Financial Empowerment of Anqing Chemical Industry's "Three Modernizations" Transformation

Author | Cao Jiping “People’s Bank of China Anqing Branch”

Article | “China Finance” Issue 4, 2026

The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China has systematically outlined the development blueprint for the “14th Five-Year Plan” period, clarifying the goals of industrial transformation and upgrading through “intelligent, green, and integrated” development. This provides clear guidance for financial empowerment of traditional industries’ transformation and upgrading. Guided by the spirit of the plenary, the author conducted research on the financial support for the urgently needed transformation of Anqing’s chemical industry.

Urgency of Transformation in Anqing’s Chemical Industry

Anqing, located along the Yangtze River, is one of Anhui Province’s three new chemical bases and an important petrochemical industry cluster nationwide, exhibiting typical “factory-city integration” development features. The suburban districts host two specialized chemical parks: the High-tech Zone and the Petrochemical Area, forming a complete industrial chain from refining and basic chemical raw materials to new chemical materials, electronic chemicals, and pharmaceutical intermediates. Currently, there are over 794 chemical and hazardous chemical enterprises in the city, including 344 involved in “two key points and one major” (key regulated hazardous chemical processes, key regulated hazardous chemicals, major hazardous sources of chemicals). The industry employs tens of thousands of workers. In 2024, the chemical and new materials industries achieved approximately 113.7 billion yuan in revenue, demonstrating a solid industrial foundation and strong growth momentum.

However, under the “dual carbon” goals, green transformation of Anqing’s chemical industry is imminent. Promoting green transformation is a bottom-line requirement for implementing the Yangtze River protection and achieving sustainable development. The central ecological and environmental protection inspections’ relocation tasks for riverbank enterprises are external pressures pushing the industry toward higher, greener forms, aligning with modern demands for harmonious coexistence between humans and nature in high-quality economic development.

Green transformation demands higher standards for energy consumption control and emission reduction accuracy, making the improvement of industry quality and efficiency an inevitable path for high-quality development. On one hand, breaking through the bottleneck of industrial intelligent upgrading is essential—driving digital and intelligent transformation of the chemical industry to enhance overall productivity, which is core to strengthening the resilience and competitiveness of the real economy. On the other hand, promoting integrated development—fostering cross-industry integration with new materials, pharmaceuticals, and other sectors—aims to elevate the value chain to high-end levels, directly serving the construction of a modern industrial system.

Paths for Anqing’s Chemical Industry Transformation and Financial Empowerment Entry Points

Anqing’s chemical industry transformation exhibits both “special” and “general” characteristics, a “dual attribute.” Regarding the “special” aspect, the entire industry must complete rectification of ecological and environmental issues identified by central inspections within a set timeframe, including relocating 24 enterprises with 35 projects along a one-kilometer stretch of the Yangtze River. This relocation is large-scale, involving many enterprises with widespread distribution, but must be completed on schedule. Concerning the “general” aspect, the transformation must follow industry-wide principles. Referencing standards from the China Petroleum and Chemical Industry Federation, transformation requires systematic promotion of industrial structure optimization, technological innovation, energy restructuring, green manufacturing systems, and urban renewal. This means that during relocation, high standards are needed for new industrial parks like Shankou, alongside simultaneous upgrades in industry intelligence, greening, and integration, as well as ecological restoration of original sites and surrounding environments. This is a systematic project requiring overall coordination and joint efforts.

The “dual attribute” features suggest that Anqing’s chemical industry should adopt a “relocation—transformation—upgrade” path, which generates diverse and complex financial needs. On one hand, financial institutions should provide comprehensive financing solutions covering the entire “relocation—transformation—upgrade” process, not just simple relocation loans. This requires deep understanding of the complexity of industrial transformation, offering full-cycle financial support from planning and relocation to upgrading, driving industry re-creation and cluster development during spatial shifts. On the other hand, specific projects demand precise matching of differentiated needs: supporting green finance for park circular transformation and new energy applications (“green” needs), driving relocation and decarbonization of high-carbon assets (“brown” needs), supporting technological R&D and upgrading into new materials and electronic chemicals (“tech innovation” needs), providing inclusive finance for small and medium enterprises in relocation and technological upgrades, leveraging digital finance to improve project identification, carbon accounting, and information disclosure, and ensuring social stability through pension finance for affected workers and re-employment support.

Structural Conflicts Between Financial Supply and Industry Transformation Needs

Although the path is clear, transformation is challenging. Research shows that there is a structural contradiction between current financial supply and the “relocation—transformation—upgrade” demands of the chemical industry in Anqing.

First, there is insufficient industry transformation momentum. On one side, the lack of obvious economic benefits leads enterprises to be reluctant to transform. Currently, the chemical industry is not included in the national carbon trading market, so emission reductions do not yield expected economic returns. Small and medium enterprises, with low added value and thin profit margins, mainly focus on cost reduction and efficiency, with little motivation for emission reduction. On the other side, large initial investments hinder transformation—requiring huge capital for technology and equipment upgrades, R&D, and talent. Financing for transformation lacks advantages in interest rates and operational convenience, and involves costs for specialized teams and third-party certification, increasing overall transformation costs. Coupled with the industry’s current downturn, enterprises are less proactive about transformation.

Second, financial institutions face multiple constraints limiting their service capacity. They encounter policy, technological, and capability restrictions. At the policy level, national standards for chemical industry transformation finance are still in consultation, lacking clear criteria for identifying and defining transformation activities, which reduces financing efficiency. In terms of human resources, financing for “three transformations” involves multiple fields—industry policy, environmental technology, financial innovation—requiring multidisciplinary professionals, of which there is a shortage, affecting professional judgment on green and low-carbon technologies, emission reduction effects, and investment returns. Regarding risk assessment and management, many financial institutions lack effective tools and models to quantify environmental and climate risks, increasing difficulty in risk control.

Finally, “information silos” and insufficient collaboration severely restrict service efficiency. Many transformation enterprises, especially SMEs, have incomplete financial statements and lack clear, actionable transformation strategies and systematic carbon data records, making it hard for financial institutions to assess true enterprise conditions and potential. Even when key data on carbon performance and progress are provided, they are often managed by different departments, with no established cross-departmental coordination or disclosure and verification mechanisms, preventing comprehensive evaluation. At the macro level, disconnects among industry policies, environmental policies, and financial policies, along with weak risk-sharing mechanisms and limited fiscal support, hinder effective financial backing for transformation projects, especially for high-carbon stock enterprises.

Recommendations for Financial Ecosystem Empowering Chemical Industry Transformation

Supporting the “three transformations” of the chemical industry through finance is a complex systemic project. It requires systemic thinking to build a financial ecosystem led by shared concepts, policy coordination, efficient actions, and smooth information flow—serving the strategic goal of “building a modern industrial system and consolidating the foundation of the real economy.”

• Establish shared concepts as the ideological foundation for financial services

First, recognize “transformation finance as a systemic project.” Governments, financial institutions, and enterprises must fully understand that industry transformation is not just technological upgrades but a profound change in development modes. It is recommended to establish a “Transformation Finance Leadership Group” with regular discussion mechanisms to reach consensus on key issues like standards, risk perception, and responsibilities.

• Build a “classified, targeted support” framework

Drawing on international practices, categorize Anqing’s chemical enterprises into five types based on carbon emission intensity: deep brown, medium brown, light brown, light green, and deep green, and develop differentiated financial support strategies accordingly. Prepare an “Anqing Chemical Industry Transformation Guide” to clarify transformation paths and financial needs for each category, providing a basis for precise policy implementation.

• Cultivate a “full lifecycle management” service concept

Guide financial institutions to establish a comprehensive financial service system covering the entire transformation process, especially for relocation and renovation projects, providing full-process support from planning, construction, to operation management.

• Ensure policy coordination as a solid foundation for financial support

In standards, learn from advanced regions, actively pilot standards from the China Petroleum and Chemical Industry Federation, clarifying activity definitions, technical requirements, and disclosure norms. For example, referencing Tianjin’s experience, establish a “three-in-one” standard framework including activity catalog, technical indicators, and disclosure templates, linked with carbon accounting and environmental disclosure systems.

In policy tools, leverage fiscal funds to guide transformation. Set up a transformation finance development fund, using interest subsidies, risk compensation, guarantees, and third-party certification subsidies to attract social capital. Incorporate transformation finance into the MPA evaluation system and provide policy incentives through central bank re-lending.

In regulatory coordination, establish a joint supervision mechanism in Anqing involving local banks, environmental, and industry departments, standardize supervision, share information, and implement transparent oversight. For enterprises meeting transformation standards, streamline environmental assessments and safety permits, forming a policy synergy.

• Ensure efficient actions to implement financial tools

Financial institutions should innovate product and service systems. Develop “combo finance” models for complex projects like relocation and technological upgrades, combining “tech + transformation” and “inclusive + digital” loans. Create transformation-linked products tied to key performance indicators like emissions and energy use, with incentive mechanisms such as interest rate adjustments. Explore establishing transformation funds and M&A funds to support industry restructuring and upgrading.

Enterprises should enhance their transformation capacity. Key enterprises need to develop feasible transformation plans with clear goals, steps, and funding needs. SMEs can seek third-party services for planning and financing schemes. Also, improve environmental information disclosure, reporting key data like emissions and energy consumption to support financial evaluation.

• Facilitate information flow as a key link for financial services

Build efficient “information infrastructure” and “capacity-building platforms” to ensure a healthy ecosystem. On existing government platforms, establish an “Anqing Transformation Finance Service Zone,” integrating project, fund, and policy databases, and collecting data on carbon accounting, transformation plans, disclosure, and financing. Achieve mapping of “industry chain—funding chain—innovation chain.” Engage third-party agencies for evaluation and certification. Strengthen talent development through training and site visits to enhance professional skills.■

(Editor | Ji Wei)

Like, share, recommend, and arrange accordingly?