Supporting Smaller Enterprises
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.