Firms get finance access

China will help private and small businesses get better access to financial services, a State Council executive meeting chaired by Premier Li Keqiang decided on Oct 22.

Policies will be rolled out to help the stable and healthy development of private businesses, according to a statement released after the meeting.

More support will be ushered to small and micro-sized financial institutions, including expanded support in reloans and rediscounts, the statement said.

The government will also promote the bond issuances of private businesses to help solve funding problems.

The central bank will provide initial funding support to professional institutions, which are entitled to provide credit enhancement to private businesses that face liquidity problems.

The professional institutions, which will run the bonds in line with market principles, will be required to take measures against financial risks.

Commercial banks and insurance companies will be encouraged to take part in the bond issuance when conditions are met, so that a risk-sharing mechanism can be established.

It was also decided at the meeting that an Internet Plus supervision system will be established to step up oversight of regional governments and departments as they assume functions of supervision.

The system, which will be based on the national administrative service platform, is also aimed at detecting and preventing risks that span multiple sectors and regions. The system will be unveiled in September 2019 together with the national administrative service platform, the statement said.