China's central bank to boost private enterprise lending

China's central bank to boost private enterprise lendingEconomy 13:39, 04-Jan-2024

CGTN

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The People's Bank of China (PBOC), the country's central bank, has announced plans to gradually increase the allocation of loans to private enterprises. Deputy Governor Lu Lei made this announcement on Tuesday during a National Development and Reform Commission conference in Jinjiang City, Fujian Province, and highlighted the bank's efforts to support the development of private businesses.

Lu highlighted the progress achieved in assisting the private sector, emphasizing that authorities have been actively providing capital support through measures such as reducing the reserve requirement ratio and implementing relending and rediscounting policies. The total outstanding volume of relending has already surpassed 2.2 trillion yuan ($310.23 billion).

To enhance lending stability for private enterprises, the authorities have focused on improving services for smaller businesses. As of November 2023, outstanding lending to privately-held enterprises reached 41.2 trillion yuan, marking a 10.4 percent year-on-year increase.  

Additionally, inclusive loans to micro and small businesses reached 28.9 trillion yuan, demonstrating an average annual growth rate of 25 percent over the past five years. Nearly 140 private enterprises have received support to issue bonds worth a total of 243.8 billion yuan.  

Looking ahead, Lu stated that the central bank will enhance the precision and effectiveness of serving the private economy. This includes expanding financing channels, facilitating private enterprises' access to bonds, and improving cross-border financing convenience to attract foreign capital.

(Cover via CFP)

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