BEIJING, Nov. 6 (Xinhua) -- Local authorities in China have successively introduced a new round of policies to support private business, with financial support as the focus.
In terms of broadening financing channels for private enterprises, the local authorities have rolled out measures such as pushing banks to provide more funds to private enterprises, providing liquidity support directly to private enterprises and improving the financing guarantee system.
In Beijing, the Operations Office (Beijing) of the People's Bank of China (PBC) plans to set up a rediscount program of 7 billion yuan to support small and micro-sized enterprises as well as private enterprises. The governments of Xicheng, Chaoyang and Haidian Districts of Beijing propose to establish market-oriented funds to help listed private enterprises tackle the liquidity crisis of equity pledge.
In east China's Shanghai, the municipal government proposes to establish a 10 billion-yuan listed company bailout fund, provide 10 billion-yuan credit and secured loans for quality small and medium-sized private enterprises and gradually expand the policy-based financing guarantee funds for small, medium and micro-sized enterprises to 10 billion yuan.
In Zhejiang Province, documents were released recently to strengthen assessment in credit line granting for private enterprises, implement mechanisms involving due diligence as well as error tolerance and correction and provide targeted support for private enterprises in terms of credit access.
Insiders said that these policies point directly to the financing problems faced by private enterprises.
Policy-based financing guarantee funds are mainly aimed at solving the credit problems of private enterprises with low survival abilities and high credit risks, and excess risks need to be shared by policy-based guarantee institutions, said Zeng Gang, deputy director of National Institution for Finance & Development (NIFD).
Wen Bin, chief researcher of China Minsheng Bank (CMBC), also noted that related policies are intended to guide commercial banks not to set discriminatory market access for private enterprises but to innovate mechanisms and systems including risk identification and assessment mechanisms in a bid to meet diversified market demands.
However, insiders also stressed that financial institutions must control risks when providing more financial supplies to private enterprises. (Edited by Gu Shanshan)
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