China to further cut financing costs for small businesses

China's top banking and insurance regulator announced that the overall financing costs of inclusive financing services for small businesses will be cut by another half percentage point this year as part of the efforts to boost the real economy.


Photo: CGTN

Loan growth for small business will be higher than the average growth rate of loans. The quantum of inclusive loans to small firms from five largest banks will grow by over 20 percent year on year, according to a statement released on Saturday.

The regulator also said the country will beef up financial services for private businesses, especially private manufacturing businesses, and enhance support for advanced manufacturing enterprises and industrial clusters.

The country will further provide financial support for social services, while financial policies will also support hog production to ensure a steady pork supply.

In addition, the country will continue to guard against financial risks though various measures, such as enhancing regulation over shadow banking and preventing irregular inflow of credit funds into the property sector.

In 2019, new yuan-denominated lending amounted to 17 trillion yuan (2.5 trillion U.S. dollars), 1.1 trillion yuan more than the previous year. Total outstanding inclusive lending to small businesses stood at 11.6 trillion yuan by the end of 2019, an increase of over 25 percent year on year.