China unveils steps to strengthen financial services for private firms

Micro, small, and medium enterprises (MSMEs) will receive special focus along with those in tech-intensive areas like low-carbon industries, said a circular jointly released by eight authorities including the People's Bank of China and the National Financial Regulatory Administration.

Access to diverse financing channels, including credit, bonds and stock options, will be facilitated, and a mix of monetary policy tools, fiscal incentives and insurance backstops will be used to mobilise financial institutions' willingness to serve private firms, a state-controlled media outlet reported.

The circular called for efforts to ramp up credit support for first-time loan applicants, encourage institutional investors to include private firms' corporate bonds in their portfolios, and support private firms in stock market listings and mergers and acquisitions.

ALCHEMPro News Desk (DS)