China promotes financing guarantees for small firms, rural sector

BEIJING - China will boost financing guarantee services for small and micro businesses and the rural sector under rules released by State Council decree. Local governments should increase fiscal support for such companies while information technology such as big data should be adopted to better meet the demands of small firms and rural development, the rules state.

For the same purpose, Government-backed financing guarantee companies will be supported, and co-peration between the Government, banks and financing guarantee companies will be promoted.

Xinhua, the State newsagency, says the Government is working to channel funding to small and micro businesses and the rural sector, which are usually less favoured by banks due to higher credit risks than State-owned giants and other sectors.  www.webershandick.cn (ATI).