Special Guarantee Programs with Policy-Based

Since 2002, ZGC Guaranty has initiated some special guarantee programs with policy-driven to alternatively support the target SMEs which meet the government’s policy requirements.

The Characteristics of Special Guarantee Programs

  • Selecting Special Target Clients;
  • Making Special Appraisal System;
  • Providing Special Supporting Policy.

Basic Operating Patterns of Special Guarantee Programs

  • The government makes policy and targets supported;
  • For the target applicants who have financing demands, they are normally requested to accept a credit rating or credit investigation made by the credit agencies appointed;
  • Then, ZGC Guaranty appraises applicants’ repayment abilities and provides guarantees for those who meet certain credit terms;
  • Banks provide the loans guaranteed to the qualified applicants;
  • The government subsidies target borrowers the loan interests and guarantee fees under certain proportion

Brief Introduction of Some Special Guarantee Programs

1. “Antelope Program”

This program is to provide financing guarantee supports to the fast growth hi-tech enterprises registered in the Zhongguancun Science Park. The purpose of designing such program is to facilitate hi-tech enterprises stronger and more competent. The enterprises which intend to apply for “Antelope Program” must meet the following basic requirements as:

  1. Annual sales income must reach 10 million yuan or above;
  2. Compared with last year, the increasing rate of sales income must be 20% or above while the increasing rate of profits must be 10% or above;
  3. The grade of credit rating must be BB or above.

For the applicants meeting the requirements above, they could be granted the following incentives as:

  1. ZGC Guaranty simplifies the appraisal procedures and implements a preferential charging policy;
  2. Banks simplifies the loan approval procedures and implement a preferential interest rate policy;
  3. The government subsidies the qualified borrowers 20-40% of interests based on their credit records.

Until the first half year of 2007, ZGC Guaranty has guaranteed 583 enterprises which meet the requirements of “Antelope Program” with the cumulative guarantee volume as high as 6.567 billion yuan.

 

2. “One Stop Guarantee Program for Start-up Business Run by the Returnees of Overseas Chinese Students”

This program is to provide financing guarantee support for the start-up enterprises run by the returnees of overseas Chinese students. The purpose of designing such program is to attract the more overseas Chinese students back to China to open their own businesses so as to further enhance the national innovation capability. The enterprises which apply for this program must meet the following requirements as:

  1. The main shareholders must be the returnees of overseas Chinese students;
  2. The applicants hold the innovative technologies which could bring the better market prospects;
  3. The main owners must have a good personal credit track.

For those who satisfy the requirements above, they can be granted the following incentives as:

  1. ZGC Guaranty further simplifies the appraisal procedures and   implements a more referential charging policy;
  2. Banks simplifies the loan approval procedures and implement a preferential interest rate policy;
  3. The government subsidies the qualified borrowers 50% of interests and 50% of guarantee fees respectively .

Until the first half year of 2007, ZGC Guaranty has accumulatively guaranteed 257 start-up enterprises run buy the returnees of overseas Chinese students with the guarantee volume totaling 195.8 million yuan.

 

3 “One Stop Guarantee Program for IC Designing Enterprises”

This program is to provide financing guarantee support to those hi-tech enterprises which are engaged in designing and production of integrated circuit. The purpose of initiating such program is to enhance the independent innovative abilities in chip designing and to create the “China’s Chip” with the national brand. Until the first half year of 2007, ZGC Guaranty has guaranteed 30 IC-designing enterprises with accumulative guarantee volume of 134 million yuan.

 

4. “One Stop Guarantee Program for Software Developers”

This program is to provide financing guarantee support to the software developers. The purpose of initiating such program is to further facilitate the expansion of software export scale. In current, the China Export Credit Insurance Company also participates in this program and it collaborates with ZGC Guaranty to provide a joint guarantee to the software developers. Until the first half year of 2007, 25 software developers have been guaranteed with totaling guarantee volume of 88 million yuan.

 

5. “Integrated Trust Plan Guarantees for ZGC Hi-tech Business ”

This program is to provide a guarantee for the institution investors who buy trust product issued by a group of hi-tech enterprises under the collaboration with trust companies. The purpose of initiating such program is to further expand the SMEs’ financing channel. In current, ZGC Guaranty has guaranteed the four terms of trust plans issued by 9 hi-tech enterprises and the total funds raised reach 195 million yuan.

 

6. “Integrated Bond Guarantees for ZGC Hi-tech Business”

ZGC Guaranty organizes the hi-tech enterprises to apply for issuing the integrated SMEs’ bond and provide the guarantee for this bond. The important meanings of initiating this guarantee program are: 1) extending new financing channel for hi-tech SMEs; 2) integrating hi-tech SMEs to jointly issue bond is a pioneering work in the domestic financial market; 3) making the ZGC Science Park more popular by openly issuing bond. Recently, the Bond of ZGC Hi-tech Business which integrates 7 hi-tech enterprises with totaling value of 370 million yuan has been approved by the government authorities related and the bond issuing work is in the progress.