China to lend financing support to real economy, small businesses

BEIJING - At an executive meeting of China’s State Council, Premier Li Keqiang today vowed to alleviate financial burdens for the real economy while maintaining proper levels of credit growth. While the economy is not currently experiencing a credit crisis or low money supply, many enterprises still face challenges in accessing funds.

Li’s proposal involves 10 specific measures that aim at optimising a credit structure that can co-exist alongside prudent monetary policy and reasonable levels of credit growth. Among these measures are outlines to support specific areas such as SMEs, the agriculture sector, and services and energy-saving industries.

In addition, there also will be a focus on curbing fund-raising costs of financial institutions, cutting redundant procedures, cleaning up unnecessary charges and improving credit management and other inefficiencies in China’s commercial banks. The hope is that these measures will help support growth while preventing the flow of credit to the undesired property sector.  www.webershandwick.cn (ATI).