Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    PBOC steps ensure credit flow to SMEs

    By Chen Jia | China Daily | Updated: 2020-06-09 07:50
    Share
    Share - WeChat
    Bank and taxation employees visit a camshaft-making company in Huaying, Sichuan province, to better provide financial help the company needed on its work resumption after COVID-19 was brought under control in China. [Photo/QIU HAIYING FOR CHINA DAILY]

    The Chinese central bank's measures to support smaller enterprises will help cushion the downside risks in economic activity by facilitating the flow of credit to market entities and ensuring job security, analysts said.

    The People's Bank of China, the central bank, launched a set of policies last week to shore up financial services for small and micro enterprises. It announced 30 supportive measures, like lower costs and faster growth of credit while encouraging financial institutions to raise more funds from the bond market.

    "We designed the package of policies from a long-term perspective," Pan Gongsheng, vice-governor of the PBOC, said during a news briefing. "Financial institutions should strengthen countercyclical measures and expand credit to secure market entities."

    Pan also warned about a possible worsening of the credit asset quality for the next two years, amid the economic downturn due to the novel coronavirus epidemic.

    Net financing of corporate bonds this year should be 1 trillion yuan (more than the amount in 2019), while financial institutions should target issuing special bonds of at least 300 billion yuan for supporting small and micro companies as part of the overall measures to augment the working capital requirements of financial institutions, the central bank said.

    Zou Lan, head of the financial market department at the PBOC, said that the central bank will also facilitate a mechanism of providing subsidies and rewards for small business loans, and supplement the working capital of government financing guarantee institutions.

    "These measures will help to share loan risks through the cofunding of small and micro companies and encouraging banks to be more proactive in lending," said Zou.

    China was the first major economy in the world to impose quarantine measures to halt the spread of the novel coronavirus, and was the first to resume business activities after effectively controlling the epidemic. The falling global demand will pose new labor market pressures and income losses could weaken the recovery in domestic consumption, said Zhu Haibin, chief China economist with JPMorgan.

    Small and medium-sized enterprises account for 80 percent of the urban employment in China, and they tend to have the most difficulties in obtaining credit during economic downturns. Hence, supporting SMEs is necessary to stabilize the real economy, said Shan Hui, an economist with Goldman Sachs (Asia).

    The central government set an annual target of increasing financial support to keep micro, small, and medium-sized business operations stable. In the Government Work Report, it said it will increase large commercial banks' inclusive financing to micro and small businesses by more than 40 percent this year, along with an expansion in the scope of the government financing guarantee and significant reduction of guarantee fees.

    The authorities also highlighted the need to tighten financial regulation and prevent funds from "simply circulating in the financial sector for the sake of arbitrage", according to the report. "To support market entities, we must ensure that micro, small, and medium-sized businesses have significantly better access to loans and that overall financing costs drop markedly."

    Since June, the rise of benchmark bond yields has indicated that the central bank might increase caution on risks related to financial arbitrage and asset bubbles, as the government has vowed to use financial resources to support the recovery of the real economy and prevent speculation in the financial system.

    The PBOC and the banking, securities and insurance regulators jointly announced last week that SME loans that are scheduled to mature this year would get a repayment extension to March 31, 2021, as long as the borrowers promise to keep employment stable. The monetary authority also established two new policy tools to ensure that credit can be directly channeled to SMEs.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    中文字幕无码精品亚洲资源网久久 | 久久久久久国产精品无码下载| 日韩AV无码精品人妻系列| 欧美视频中文字幕| 国模无码一区二区三区不卡| 精品多人p群无码| 亚洲伦另类中文字幕| 亚洲AV无码成H人在线观看| 亚洲AV无码欧洲AV无码网站| 亚洲日韩欧美国产中文| 亚洲无码高清在线观看| 精品久久无码中文字幕| 最近中文字幕高清字幕在线视频 | 99久久无码一区人妻| 亚洲中文字幕无码久久综合网| 国产中文字幕在线视频| 麻豆国产原创中文AV网站| 丰满熟妇乱又伦在线无码视频| 亚洲性无码一区二区三区 | 亚洲级αV无码毛片久久精品| 欧美麻豆久久久久久中文 | 中文字幕无码毛片免费看| 2022中文字字幕久亚洲| 亚洲中文字幕日本无线码| 精品无码人妻一区二区三区不卡| 日韩人妻无码中文字幕视频| 亚洲精品~无码抽插| 波多野结衣AV无码久久一区| 日日日日做夜夜夜夜无码| 在线亚洲欧美中文精品| 免费看成人AA片无码视频羞羞网| 日本中文字幕免费看| 免费精品久久久久久中文字幕| 久久亚洲2019中文字幕| 高清无码中文字幕在线观看视频| 在线中文字幕一区| 婷婷五月六月激情综合色中文字幕| 最近2018中文字幕在线高清下载 | www.中文字幕| 日本精品自产拍在线观看中文| 日韩人妻无码精品无码中文字幕|