Financial aid boosts progress in Ice and Snow economic sector
Financial support plays a vital role in advancing the development of China's ice and snow economy, complemented by essential multi-stakeholder collaboration that includes government policies, financial institutions, and technology firms. The future of this sector hinges on the effective use of technology to reduce risks and the creation of sustainable financial frameworks.
TroibNews 
Editor's note: The article, authored by Liu Qiang, a research fellow at the Academy of Financial Research, School of Economics of Zhejiang University of China, reflects the author's opinions and does not necessarily represent the views of CN.
The evolution of the "Two Mountains" theory—from “lucid waters and lush mountains are invaluable assets” to “snow and ice are also valuable assets”—provides a significant framework for developing China's ice and snow economy.
This emerging industry is positioning itself as a pivotal force for high-quality development and a new opportunity for opening up in Northeast China. However, the sector faces several practical challenges, including financing issues and elevated operational costs.
In light of these challenges, the financial sector must innovate service models that align with the specific needs of the ice and snow economy while enhancing monetary support to facilitate its growth.
**Interest Subsidies for Loans: Targeted Support to Reduce Financial Costs**
Loan interest subsidies can be designed strategically to meet the distinct requirements of ice and snow enterprises. For example, priority could be given to areas such as ski resort construction and R&D in ice and snow equipment. Implementing these measures through government-backed interest subsidy policies could attract more private investment into the ice and snow industry.
With state-supported interest subsidies, financial institutions might be more inclined to extend loans to ice and snow enterprises, fostering a positive cycle of “government guidance + market participation.” It is crucial to note that financing costs continue to pose significant barriers for expanding ice and snow businesses. By relieving interest burdens, businesses could redirect savings toward technology R&D, market expansion, and other initiatives to boost competitiveness.
**Policy Guarantees: Resolve Financing Challenges**
Many startups in the ice and snow sector find it challenging to secure bank loans due to inadequate collateral or limited credit histories. In such situations, policy-backed guarantees could offer vital credit enhancement, effectively bridging the trust gap between financial institutions and these enterprises.
These guarantees would also minimize risk exposure for banks, encouraging them to relax lending criteria for ice and snow businesses. Additionally, policy guarantee institutions could serve as intermediaries, facilitating dialogue among stakeholders and promoting tailored financial solutions. Ultimately, these strategies would help startups navigate initial financing challenges and support sustainable industry growth.
**Risk Compensation: Building a Sustainable Ecosystem**
The ice and snow economy is subject to cyclical and seasonal risks that introduce investment uncertainties. To mitigate this, establishing risk compensation funds would enable governments and financial institutions to share operational risks, easing lenders’ apprehensions about market volatility.
This risk-sharing approach could stimulate financial innovation by motivating institutions to create customized financial products. Potential offerings could include long-term loans specifically for ski resort infrastructure development or specialized insurance solutions for weather-dependent activities.
Beyond addressing immediate financial barriers, the risk compensation framework lays the groundwork for sustainable industrial growth. A reliable financial support structure allows ice and snow enterprises to focus on expansion and technology upgrades while maintaining resilience against seasonal variations.
**Fintech Empowerment: Combining Industrial Characteristics**
Advances in digital payment systems and inclusive financial services present opportunities to enhance consumer engagement in ice and snow activities. For practical implementation, enterprise groups could partner with ski resorts, hospitality providers, and equipment rental services to establish integrated payment platforms using smart aggregated payment systems.
Financial institutions can currently develop bespoke installment options—like ski pass payment plans or equipment financing solutions—by analyzing transactional data to create user credit profiles.
Given the climate-sensitive nature of snow sports, insurance providers might improve risk management through the integration of meteorological satellite data and real-time snow quality monitoring. This data convergence could lead to dynamic weather index insurance products that adjust coverage based on environmental changes.
**Multi-stakeholder Collaboration: Establishing a Comprehensive Support System**
Support from the financial sector for the ice and snow economy requires comprehensive strategies rather than piecemeal approaches. Governments should create policy frameworks that offer fiscal incentives and infrastructure investments while simultaneously encouraging private capital involvement through public-private partnerships.
Furthermore, financial institutions must enhance cross-sector collaboration with technology companies to jointly develop specialized financial solutions. For instance, tech firms could provide big data analytics to help banks assess creditworthiness in the snow tourism sector, whereas financial institutions could contribute risk management strategies to improve product design. This multi-faceted approach—incorporating risk mitigation strategies, technological advancements, and collaborative efforts—will pave the way for long-term, stable growth in the ice and snow industry.
Moving forward, the successful development of the ice and snow economy through financial support will hinge on leveraging technological advancements to reduce financing risks linked to seasonality and climate-related factors while establishing structured and sustainable financial mechanisms to secure the industry's growth trajectory.
Navid Kalantari for TROIB News
The evolution of the "Two Mountains" theory—from “lucid waters and lush mountains are invaluable assets” to “snow and ice are also valuable assets”—provides a significant framework for developing China's ice and snow economy.
This emerging industry is positioning itself as a pivotal force for high-quality development and a new opportunity for opening up in Northeast China. However, the sector faces several practical challenges, including financing issues and elevated operational costs.
In light of these challenges, the financial sector must innovate service models that align with the specific needs of the ice and snow economy while enhancing monetary support to facilitate its growth.
**Interest Subsidies for Loans: Targeted Support to Reduce Financial Costs**
Loan interest subsidies can be designed strategically to meet the distinct requirements of ice and snow enterprises. For example, priority could be given to areas such as ski resort construction and R&D in ice and snow equipment. Implementing these measures through government-backed interest subsidy policies could attract more private investment into the ice and snow industry.
With state-supported interest subsidies, financial institutions might be more inclined to extend loans to ice and snow enterprises, fostering a positive cycle of “government guidance + market participation.” It is crucial to note that financing costs continue to pose significant barriers for expanding ice and snow businesses. By relieving interest burdens, businesses could redirect savings toward technology R&D, market expansion, and other initiatives to boost competitiveness.
**Policy Guarantees: Resolve Financing Challenges**
Many startups in the ice and snow sector find it challenging to secure bank loans due to inadequate collateral or limited credit histories. In such situations, policy-backed guarantees could offer vital credit enhancement, effectively bridging the trust gap between financial institutions and these enterprises.
These guarantees would also minimize risk exposure for banks, encouraging them to relax lending criteria for ice and snow businesses. Additionally, policy guarantee institutions could serve as intermediaries, facilitating dialogue among stakeholders and promoting tailored financial solutions. Ultimately, these strategies would help startups navigate initial financing challenges and support sustainable industry growth.
**Risk Compensation: Building a Sustainable Ecosystem**
The ice and snow economy is subject to cyclical and seasonal risks that introduce investment uncertainties. To mitigate this, establishing risk compensation funds would enable governments and financial institutions to share operational risks, easing lenders’ apprehensions about market volatility.
This risk-sharing approach could stimulate financial innovation by motivating institutions to create customized financial products. Potential offerings could include long-term loans specifically for ski resort infrastructure development or specialized insurance solutions for weather-dependent activities.
Beyond addressing immediate financial barriers, the risk compensation framework lays the groundwork for sustainable industrial growth. A reliable financial support structure allows ice and snow enterprises to focus on expansion and technology upgrades while maintaining resilience against seasonal variations.
**Fintech Empowerment: Combining Industrial Characteristics**
Advances in digital payment systems and inclusive financial services present opportunities to enhance consumer engagement in ice and snow activities. For practical implementation, enterprise groups could partner with ski resorts, hospitality providers, and equipment rental services to establish integrated payment platforms using smart aggregated payment systems.
Financial institutions can currently develop bespoke installment options—like ski pass payment plans or equipment financing solutions—by analyzing transactional data to create user credit profiles.
Given the climate-sensitive nature of snow sports, insurance providers might improve risk management through the integration of meteorological satellite data and real-time snow quality monitoring. This data convergence could lead to dynamic weather index insurance products that adjust coverage based on environmental changes.
**Multi-stakeholder Collaboration: Establishing a Comprehensive Support System**
Support from the financial sector for the ice and snow economy requires comprehensive strategies rather than piecemeal approaches. Governments should create policy frameworks that offer fiscal incentives and infrastructure investments while simultaneously encouraging private capital involvement through public-private partnerships.
Furthermore, financial institutions must enhance cross-sector collaboration with technology companies to jointly develop specialized financial solutions. For instance, tech firms could provide big data analytics to help banks assess creditworthiness in the snow tourism sector, whereas financial institutions could contribute risk management strategies to improve product design. This multi-faceted approach—incorporating risk mitigation strategies, technological advancements, and collaborative efforts—will pave the way for long-term, stable growth in the ice and snow industry.
Moving forward, the successful development of the ice and snow economy through financial support will hinge on leveraging technological advancements to reduce financing risks linked to seasonality and climate-related factors while establishing structured and sustainable financial mechanisms to secure the industry's growth trajectory.
Navid Kalantari for TROIB News
