Financial support for private business boosted

China will beef up financial support to private businesses with targeted monetary and credit policies, according to a guideline published on Thursday.

The guideline, issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, aims to provide an effective solution to the financing difficulties faced by private businesses, which include the high cost of funding.

It also seeks to increase the vitality of micro-sized enterprises and give play to the role of private businesses in promoting economic growth and creating jobs.

It also aims to give businesses equal access to financing services, irrespective of their ownerships structure.

Financial institutions will be encouraged to lend more money to private enterprises and small and micro-sized businesses, the guideline said.

Eligible private companies will be able to expand direct financing and be supported in the issuance of corporate bonds. Financial institutions should increase their investment in corporate bonds issued by private businesses, the guideline said.

Financial institutions will receive support to replenish their capital through the financial market, and banks will be encouraged to step up the settlement of nonperforming assets so that funds can be directed to private businesses.

The guideline also calls for the establishment of information service platforms. Credit agencies will be encouraged to offer credit products and services to private enterprises.

The government will actively foster angel investors and venture capital companies that invest in private companies pursuing technological innovation, the guideline said.

It also highlighted the importance of improving private enterprises’ access to financing. The proportion of corporate loans to private companies should be lifted, and private companies should not be discriminated against when applying for loans.