Huangpu initiates China's 1st district-level inclusive finance mechanism

Guangzhou's Huangpu district recently launched an inclusive finance loan risk compensation mechanism at the Guangzhou Science and Innovation Financial Services Base.

Huangpu is the first district in China to have launched such a mechanism.

This mechanism aims to support micro, small, and medium-sized enterprises (MSMEs) by providing up to 50 million yuan ($6.9 million) in annual financial compensation. It will target credit loans to MSMEs that are issued by cooperating banks, and will have a maximum limit of 10 million yuan.

Huangpu's initiative is a response to national-level inclusive finance policies, and is designed to expand the coverage and reduce the costs for enterprises.

Huangpu is also actively promoting financial services to support the real economy, as it is aggregating financial resources to foster local enterprise growth. Additionally, the district has established multiple financial service platforms, including the Greater Bay Area Cross-Border Wealth Management and Asset Management Center. 

The district plans on further deepening its financial reforms, fostering the integration of finance with technology and industry, and providing strong support for its high-quality development.