China central bank issues guidelines on boosting support for small firms
Reuters
Published Jun 25, 2018 04:50AM ET
Updated Jun 25, 2018 05:00AM ET
China central bank issues guidelines on boosting support for small firms
BEIJING (Reuters) - China's central bank on Monday issued guidelines for increasing financial support for smaller companies, including expanding financing channels for them, improving the business environment and implementing favorable tax policies.
The notice follows a pledge from China's State Council last week to channel more loans to small firms and reduce their funding costs and Sunday's announcement from the People's Bank of China on reducing the amount of cash that some banks must hold as reserves.
The lack of financing for small firms has been a policy challenge to Beijing for years. Large state firms have greater access to funds at cheaper rates even though on the whole they are less efficient than smaller private firms.
Monday's announcement, made jointly with China's other financial regulators, said China will increase relending and rediscount quotas by 150 billion yuan ($22.96 billion) to support small firms and the agriculture sector.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.