A staffer works in a textile factory in Bozhou, East China’s Anhui Province on October 12, 2023. The efficiency of manufacturing and industrial chain coordination is significantly improving, bringing more competitive advantages to enterprises. Photo: cnsphoto

China’s central bank and other seven central government departments on Monday issued a notice on strengthening financial support for the development and growth of the private economy. The 25-measure notice emphasized the need to diversify financing channels for private firms, provide improved financial services, as well as reasonably meet the financial needs of privately-owned real estate developers.

The document highlighted the need to continuously ramp up credit lines to support the development of the private economy, such as increasing the quota for their first-time loans and other loans, actively engaging in all types of financial services to ensure the industrial and supply chain stability, and proactively ensuring seamless funding services for the sector, the notice read.

Banks and other financial institutions are encouraged to meet the financing needs of private enterprises that encounter temporary difficulties but have marketable products, promising projects, and competitive technology in accordance with market-oriented principles, and should not “blindly halt, withdraw or cut off” their loans.

At the same time, more efforts should be made to implement relevant government policies extending financial support for the real estate sector, maintain the stability of key financing channels such as credit lines and bonds, and reasonably meet the financial needs of privately-own property developers.

The notice also emphasizes the need to encourage and guide institutional investors to actively and scientifically allocate private firms bond issues to collect more funds. Private enterprises will be supported through securities financing, mergers and acquisitions and reorganization, in order to support investment needs for private enterprises, while expand the scale of equity financing for high-quality private enterprises.

In terms of industrial structure improvement, the notice emphasizes the need to intensify support for key technological innovations, green and low-carbon development, and the reconstruction of some industrial bases. Additionally, it underscores the importance of increasing support for small and medium-sized enterprises (SMEs) within the private sector.

Global Times