Coronavirus - Government measures in key jurisdictions - Flipbook - Page 26
China
Contributor: JunHe LLP
1
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
2
Employment
Che Hu | cheh@junhe.com | +86 10 8553 7662
Janet Hui | xurr@junhe.com | +86 10 8519 1280
•
In February, a government policy is announced to strengthen financial support
to enterprises. The central government will subsidize the interest payment of key
enterprises engaged in epidemic containment.
•
Financial institutions are asked to refrain from arbitrary withdrawing, cutting or delaying
loans that are issued to severely affected industries, (e.g., wholesale and retail) and
enterprises that are otherwise performing well but are under temporary difficulties due
to the epidemic, and small and micro enterprises in particular.
•
For enterprises that cannot repay loans on time due to severe impact by the epidemic,
loans can be extended or renewed. Meanwhile, measures are taken to lower lending
rates and increase unsecured loans and medium and long-term loans to help
enterprises handle the impact of the epidemic.
•
The Standing Committee of the State Council on February 18, 2020 adopted national
policies to reduce the financial impact of the epidemic on employers as well as to
help stabilize employment. Among the policies are the reduction of employer social
insurance contributions and the delay of housing fund contributions. The policies
have gradually been implemented by national and local notices and policies.
What financial
support is the
government
providing to
•
businesses and
to individuals on
employment issues?
On February 20, 2020, the Ministry of Human Resources and Social Security, together
with the Ministry of Finance and the General Administration of Taxation announced
the following:
– From February 2020, provinces may exempt small and medium-sized enterprises
for up to five months from paying the employer portion of contributions for pension,
unemployment, and occupational injury insurance.
– Provinces may reduce by 50% the employer contributions for pension, unemployment,
and occupational injury insurance for large enterprises for up to three months.
– Hubei province may exempt all employers from paying the employer contributions
for pension, unemployment, and occupational injury insurance for up to five months.
– All employers that suffer serious difficulties in production and operation due to the
outbreak may apply for deferred payment of contributions for all five types of social
insurance for up to six months. Approved employers would not be liable for late
payment fees.
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26
Insolvency
•
Further employment policies issued relating COVID-19 epidemic.
•
During the COVID-19 outbreak, courts have allowed enterprises in bankruptcy
proceedings to take measures such as resumption of production and operation or
disposal of assets related to epidemic prevention and control, which has contributed
to fighting the epidemic as well as increasing the creditors’ debt repayment ratio.
Has the
government made
any changes
•
to insolvency
legislation?
For additional information on measures taken related to enterprises in bankruptcy
proceedings during the COVID-19 epidemic in Chinese, please click here.
Government measures in key jurisdictions
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