BUSINESS Tackling small firms’ liquidity needs

BUSINESS

Tackling small firms’ liquidity needs

Global Times

06:50, November 12, 2018

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(Photo:Xinhua)

China will provide more investment opportunities and better services for private businesses in the country, said Ning Jizhe, deputy head of the National Development and Reform Commission.   


China will promote a series of projects in the sectors of transport, energy, ecology and environmental protection in line with national industrial policies, with sound preliminary work and a clear investment return mechanism to private businesses, said Ning, also head of the National Bureau of Statistics.


Each year, the country will publish a list of promotion projects for private businesses, with follow-up support and services.


Apart from reducing administrative approvals, China will continue to remove hidden obstacles for private capital to enter key sectors, reinforcing financing support for private investment, he said.


Ning said China has implemented pilot reforms of mixed ownership in the sectors of electricity, oil, gas, railway, aviation, telecommunication and the defense industry. 


To encourage private businesses to participate in the mixed ownership reform, China will expand the pilot areas, make better use of private capital and improve supporting policies.


Ning stressed the protection of private businesses' property rights and carrying forward entrepreneurship.


While enhancing the coordination of macroeconomic policies, China will introduce a negative list for market entry, establish an evaluation system and cut taxes and costs to improve the business environment for private businesses, Ning added.  


China's private investment has maintained a steady rise at a rate of above 8 percent so far this year, accounting for about 60 percent of the country's total investment, Ning said. 


China will make more targeted efforts to boost the financial sector's support for the real economy and tackle financing difficulties for small and micro businesses, the State Council's meeting chaired by Premier Li Keqiang decided on Friday.


The meeting heard a report on the delivery of the policies regarding accessible and affordable financing for micro and small businesses.


The Chinese government places high importance on the financial services targeting micro and small businesses. 


Li underlined the importance of smoothing out the policy transmission channels with targeted measures and encourage financial institutions to raise the share of loans to micro and small companies and cut their financing costs.


"Government departments are encouraged to take a multi-pronged approach, and we must waste no time in helping small firms tackle their liquidity difficulties," Li said, "No loans extended should be willfully withdrawn."


It was pointed out at the Friday meeting that greater efforts will be made to enhance financial services for the private sector, especially micro and small firms.

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