China will strengthen the connection and sharing of credit information between enterprises and financial institutions to meet the demand for financing of small and micro enterprises, and efforts will be made to ensure that support to private enterprises is provided on time. wanted and in its entirety, officials and an analyst said.
By creating a national social credit network, China has extended the model of credit-based lending to better serve the real economy and facilitate the financing of private enterprises, said Zhang Chun, head of the National Development and Development Commission. reform, the country’s greatest economic planner. , said Friday at a press conference.
Finding that the lack of sufficient credit information is an acute problem causing financing problems for small businesses, the credit-based lending model works on the basis of sharing credit information and using big data to fully exploit the value of credit information. This helps resolve issues of misinformation and misinformation between banks and small businesses, and forges a strong credit information channel between the two.
A comprehensive national credit service platform to support the financing of small and micro enterprises has been established, said Zhang. He has worked in conjunction with some 255 subnational platforms handling business information requests for financial institutions.
China has made constant efforts to channel more affordable loans to small businesses. At the end of July, outstanding inclusive loans for small and micro-enterprises stood at 17.8 trillion yuan (2.7 trillion dollars), an increase of 29.3% year-on-year.
He said that efforts will be made to improve the network of financial services platforms. Efforts are underway to include information on taxation, social insurance and intellectual property in the credit information sharing system. Risk monitoring will be strengthened and information security will also be preserved.
During the briefing, Jiang Yi, also an NDRC official, said the commission will work to ensure that policies supporting private enterprises are fully implemented and that the level of support remains unchanged.
With the COVID-19 pandemic and changing global dynamics since last year, the Chinese economy faces serious growth challenges. But the country’s private companies have shown great potential for growth, resilience and vitality, Jiang said.
He said greater efforts will be made to overcome obstacles for private companies to enter the market.
The NDRC is now working with relevant ministries on a complete overhaul of the current negative list for market access and to make the list even shorter.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said the country’s recent anti-monopoly efforts are essentially pilot steps in some emerging modes of trade.
“The country’s antitrust efforts are primarily aimed at preventing major risks and creating a fair marketplace to stimulate the growth of all businesses, ensuring that all businesses, regardless of size, are able to compete for them. market resources on an equal basis, ”he said. .
Liu Yeqing, founder and chairman of Holic Electrical Technology Co Ltd, a private company in Wuhan, Hubei Province, said the company has notably benefited from national support for private companies in recent years.
She said that last year, the company successfully obtained patent guarantee loans of up to 10 million yuan from local banks. The loan interest rate was only 2.03% thanks to some incentives to subsidize private companies to help with temporary bailouts, which were much lower than general loans.
“It was an amount of cash that significantly eased operational pressure on businesses during tough times of COVID-19,” she said.
Source: China Daily