Guiyang State-owned fund provides enterprises with financial support

As of the end of April, the State-owned Guiyang Industrial Development Fund Pool had provided financial support to nearly 260 enterprises, with total loan disbursements exceeding 10 billion yuan ($1.38 billion), effectively boosting the high-quality development of Guiyang City and Gui'an New Area's industrial economy.

The Guiyang Industrial Development Fund Pool, with a scale of 3 billion yuan, was launched by the Guiyang people's municipal government at the end of December 2021. It primarily supports key industrial sectors such as electronic information manufacturing, new energy vehicles, and software information technology services through revolving loans, entrusted loans, guarantees, and more, addressing the funding turnover issues encountered by enterprises in their development.

State-owned Guiyang Industrial Development Holding Guarantee Co is responsible for the management and operation of the Guiyang Industrial Development Fund Pool. To serve enterprises, the company has developed more than 10 innovative financial products, including "order-based loans", leveraging the fund pool. They have cumulatively supported enterprises over 67 times, providing more than 590 million yuan in support.

Guizhou Xiangheng Packaging Co was established in October 2020. It is mainly involved in the production of corrugated cardboard and cartons, supplying well-known companies such as Hisense and Wahaha.

"As a startup, the lack of collateral limited our ability to obtain direct financing from banks, significantly restricting our production and operations. Our output in 2021 was only 44.21 million yuan," said Yang Shixing, the financial manager of Xiangheng Packaging. The company then applied for entrusted loan support from the Guiyang Industrial Development Fund Pool and quickly received the first disbursement.

The fund pool has provided a total of 60 million yuan in financial support to Xiangheng Packaging, which was then able to expand its production, achieving an output value of 156 million yuan in 2022 and exceeding 170 million yuan in 2023.