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Policy

China unveils more policies to promote dev. of SMEs

August 24, 2018


Abstract : China has recently unveiled a string of policies to promote the development of small and medium-sized enterprises (SMEs), with the focus on reducing financing costs, expanding direct financing channels for the SMEs, and reducing their taxes and fees.

SME

BEIJING, Aug. 24 (Xinhua) -- China has recently unveiled a string of policies to promote the development of small and medium-sized enterprises (SMEs), with the focus on reducing financing costs, expanding direct financing channels for the SMEs, and reducing their taxes and fees.

Analysts point out that with the implementation of these policies, the domestic SMEs are expected to get a better investment and development environment. Meanwhile, the domestic private investment in the second half of the year is expected to continue the improvement.

According to the recent executive meeting of the State Council, China's cabinet, financial institutions are encouraged to increase loans to money-hungry small businesses. Microlending will be linked to performance appraisal of lenders, and the banking regulator will be more tolerant of moderate increases in loan-to-deposit ratios.

In addition, on August 17, China Banking and Insurance Regulatory Commission also announced to vigorously develop inclusive finance and strengthen financial services for small and micro enterprises and private enterprises.

The country's policies of easing the financing difficulties of SMEs are very timely and can effectively encourage the investment confidence of SMEs, said Ju Jinwen, a researcher at the Institute of Economics of the Chinese Academy of Social Sciences.

In addition to reducing the financing costs of SMEs through monetary and fiscal policies, more fields should be open to private capital so as to stimulate investment enthusiasm of SMEs as they are mainly in the traditional fields where overcapacity is a headache, according to Zhang Jun, chief economist of Morgan Stanley Huaxin Securities. (Edited by Hu Pingchao, [email protected])

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Keyword: China-policy small-business

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