Forestry industry: A comment on financial development supporting forestry guidance

May 26 afternoon the central bank website announced the People's Bank of China, the guidance opinions of the Ministry of Finance, the CBRC, the CIRC and the Forestry Bureau on the reform of collective forest rights system and the development of financial services in forestry, including six parts: first, fully understand the important significance of the reform of collective forest right system and the development of financial service in forestry　　and second, effectively increase the effective credit investment to forestry development; to guide the diversified funds to support the reform of collective forest rights system and forestry development; Four, actively explore the establishment of forest insurance system; Five, strengthen the information sharing mechanism and the internal control mechanism; Six, actively create favorable financial support for the collective forest rights system reform and Forestry development policy environment. The core of guiding opinion is to establish financial supporting measures to support the development of forestry, request: In the area where the collective forest right system reform has been implemented, the banking financial institutions should actively operate forest mortgage loan, farmers ' small credit loan and farmers ' UNPROFOR loan and other business. Make full use of the policy of fiscal discount, and effectively increase the policy coverage of forestry discount loans, poverty alleviation loans and small guaranteed loans.　　The banking financial institutions should rationally determine the duration of forestry loans according to the economic characteristics of forestry, the duration of forest warrants, the use of funds and the risk conditions, and the longest period of forestry loan can be 10, and the specific period shall be determined by the financial institution and the borrower according to the actual situation. The banking financial institutions shall reasonably determine the interest rate of various forestry loans in accordance with market principles. For forest mortgages which meet the loan conditions, the interest rate should generally be lower than the credit interest rate; For small farmers ' loans, such as micro-credit loans and household loans, the borrowers actually bear the burden of the interest rate not exceeding 1.3 times times the benchmark interest rate of the same term loans as stipulated by the PBC.　　At all levels of finance to increase interest discount, give full play to the local financial funds leverage, and gradually expand the scale of forestry loan discount funds. To encourage qualified forestry industry leading enterprises to issue various types of debt financing instruments through the bond market to raise the funds needed for production and operation.　　Encourage the forest industry to engage in forestry cultivation, forest products processing and business performance, credit good SMEs in accordance with market-oriented principles, the issue of SME collection bonds.　　To explore and establish the mechanism of forest insurance risk decentralization, all the agencies involved in forest insurance should carry out a certain proportion of excess compensation for forest insurance, establish the compensation mechanism and improve the ability of forest insurance against risk. Our view this guidance is for the in-depth implementation of the June 2008 "Central Committee of the State Council on the overall promotion of collective forest rights system Reform" ((2008)10) of the supporting measures, we believe that in order to ensure the smooth completion of the collective forest rights system reform, there may be some supporting policies, such as circulation　　, felling and so on.　　According to the 2005 interim measures for the administration of the central financial funds, the regulations on the management of special financial resources for agriculture and some subsequent revisions, the policy of forestry loans and interest deduction has been implemented, and this policy emphasizes that the difference between them is that it is more clear to provide convenience for small loans;The maximum duration of the loan extension is 10 years (2-3 years ago, 2007 revision is 5 years); It is clear that all levels of finance should be strengthened; (the previous discount see appendix) can get better interest rate discount through forest mortgage.　　The Forestry capital investment is long, the effect is slow, the policy implementation is advantageous to the individual who engages in the forestry production, the enterprise obtains the capital which the production needs, is advantageous to our country woodland management efficiency enhancement, is advantageous to the forestry benign development. Policy implementation, in the short term foresters benefited more.　　Loans and discount policy, we understand that the domestic forestry listed companies are basically already enjoying these concessions, but small farmers in the previous access to loans is difficult, so the guidance of the introduction of these vulnerable forestry operators more favorable, and the enterprise benefit less than foresters. In the long run, the overall improvement of forest management efficiency can improve the value of woodland, from this point of view, there is the possibility of the value increment of woodland in the existing forest companies. A-share we understand the listed companies, we think the benefit of the order for the Yongan Forestry, Yueyang paper, Tatsu Forestry, Fujian South paper, chenming paper, Jilin Forest workers.