The Central Financial Work Conference of China has emphatically recognized the critical role that the financial sector must play in endorsing technological innovation and advanced manufacturingThis directive resonates with the key trends currently shaping the country's economy, emphasizing the importance of aligning financial support with initiatives that foster high-quality industrial developmentThe objective is to steer financial institutions, particularly banks and insurance companies, towards enhancing their support for the manufacturing sector's growth, thereby facilitating the establishment of a robust manufacturing powerhouse and the promotion of a new wave of industrialization in China.

In the era of rapid economic transformation, the financial backing of new industrialization is broadly regarded as both an indispensable choice for the times and an inherent demand from the market

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As pointed out by Ye Huaibin, a researcher at the Bank of China Research Institute, new industrialization is crucial for advancing national strength and achieving the rejuvenation of the Chinese nationFinancial institutions have an obligation to adapt and respond to this critical transformation, as emerging industries—central to this new wave—represent significant clientele for these institutions, providing a powerful impetus for their sustained growth.

Officials from the Ministry of Industry and Information Technology have stressed the importance of maintaining a stringent focus on high-quality development, working tirelessly towards the goals set forth by new industrializationTheir vision encapsulates the integration of technological innovation with industrial enhancement, aimed at establishing a modernized industrial system anchored in advanced manufacturingNotably, this involves fostering sectors that are high-end, intelligent, and environmentally friendly, which are paramount to achieving both national strategy and environmental sustainability.

At present, China's high-tech manufacturing sector and emerging industries have been experiencing rapid growth, reflecting a burgeoning industrial ecosystem

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Data from the first quarter reveals that the added value of high-tech manufacturing surged by 7.5% year-over-year, exhibiting a notable acceleration of 2.6 percentage points from the previous quarterSpecific products within these sectors are also showing remarkable increases; for instance, the production of solar cells grew by an impressive 20.1%, while related products like polysilicon and monocrystalline silicon experienced growth rates exceeding 50%. The markets for new energy vehicles reflected similar trends, with sales and production jumping by 28.2% and 31.8%, respectively, signifying a robust shift towards sustainable transportation solutions.

A significant highlight in the push for industrial development is the financial support for the growth of green and intelligent manufacturingThis represents a pivotal shift associated with the latest wave of technological revolution and industrial transformation

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By emphasizing the promotion of green finance, the government aims to empower carbon reduction initiatives across industrial sectors, reinforce efficient resource utilization, and support the transition to a green energy framework.

The advancements towards the greening of the manufacturing industry have yielded commendable outcomes in recent yearsEvidence can be seen in the enhanced capabilities for providing environmentally friendly productsThe percentage of advanced manufacturing in the overall output has continuously increased, signaling a collective effort to improve the quality and sustainability of productionNotably, the nation has nurtured a total of 5,095 green factories, 371 green industrial parks, and engaged 605 enterprises in green supply chain management, alongside establishing over 500 specialized institutions to support green manufacturing.

Experts assert the necessity for the banking sector to effectively leverage policies aimed at supporting carbon reduction initiatives, thereby channeling significant medium- to long-term financial resources towards industrial green transitions

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Dong Ximiao, Chief Researcher at Zhongan University, emphasized that for financial institutions to provide better support for the manufacturing sector, they need to rectify the fundamental barriers hindering industrial growth, ultimately facilitating the high-quality development of manufacturingMoreover, he indicated that eliminating outdated production capacities, accelerating the exit of "zombie enterprises," and restructuring struggling companies are vital steps in cultivating a roster of high-quality green manufacturing firms.

By the end of March, there was a notable year-on-year increase in loans to high-tech manufacturing, science and technology small and medium-sized enterprises, and inclusive micro-enterprises, showing growth rates of 27.3%, 20.4%, and 20.3%, respectivelyThe refinement and enhancement of financial support directed towards these sectors are now critical focal points for the banking institutions

From a broader system perspective, there is a pressing need to bolster capital market development, which would raise the ratio of direct financingThe recent enhancements in the issuance and refinancing mechanisms for stocks aim to empower companies to mobilize capital from the market effectivelyParticularly for eligible small and medium-sized manufacturing enterprises, there is an emphasis on facilitating listings on platforms like the Sci-Tech Innovation Board, Beijing Stock Exchange, GEM, and the New Third Board.

Ensuring comprehensive risk prevention and fostering a favorable financial market order is essential for steadily improving the quality and efficacy of financial services directed towards the manufacturing sectorFinancial institutions, especially banks and insurance companies, are called to adopt a prudent approach to operations, reinforcing internal compliance and comprehensive risk management