Sup­port­ing Smaller En­ter­prises

Beijing Review - - THIS WEEK ECONOMY -

China will in­ten­sify its sup­port for the de­vel­op­ment of the pri­vate sec­tor, and small and medium-sized en­ter­prises (SMES) to boost the vi­tal­ity of mar­ket en­ti­ties and en­hance their con­fi­dence, an ex­ec­u­tive meet­ing of the State Coun­cil, China’s cab­i­net, de­cided on De­cem­ber 24, 2018.

Pre­mier Li Ke­qiang called for giving stronger sup­port to pri­vate busi­nesses and SMES to ease their fi­nanc­ing woes and pro­mote the in­te­grated de­vel­op­ment of busi­nesses of all sizes.

“To boost the pri­vate sec­tor of the econ­omy and mi­cro and small busi­nesses, it is cru­cial to cre­ate a level play­ing field, es­pe­cially in prop­erty pro­tec­tion and mar­ket ac­cess, for these busi­nesses to com­pete in a law-based, neu­tral en­vi­ron­ment,” Li said.

Stronger in­no­va­tion ca­pac­ity will be sup­ported. Cat­a­logues of rec­om­mended prod­ucts and ser­vices will be is­sued to help hi-tech SMES gain bet­ter ac­cess to the mar­ket.

Deeper tax and fee cuts will be in­tro­duced; fi­nanc­ing ser­vices will be im­proved; and the re­quired re­serve ra­tio cuts tar­get­ing in­clu­sive fi­nance will be re­fined. The re­lend­ing pol­icy tar­get­ing small firms will be ex­panded to qual­i­fied small and medium-sized banks and new-type In­ter­net bank­ing.

The per­mit pro­cesses for the list­ing and re­fi­nanc­ing of pri­vate firms will be ac­cel­er­ated. As­set man­age- ment prod­ucts and in­sur­ance funds will be em­ployed in ad­dress­ing the risks of eq­uity-backed mort­gages of listed pri­vate firms.

Li stressed the im­por­tance of keep­ing poli­cies well-co­or­di­nated, con­sis­tent and cred­it­wor­thy to pro­vide busi­nesses an en­abling en­vi­ron­ment and an­chor mar­ket ex­pec­ta­tions.

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