China’s top financial regulators, led by the central bank, have reaffirmed their commitment to supporting the financial needs of private companies. They have urged banks to increase lending to the private sector, signalling Beijing’s determination to reignite entrepreneurial spirit amidst challenging economic conditions.
Policy documents are currently being formulated, with a focus on encouraging China’s financial institutions to set annual targets for serving private firms and expand loans to first-time borrowers. Additionally, private companies, including platform businesses, will be given incentives to list overseas.
The meeting that took place included representatives from the central bank, top foreign exchange and securities regulators, as well as the newly-established National Administration of Financial Regulation. State media reported that attendees also included representatives from the Shanghai and Shenzhen stock exchanges, major state lenders, and private companies.
In recent months, Beijing has introduced a series of measures aimed at boosting the struggling private sector. However, economists argue that more significant stimulus plans are needed to address the mounting economic pressures. Investment by private companies in China declined by 0.5% in the first seven months of this year, further widening the decline observed in the January-June period.