China to intensify financing support for small, micro firms

BEIJING, May 21 (Xinhua) -- China will further step up financing support for small and micro enterprises by increasing financing supply, lowering financing costs, and enhancing the precision of supportive measures, according to a guideline issued Wednesday by eight departments.

The document -- jointly issued by the National Financial Regulatory Administration, the People's Bank of China, the National Development and Reform Commission and other authorities, proposes 23 concrete measures to boost financing for small and micro firms.

To increase financing supply for these companies, the country will strengthen the issuance of first-time loans, credit loans, medium- to long-term loans, corporate loans and loans to private enterprises, the guideline revealed.

Financing support for small and micro firms in the agricultural sector will be strengthened by leveraging structural monetary tools including re-lending, the document said.

China will also support small and micro enterprises in pursuing equity financing, the guideline stated.

To reduce the financing costs of small and micro companies, the country will guide banks to determine their lending rates for such enterprises reasonably while lowering additional loan-related fees.

China will also guide banks to improve their financing efficiency, streamline application materials and optimize approval procedures, said the document, while adding that more support will be channeled to science and technology-oriented, innovation-driven small and micro firms as well as those engaged in new business models regarding foreign trade. Enditem