PBOC pledges more support for private firms

BEIJING: China’s central bank on Monday said it would continue to enhance financial support for private enterprises and work to lower their comprehensive financing costs.

In the next stage, more monetary policy support will be tilted toward private micro and small companies, the People’s Bank of China said in its latest monetary policy report for the third quarter.

The report said that positive results have been achieved through measures such as encouraging commercial banks to issue special financial bonds for micro and small firms and supporting the financing of private micro, small and medium enterprises in the supply chain.

By the end of September, China’s inclusive loan support facility had provided incentive funds of 52.6 billion yuan (about $7.4 billion) for micro and small companies, up 25.1 billion yuan from the beginning of the year, the report said.

The outstanding loans to small and medium-sized sci-tech enterprises came in at 2.4 trillion yuan by end-September, up 22.6 percent year on year.

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The report also pledged to make systematic arrangements in terms of financial support for the private sector, among other measures, to ensure that financial support for the private economy aligns with the contribution of the private economy to the country’s economic and social development.