The Lin-gang Special Area in East China's Shanghai on March 11 set up a financing guarantee company -- Shanghai Lin-gang Financing Guarantee Co Ltd -- and launched a cooperation mechanism between government and banks for financing guarantees.

The development reportedly marks significant progress made by the Lin-gang Special Area in the implementation of inclusive finance and in optimizing its business environment.

Inclusive finance is the range of banking products and financial services made available to smaller businesses who are usually locked out of the higher end of the conventional banking system due to their lower earnings.

The financing guarantee company will reportedly provide consistent, strong and accurate financial support for key industries in the Lin-gang Special Area, as well as promote the long-term development of companies and industrial systems.

It is understood that the company will bolster the capabilities of finance in promoting the development of a substantial economy there through multiple channels and means.

The company will promote industry-finance integration and optimize the business environment in the area. It will help alleviate the difficulty of getting finance and high financing costs for medium, small and micro technology-based enterprises in key industries.

The company will continue to optimize its product range by employing multiple policy instruments – including loans with discounted interest – under the supervision and guidance of the Shanghai Municipal Finance Bureau and the Lin-gang Special Area Administration.

It will establish comprehensive financial service schemes tailored to Lin-gang's specific needs and expand the scope of its services to cover more medium, small and micro technology-based enterprises.

Additionally, the company will establish strategic relations with the Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs and explore various cooperation modes to form effective links and give full play to the respective advantages of both sides.

The company will participate in joint visits to resident companies and businesses with the Lin-gang Special Area Administration and financial institutions, to explore and develop customized financial services in industrial parks as well as to resolve the financing needs of the enterprises in the area.

Shanghai Lin-gang Financing Guarantee Co Ltd establishes strategic cooperation relations with 17 commercial banks in the Lin-gang Special Area on March 11, 2021. [Photo/thepaper.cn]