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Table 2.8 Domestic Practice of Providing Guarantee with Public Fund
Business tools
Jinan Export The fund is totally funded by the municipal treasury and operated in accordance
Guarantee with the principle of being deposited in a special account, subjected to uniform
Fund management, released as per certificates, operated in a closed-end way, settled case
by case, used without compensation and recovered in its entirety. In the four years
of its founding, the fund has accumulatively provided guarantee for 497 loans in
relation to 200-plus export enterprises, with the amount of guarantee amounting to
RMB 318 million.
Beijing SMEs Apart from the pro rata, general, joint, cede, and double guarantee, the company
Credits has presented the new business trust plan and the business start-up loan, providing
Re-guarantee short-term finance for small enterprises in the early stage of their growth. According
Co., Ltd to the amount of financing, the products in favour of small enterprises are divided
into two types, namely, the ‘authorized guarantee as gift and the ‘loans released upon
guarantee’. The line of the credit under the ‘authorized guarantee as gift’ is RMB 1
million, which is to be examined and approved by the Bank of Communications. After
examination and approval in batch, the re-guarantee company will provide guarantee
of joint and several liability at a certain proportion of the amount of the credit. The
line of the credit under the ‘loans released upon guarantee’ is RMB 1–5 million,
which is to be guaranteed with joint and several liability by a cooperative guarantor
(which shall be determined jointly by the re-guarantee company and the bank) in the
first place and re-guaranteed by the re-guarantee company at a certain proportion of
the amount of the credit in the second place and examined and approved by the bank
via the fast track in the end.
Special Green Funds for Local Governments
The practice of the local governments jointly establishing funds with
the development financial institutions and investment companies
to promote infrastructure construction for low carbon cities and
development of low carbon industries is already present. At the same
time, there are an increasing number of cases in which social capital
takes the initiative to launch low carbon-related private equity funds,
such as Zheshang Nuohai Low Carbon Fund. Following this trend,
the local governments can refer to the model of the governmental
venture capital investment direction fund to establish special green
direction funds, with the goal of guiding more social capital into
the green, low carbon domain. As a parent fund, the green direction
fund is committed to supporting development of the venture capital
investment enterprises in favour of clean technologies and making
contributions to the low carbon private equity funds. Like the
governmental direction funds, the green direction fund can subscribe
shares, provide guarantee for financing, make follow-up investment,
provide guarantee for investment, offer subsidies for risk taking, etc.,
in its operation.
100 Low Carbon Development in China and India
Business tools
Jinan Export The fund is totally funded by the municipal treasury and operated in accordance
Guarantee with the principle of being deposited in a special account, subjected to uniform
Fund management, released as per certificates, operated in a closed-end way, settled case
by case, used without compensation and recovered in its entirety. In the four years
of its founding, the fund has accumulatively provided guarantee for 497 loans in
relation to 200-plus export enterprises, with the amount of guarantee amounting to
RMB 318 million.
Beijing SMEs Apart from the pro rata, general, joint, cede, and double guarantee, the company
Credits has presented the new business trust plan and the business start-up loan, providing
Re-guarantee short-term finance for small enterprises in the early stage of their growth. According
Co., Ltd to the amount of financing, the products in favour of small enterprises are divided
into two types, namely, the ‘authorized guarantee as gift and the ‘loans released upon
guarantee’. The line of the credit under the ‘authorized guarantee as gift’ is RMB 1
million, which is to be examined and approved by the Bank of Communications. After
examination and approval in batch, the re-guarantee company will provide guarantee
of joint and several liability at a certain proportion of the amount of the credit. The
line of the credit under the ‘loans released upon guarantee’ is RMB 1–5 million,
which is to be guaranteed with joint and several liability by a cooperative guarantor
(which shall be determined jointly by the re-guarantee company and the bank) in the
first place and re-guaranteed by the re-guarantee company at a certain proportion of
the amount of the credit in the second place and examined and approved by the bank
via the fast track in the end.
Special Green Funds for Local Governments
The practice of the local governments jointly establishing funds with
the development financial institutions and investment companies
to promote infrastructure construction for low carbon cities and
development of low carbon industries is already present. At the same
time, there are an increasing number of cases in which social capital
takes the initiative to launch low carbon-related private equity funds,
such as Zheshang Nuohai Low Carbon Fund. Following this trend,
the local governments can refer to the model of the governmental
venture capital investment direction fund to establish special green
direction funds, with the goal of guiding more social capital into
the green, low carbon domain. As a parent fund, the green direction
fund is committed to supporting development of the venture capital
investment enterprises in favour of clean technologies and making
contributions to the low carbon private equity funds. Like the
governmental direction funds, the green direction fund can subscribe
shares, provide guarantee for financing, make follow-up investment,
provide guarantee for investment, offer subsidies for risk taking, etc.,
in its operation.
100 Low Carbon Development in China and India
