Abu Dhabi, UAEThursday 23 January 2020

China’s central bank pledges financial support for small firms in 2020

The People’s Bank of China says it is improving its incentive mechanism to boost lending

The People's Bank of China said it will take steps to improve lending to small and micro firms this year. Reuters
The People's Bank of China said it will take steps to improve lending to small and micro firms this year. Reuters

China’s central bank pledged more financial support for small and micro businesses while saying it plans to stick to a prudent monetary policy stance this year.

The People’s Bank of China will improve the incentive mechanism for lending to such companies, it said in a statement following a two-day work conference in Beijing.

Authorities will make it easier for them to gain access to financing through targeted reserve cuts, re-lending and re-discounting, among other policy tools, it said.

The central bank also said it would continue efforts to defuse major risks with a focus on building a long-term regulatory mechanism for internet finance and real estate financing.

The State Administration of Foreign Exchange, China’s forex regulator, said separately that it would diversify policy tools to counter the impact from external shocks on the country’s trade and investment, international balance of payment and cross-border capital flows.

China’s banking and insurance regulator on Friday vowed to take a series of measures to shore up the nation’s troubled smaller banks and insurers while continuing a clampdown on shadow financing and property speculation.

Updated: January 5, 2020 02:56 PM

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