Financial Sector Must Expand Support for Private Enterprise: Chinese Central Bank

The People’s Bank of China (PBOC) has called for the Chinese financial sector to provide more support to private enterprise.

At a meeting held on 19 September PBOC chair Yi Gang (易纲) said that Chinese financial institutions “must further expand their financial support for private enterprise, and effectively perform financial services work,” according to a report from state media.

Yi said that financial institutions should treat China’s state-owned economy and private economy equally when it came to the provision of loans or purchase of bonds.

“All of the major banks must serve as an example, accurately seizing the unique features of the growth of private enterprise, raising risk appraisal capabilities, innovating financial products and services, establishing sustainable commercial models for servicing private enterprises, and providing more high-quality financial services to private enterprises.”

Chinese finance has long been dominated by the banking sector, much of which is state-owned and beholden to the policy imperatives of the central government.

Yi Gang also said that the People’s Bank of China would maintain stable and neutral monetary policy and “rationally ample” liquidity.

PBOC will “guide financial institutions in providing financial support to those private enterprises that have prospects, markets and technology but are seeing temporary liquidity difficulties; stabilise private enterprise financing and strengthen market confidence.”

The Chinese central bank will also support local governments in resolving the financing difficulties of regional private enterprises by means of tailored policies that suit actual local conditions.

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