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Private enterprises deserve more financial support

China Daily | Updated: 2023-11-29 08:54

This undated file photo shows an exterior view of the People's Bank of China in Beijing, capital of China. [Photo/Xinhua]

The People's Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission and five other departments jointly issued a notice on Monday, emphasizing that private enterprises' financing needs should be given attention and they should receive support.

For a long time, the financial support for private enterprises has not matched their contributions to economic and social development. In 2018, for example, the proportion of loans taken by private enterprise was about 25 percent, but the share of the private economy in the national economy exceeded 60 percent.

Currently, supporting private enterprises is the key to promoting economic recovery. Improving the financing environment, financial support and providing more high-quality, convenient and efficient financial services to private enterprises are crucial for promoting high-quality development of the private economy.

The notice proposes to strive to achieve a balance between financial support for the private economy and its contribution to economic and social development.

Credit is the main channel for financial services to support the real economy. It is necessary to deepen the construction of the bond market system, smoothen the bond financing channels for private enterprises, better leverage the role of multi-level capital markets and expand the scale of equity financing for private enterprises.

In order to boost the confidence of private enterprises, it is necessary to improve the financial risk prevention, early-warning and disposal mechanisms so that they can work without worrying much about their future. The notice specifically proposes to optimize financial support policies and improve the role of finance to boost the private economy. Specific measures such as strengthening the protection of the use of bills by private enterprises and preventing the delay of debt payment to private enterprises can further reduce their burden.

Difficult and expensive financing is one of the long-standing problems that hinder the development and growth of private companies. The proposal is expected to make financial institutions "dare to lend, be willing to lend, and be able to lend" to private enterprises.


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