China to unveil new financial reform measures

0 Comment(s)Print E-mail Xinhua, May 28, 2020
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A bank staff member counts 100-yuan banknotes at the Beijing Branch of the Bank of Communication in Beijing, capital of China. [Photo/Xinhua]

China will introduce 11 financial reform measures in the near future, the office of financial stability and development committee under the State Council announced Wednesday.

According to the announcement, an improved incentive and restraint mechanism will be introduced to urge commercial banks to provide financial services to small and micro enterprises more efficiently. Banks will be evaluated in aspects such as credit allocation, implementation of regulatory policies and product and service innovation and are encouraged to provide differential pricing when lending to those enterprises.

Further reform of small and medium-sized banks will be carried out, such as accelerating capital replenishment of these banks, raising funds through multiple channels and combining replenishment of capital with the optimization of corporate governance.

Governmental financing guarantee institutions at all levels are encouraged to support small businesses and farmers in a bid to share risks and help enterprises to resume work and overtake the difficulties.

Efforts will be stepped up to crack down on financial violations.

In addition, measures to regulate the registration of initial public offering of stocks on ChiNext and further open up the credit rating industry, among others, will also be introduced.

Commenting on the announcement, Wen Bin, chief analyst at China Minsheng Bank, said the implementation of the measures will raise the efficiency of the capital market, better protect the rights and interests of investors and maintain financial stability, so as to better support the economic and social recovery and development.

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