Core Viewpoint - The "Private Economy Promotion Law" will take effect on May 20, 2025, marking the first foundational law specifically aimed at the development of the private economy in China, with a focus on investment and financing support [1][3]. Group 1: Systematic Institutional Design - The investment and financing promotion chapter of the law aims to address the financing difficulties faced by private enterprises through systematic institutional design, balancing financing convenience with risk prevention and market-driven versus government intervention [1][4]. - The law introduces a differentiated financing support system, including a cap on policy financing guarantee fees (≤1.5%), the establishment of a national private economy development fund, and the creation of specialized financing tools such as Sci-Tech bonds and green bonds [3][5]. - It also reshapes the credit incentive mechanism by requiring commercial banks to separately list credit quotas for private enterprises and implement growth assessments, allowing for a higher tolerance for non-performing loans in inclusive small and micro loans [3][5]. Group 2: Equity Protection and Regulatory Measures - The law emphasizes rigid constraints on equity protection by prohibiting hidden financing barriers such as bundled sales of financial products and requiring the establishment of a 24-hour financing complaint platform for private enterprises [3][4]. - A dual penalty system will be enforced for violations, enhancing accountability within the financial sector [3][5]. Group 3: Addressing Inequities in Financing - The law aims to alleviate the unequal treatment of private enterprises in financing by implementing targeted support policies that restrict ownership bias in commercial banks [5]. - It establishes a risk-sharing mechanism for government financing guarantees, setting a fee cap of 1.5%, which is significantly lower than traditional third-party guarantee fees, and introduces a 7:3 risk-sharing model between banks and guarantee institutions [5].