China Plans More Help for Private Firms, SMEs This Year, Regulator Says
Dou Shicong
DATE:  Mar 06 2019
/ SOURCE:  yicai
China Plans More Help for Private Firms, SMEs This Year, Regulator Says China Plans More Help for Private Firms, SMEs This Year, Regulator Says

(Yicai Global) March 5 -- China will take more steps this year to support private businesses, micro firms and small- and mid-sized enterprises, one of the country's top regulators said.

The government aims to achieve its goal of increasing loans to SMEs from large commercial banks by more than 30 percent, China's official Xinhua News Agency reported, citing Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.

The five major state-owned banks and 12 joint-stock commercial banks have set up inclusive financial departments that specialize lending to SMEs and micro firms, Guo said today at the 'two sessions,' the country's annual gatherings of legislative delegates and political advisers. Their loans to borrowers with credit under CNY10 million (USD1.5 million) jumped almost 22 percent last year, he added.

Guo said that the five state banks' share of the country's banking sector is declining. It has fallen to about 38 percent from more than 50 percent in the past 10 years. The number of small- and medium-sized lenders and private banks is increasing, and they have more business catering to SMEs.

Many banks have audited firms using Big Data and internet technologies in recent years, enabling them to lend quickly and keep their non-performing loan ratios at very low levels. "Some internet banks and internet micro-credit companies have done well in this respect, we will promote these experiences this year and take more measures to support the development of private enterprises and SMEs," Guo said.

Premier Li Keqiang delivered a government work report today at the two sessions, saying that the authorities will focus on easing financing for businesses, increasing state-backed large lenders' loans to SMEs by more than 30 percent to significantly cut the financing costs of SMEs and micro enterprises.

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Keywords:   Two Sessions,Guo Shuqing