China bolsters financial services for private companies
BEIJING - Chinese authorities have unveiled a raft of measures to strengthen financial services for private companies as part of efforts to help spur their growth.
Stronger financial support will go to private firms, especially micro, small and medium-sized ones, as well as those in tech-intensive areas like low-carbon industries, said a circular jointly released by eight authorities including the People's Bank of China and the National Financial Regulatory Administration.
The circular stressed the facilitation of access to diverse financing channels including credit, bonds and stock options. It urged efforts to ramp up credit support for first-time loan applicants, encourage institutional investors to include private firms' corporate bonds in their portfolios, and support private firms in stock market listings and mergers and acquisitions.
A mix of monetary policy tools, fiscal incentives and insurance backstops will be used to mobilize financial institutions' willingness to serve private firms.
The moves came after China's pledge earlier this year to boost the growth of the private economy, with authorities vowing to improve the business environment, enhance policy support and strengthen the legal guarantee.
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