Chinese private enterprises accounted for over half of new business lending in the first half of 2022, amidst a push from central government regulators for greater financial inclusion.
He Guofeng (何国锋), deputy-head of policy research at the China Banking and Insurance Regulatory Commission (CBIRC), said to state-owned media that private enterprise loans accounted for 53.5% of all new enterprise lending in the first half of 2022, for an increase of 0.8 percentage points compared to the same period last year.
The average annualised interest rate for new private enterprise loans in the first half of 2022 was 4.74%, for a decline of 0.57 percentage points compared to the same period last year.
“This reflects the active progress made by mechanisms to encourage lending to private enterprise…the scope of financial coverage is steadily expanding, and the quality and efficiency of service has markedly improved.”
As of the end of June the private enterprise loan balance of Chinese banks stood at 58.2 trillion yuan, for year-on-year (YoY) growth of 11.4%.
The number of private enterprises in China with lending balances was 83.47 million, for a YoY rise of 11.4%.