance and policy transmission. As financing windows open, financial institutions will scrutinise compliance more closely.
Changes on the credit side
The notice requires financial institutions to set annual service targets for private enterprises, raise the weight of private-business performance in assessment and gradually increase the share of private-enterprise lending. It also emphasises support for technology innovation, specialised and sophisticated enterprises, and green and low-carbon sectors.
In practice, more credit products become available, but banks will require more complete operating evidence. For technology companies, intellectual property, R&D spending, orders and payments must form a verifiable chain.
Bond and equity financing
The notice expands private-enterprise bond financing, supporting registration and issuance of science-innovation notes, science-innovation bonds and green bonds, optimising the registration mechanism and supporting shelf registration. On equity, it emphasises capital-market financing for private enterprises.
Both bond and equity financing depend on disclosure. Companies need not only financial data but corporate governance, related-party transactions, use of proceeds and risk factors. Materials assembled at the last minute rarely pass review.
Cross-border finance
The notice addresses cross-border financial facilitation, including support for private enterprises going global and for cross-border trade and investment. For outbound businesses, settlement, offshore financing and fund transfers may become more convenient, but foreign-exchange, AML and tax requirements will not be relaxed.
Companies should design cross-border structure, fund paths and tax arrangements together. Optimising one segment in isolation often creates risk elsewhere.
Five categories of documents before financing
First, entity and equity documents: business licence, articles, shareholder register, ultimate-controller statement and historical equity changes.
Second, operating evidence: key contracts, orders, invoices, logistics and payments demonstrating revenue authenticity and continuity.
Third, financial and tax materials: three years of financial statements, tax filings, audit reports where available and major account details.
Fourth, intellectual property and qualifications: patents, software copyrights, trademarks, sector licences and certifications.
Fifth, risk disclosure: litigation, arbitration, administrative penalties, guarantees, outbound investments and related-party transactions.
Not every financing requires all of these, but they determine how quickly a company can respond to banks, rating agencies, exchanges or investors.
Do not overlook compliance representations
Representations and warranties in financing documents are often treated as boilerplate. In practice they allocate responsibility. Companies should ensure statements are verifiable and avoid over-promising to meet a financing timetable.
For financing and equity arrangements, see our financing and equity service; for bond financing, see debt financing; for equity financing and capital markets, see equity financing.
This article is based on the notice on strengthening financial support for the private economy jointly issued by eight departments on 27 November 2023. It is for reference only and does not constitute legal advice.