Five key Chinese regulatory bodies, including the People’s Bank of China (PBC) and the All-China Federation of Industry and Commerce, convened a high-level symposium on Friday to reinforce financial support for the high-quality growth of the private economy.
The meeting, held ahead of China’s top legislative sessions, outlined measures to increase credit allocations to private, small, and micro-enterprises, while streamlining financing channels through equity, bonds, and loans, according to a PBC statement released on Sunday.
Monetary Policy to Favor Private Sector
Pan Gongsheng, Governor of the PBC, announced that the central bank will guide financial institutions to channel more resources into the private economy and maintain ample liquidity through a moderately loose monetary policy. Pan noted that financing costs for private enterprises are expected to remain low for an extended period, creating a favorable environment for private sector growth.
Further steps will be taken to improve financing mechanisms and tackle long-standing challenges of costly access to credit for small businesses.
Massive Credit Commitments from Major Banks
Liao Lin, Chairman of the Industrial and Commercial Bank of China (ICBC), stated that 98% of ICBC’s corporate clients are private enterprises. The bank pledged to offer no less than 6 trillion yuan ($824 billion) in investment and financing to private firms over the next three years, particularly boosting medium- to long-term funding.
Capital Markets and Tech Sector Focus
Yuan Duoran, Deputy General Manager of the Shanghai Stock Exchange, emphasized plans to expand equity financing channels and encourage top-tier private tech companies to list on the STAR Market.
Meanwhile, Xu Li, Chairman and CEO of SenseTime, suggested developing special loans and hybrid stock-bond financing options to support AI companies facing high capital needs.
Policy Continuity and Future Outlook
The symposium builds on the 25 financial support measures introduced in late 2023 to improve financing for small and medium-sized enterprises.
Economists expect these policies to boost market confidence, encourage private investment, and enhance private firms’ competitiveness in high-tech sectors. With sustained support, private enterprise development is anticipated to reach new heights in 2025, playing a critical role in achieving China’s economic growth targets.
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