Chinese Small Businesses Will Take Flight on the Wings of Fintech: Central Bank Official

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A senior official from the People’s Bank of China (PBOC) says that fintech will play a critical role in efforts to drive financial inclusion for Chinese small businesses.

Chen Yulu (陈雨露), PBOC deputy-governor, said that in 2021 macro-financial policy would “maintain continuity, stability and sustainability,” with an ongoing focus on financial inclusion and support for the development of Chinese small businesses.

Speaking on 10 March at the sidelines of China’s Two Sessions congressional event, Chen said that policies to defer debt repayments for Chinese micro and small-enterprises (MSE’s) impacted by the COVID-19 pandemic will continue this year, while the big four state-owned banks have also set a growth target of at least 30% for financial inclusion MSE lending in 2021.

The share of unsecured MSE loans will continue to rise in 2021, and China will provide special financial support to micro, small and medium-sized enterprises in “new development areas,” including tech-board MSE’s, green MSE’s, and rural village enterprises.

Chen also said that fintech will play a key role in China’s ongoing financial inclusion drive.

“China’s digital financial inclusion undertakings will continue to grow rapidly, greatly alleviating the problem of information asymmetries in MSE financing, and enabling MSE’s to take flight on the wings of fintech,” said Chen.

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