Pan Gongsheng: The intensity of financial support for the real economy cannot be simply measured by credit growth.

On September 16, Qiushi published a signed article by Pan Gongsheng, Governor of the People's Bank of China, titled "Deeply Understanding the Transformation of China's Financial Structure and Enhancing the Adaptability of Financial Services to the Real Economy." The article points out that current technological innovation activities are complex and diverse, and are better suited to a diversified financing structure. Technology-based enterprises generally go through different stages such as the seed stage, startup stage, growth stage, and maturity stage, and the risk characteristics and financial needs at each stage differ greatly, requiring a rich and varied financial market and financial ecosystem. In the early stages of growth, technology-based enterprises are mainly engaged in preliminary research and development, with uncertain commercial prospects, and private equity and venture capital are very important providers of funds. In the middle and later stages, as business models gradually mature, financing can be obtained through multiple channels such as bank loans, bonds, and equity. Financial markets have advantages in providing financing for frontier technology and high-risk, high-return innovative industries, bringing about benign substitution and diversion of loans. This change will also become the norm, and the intensity of financial support for the real economy cannot simply be measured by credit growth.