New poli­cies will help small firms’ fi­nanc­ing

China Daily (Canada) - - TOP NEWS - AndHUYONGQI By ZHANG YUE and HU YONGQI ByWANGXU wangxu@chi­nadaily.com.cn

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 huy­ongqi@chi­nadaily.com.cn 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 huy­ongqi@chi­nadaily.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.

BULLIT MARQUEZ / AP

Suite 2800, New York, NY 10036. US Sec­re­tary of State John Kerry Pe­ri­od­i­calis greeted postageby his paid Philip­pineat New coun­ter­part Per­fecto Yasay be­fore theirYork, NY meetingand ad­di­tion­alin Pasay mail­ing City, of­fices. south of Manila, on Wed­nes­day. POSTMASTER: Send ad­dress changes to CHINA DAILY USA, 1500 Broad­way, Suite 2800, New York, NY 10036.

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