BEIJING, Nov. 23 (Xinhua) – China's National Financing Guarantee Fund signed contracts for its first batch of equity investment deals with a dozen of government-backed financing guarantee institutions on November 20, reported Xinhua Finance, a financial information platform run by Xinhua News Agency.
The fund, established by a group of banks and financial institutions including the country's five largest commercial lenders, policy banks, and insurers in September 2018, is dedicated to solving the financing difficulties of small- and micro-sized enterprises and financing problems related to agriculture, rural area and farmers.
Li Cheng, board chairman with the National Financing Guarantee Fund, said that making equity investment in government-backed financing guarantee institutions is one of the two business sectors approved by the State Council and marked a vigorous measure to press ahead with development of the government-backed financing guarantee system in China.
In next step, the National Financing Guarantee Fund will continue to work on equity investment, reserve quality investment targets and gradually form a set of administrative measures suitable for equity investment in government-backed financing guarantee institutions in China, added Li.
Since September 2018, the National Financing Guarantee Fund has helped 382,900 small- and micro-sized businesses and market entities related to agriculture, rural areas and residents obtain 627.018 billion yuan of loans through re-guarantee services. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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