15 July 2019
China Looks to Facilitate Easier Financing for Small Businesses
The financing costs for low-profit enterprises are to be reduced in line with a new directive from The State Council.
In more specific terms, the following measures are to be implemented:
- Interest rates are to be further reformed, while the market-oriented rate mechanism for commercial bank loans is to be reviewed
- Support is to be given to medium-sized and small / low-profit businesses with regard to bond and bill financing, while the regulatory and evaluatory methods deployed by commercial banks when dealing with such business is to be reviewed, as are the loan resources accessible by financial institutions
- The comprehensive implementation of the award / subsidy policy for the reduction of financing guarantee fees for small low-profit businesses and the wider deployment of State financing guarantee funds as a means of cutting re-guarantee rates