--- SEARCH ---
Film in China
War on Poverty
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service
China Calendar
Trade & Foreign Investment

Hot Links
China Development Gateway
Chinese Embassies

Regulator Urges More Financing for SMEs

China's top banking regulator has encouraged commercial banks to provide financing to smaller companies, which have historically faced great difficulties in obtaining bank loans.

"The fundraising problem has become a major bottleneck that limits the development of small companies and this problem, if not resolved for the long term, will hurt the harmonious and sustainable development of China's economy," said Liu Mingkang, chairman of the China Banking Regulatory Commission.

In the next few years, more commercial banks are expected to shift their focus to small companies, which have greater potential for business growth, Liu said.

The banking commission would support such strategic changes, he added. It planned to review existing lending rules and would revise "unreasonable" terms that prevented small companies from getting bank loans, Liu said.

Liu's remarks were echoed by Wu Xiaoling, vice governor of the People's Bank of China, who said that small and medium-sized enterprises (SMEs) would be a new source of profit growth for commercial banks.

Wu said with the development of China's capital markets, more and more large-sized companies would choose to raise money in the stock or bond markets, but SMEs would continue to rely heavily on bank loans.

However, the central bank would not go so far as to set up a policy bank to specialize in providing loans to SMEs, said Wu.

(Shenzhen Daily April 19, 2005)

China's Burgeoning Private Sector - Top Ten News Stories of 2004
Gov't Urged to Help SMEs in SW China
Eased Rules Open up SME Export Trade
Finding a Better Growth Model
Print This Page
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688