Professor Yang Fuming's advice on the impact of and response to the COVID-19 epidemic was approved by the provincial governor Date: 15 March 2020

author:張欣然/文source:金融貿易學院Time:2020-03-15 10:55:00

In the wake of the COVID-19 epidemic, Professor Yang Fuming, deputy dean of the School of Finance and Trade and deputy of Provincial People's Congress, actively leveraged his professional expertise and submitted a proposal titled Further Mobilize Counter-Cyclical Adjustment Function of Government Financing Guarantee to Alleviate the Financing Plight of Micro, Small and Medium-sized Enterprises under the Impact of Covid-19, as a response to the call of the provincial People's Congress and the Party Committee of WZBC. His proposal was adopted by the Zhejiang People's Congress Information special issue Opinions and Suggestions of the National and Provincial People's Congresses on Epidemic Prevention and Control and Resumption of Work, Production and Schooling(14). It was then forwarded to the Provincial Party Committee and the Provincial Government, and was approved by Yuan Jiajun, the Governor and the Deputy Secretary of the Provincial Party Committee.

Professor Yang Fuming's  proposal pointed out that: the impact of the epidemic hit micro, small and medium-sized enterprises the hardest, mainly because of the direct cost increase in the short term. The first was the explicit cost, including rent (housing or equipment lease), financing costs, and wages; the second is opportunity cost, that is, the opportunity loss caused by the reduction of business income due to the epidemic, which is a hidden cost. The direct impact of the cost increase for these companies is inadequate cash flow, and some companies even run out of cash. It is recommended that the role of government financing guarantee institutions that have been established in various parts of our province be brought into play to effectively alleviate the financing difficulties:

1. Clarify the counter-cyclical adjustment mechanism of government financing guarantee institutions and give play to the role of credit enhancement of policy financing in special periods;

2. Give play to the structural adjustment function of government financing guarantee institutions, and focus on supporting labor-intensive micro, small and medium-sized enterprises that contribute significantly to employment stability;

3. Establish a financial mechanism for government financing guarantee institutions to compensate their increased loss due to the implementation of counter-cyclical adjustments;

4. Develop a due diligence and exemption mechanism for government financing guarantee institutions to carry out counter-cyclical adjustments during the epidemic.

Professor Yang Fuming, as the deputy of the Provincial People's Congress and the chairman of China Democratic National Construction Association WZBC branch, is known to have actively provided suggestions and proposals for the high-quality development of our province in recent years. Many of his proposals have been highly recognized and approved by provincial and municipal government officials.