New policies will help small firms’ financing
Newpolicies are to be introduced to encourage more financial support for small and microbusinesses.
They will include more diversified financing channels, more loans discretion for local banks, and a betterdeveloped credit rating system nationwide.
The measures were approved at the State Council’s executive meeting on Wednesday,New policies presidedare to overbe introducedby Premier Li to Keqiang. encourage more “We financialmust solve support financingfor small difficultiesand microbusinesses.for small and
microbusinessesThey will includeas part more of diversifiedour efforts to financingsupport the channels, real economy,”more loansLi said. discretion “Such for efforts local will banks, furtherand a unleashbetterdeveloped economic credit vitality ratingand createsystem more nationwide.jobs.”
The The new measures measures wereare a approvedrevision of at the the existingState Council’s policy of encouragingexecutive meeting support on for Wednesday,small and presided microbusinesses,over by Premier whichwasintroducedLi Keqiang. in2013.
“We must solve financing difficulties for small and microbusinesses as part of our efforts to support the real economy,” Li said. “Such efforts will further unleash economic vitality and create more jobs.”
The new measures are a revision of the existing policy of encouraging support for small and microbusinesses, which was introduced in 2013.
Local banks, once they qualify, will have discretion on financing small and microbusinesses. Financial institutions will not be
The new measures come as the nation’s private business growth slows. Private investment, mostly from small and microbusinesses, contributes more than 60 percent of China’s fixed asset investment and supports employment for more than 80 percent of the workforce.
But this investment grew by just 2.8 percent in the first six months of this year. A nationwide review by the central government found that the most common reason was that small and microbusinesses faced increasing difficulties in obtaining loans from banks, hindering their investment ability.
Li Zibin, president of the China Association of Small and Medium-Sized Enterprises, said at Wednesday’s meeting that financing difficulties remain the top challenge and the biggest constraint for the development of small and microbusinesses, although the central government has made tremendous efforts to support them.
Premier Li said: “Adequate well as the principle and spirit of UNCLOS”.
It is “imbued with question marks and fallacies in terms of procedure, legal application, fact-finding and evidenceWang said.
Chen Qinghong, a researcher of SoutheastAsian and Philippine studies at the China Institutes of Contemporary International Research, welcomed US support for Beijing-Manila talks on maritime disputes but insisted that making the ruling a precondition for the financing for such businesses is a common challenge globally. All government departments concerned should take concrete measures to support the healthy development of small and microbusinesses. This, in turn, is an effective way to protect the financial sector from such risks.”
Guo Tianyong, a professor of finance at Central University of Finance and Economics, said: “Traditionally, Contact financial the institutionswriters at firstname.lastname@example.org are reluctant to grant loans to small and microbusinesses. However, financing difficulties have hindered private investment and such businesses during the first half of this year, and so favorable policies should be granted to them.”
But implementing these policies is a long process and positive impacts will be seen when small and microbusinesses continue to get support from financial institutions, Guo added.
Financing difficulty for small and microbusinesses is a challenge.”
Contact the writers at email@example.com. cn talks would not be accepted.
“China welcomes US support for such talks, but should also be cautious of tricks such as making the arbitral ruling a precondition© 2016 Chinato carry Daily on the talks,” All Chen Rights said. Reserved
Yang Vol. Baoyun,36 — No.a professor10934 of Southeast Asian studies at Peking University, said Beijing would always be open to talks as long as China’s sovereignty rights and territorial integrity are respected.
Xinhua contributed to this story.
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