Zhongyou Securities' Huang Fusheng: Financial institutions must accelerate the transformation towards supporting models of policy coordination and credit equity integration.

On March 5th, the government work report clearly proposed to "establish a special fund of 100 billion yuan for fiscal and financial coordination to promote domestic demand, and to use a combination of methods such as discounted loans, financing guarantees, and risk compensation to support the expansion of domestic demand" and to "strengthen financial services for the full chain and lifecycle of technological innovation". Huang Fusheng, Vice President and Chief Economist of China Post Securities, analyzed to reporters that the deeper meaning in this is that financial institutions must actively accelerate transformation, play a synergistic effect with fiscal, employment, industrial and other policies, and accelerate the transformation from a simple credit scale-driven model to a policy-coordinated and credit-equity integrated support model. Huang Fusheng stated that in the past, it was customary to measure the strength of financial services by the growth rate of credit and the scale of social financing. However, in the current critical period of the economy transitioning from "stability through growth" to "quality and efficiency improvement", a single dimensional quantity is no longer sufficient to match the refined requirements of high-quality development. In his view, currently, Chinese financial institutions are achieving this transformation through discounted interest rate policies and AIC equity investment paths. By 2026, financial institutions will need to undergo systematic changes in assessment mechanisms and risk control models, domestically supporting the livelihood bottom line through the "micro-cycle" of consumption and service industries; internationally, seizing future opportunities through the "macro-cycle" of technological innovation investment.