China reiterates financial support for small firms

0 Comment(s)Print E-mail Xinhua, August 23, 2018
Adjust font size:

China will make more efforts to tackle the financing difficulties of small and micro-sized businesses as part of a broader campaign to bolster the real economy.

An executive meeting of the State Council chaired by Premier Li Keqiang on Wednesday called for effective implementation of government policies designed to facilitate easier and less costly capital-raising for small and micro-sized firms, eyeing a supportive financial sector to help ensure stable employment and strong business activity.

"China will maintain a prudent monetary policy, rather than resort to a deluge of strong stimulus policies," according to a statement released after the meeting.

Financial institutions are encouraged to increase loans to money-hungry small businesses. Microlending will be linked to performance appraisal of lenders, and the banking regulator will be more tolerant of moderate increases in loan-to-deposit ratios.

Lenders should shorten approval procedures for loans and have more long-term lending agreements, as well as make reasonable lending terms and ways of repayment.

High-yield and private placement bonds and asset-backed securities will be supported. Loans will be tax deductible for small firms.

While encouraging microlending, the document also stressed risk prevention and plans to set up a special regulatory gauge for loans to small and micro-sized businesses. 

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter