On November 27, the People’s Bank of China, the State Administration of Financial Supervision, and the China Securities Regulatory Commission, among other departments, issued a “Notice on Strengthening Financial Support Measures to Help the Development and Growth of the Private Economy.” This notice proposes 25 measures to support the private economy, addressing the ongoing pressures faced by private enterprises.
Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, emphasized the significance of these measures, stating that they will inject strong impetus into the development of private enterprises and boost market confidence.
Key measures outlined in the notice include increasing financial support for private enterprises, focusing on areas such as technological innovation, green and low carbon initiatives, and restructuring projects for small, medium, and micro-enterprises. The notice also emphasized the need for banking financial institutions to not blindly suspend, suppress, withdraw, or terminate loans. Additionally, the notice proposed measures to optimize the bond market system and expand the scale of equity financing for high-quality private enterprises.
Wang Qing, chief macro analyst of Oriental Jincheng, pointed out the importance of increasing policy support for private small and micro-enterprises, predicting a continued growth rate of inclusive small and micro-enterprise loan balances. Wang also highlighted the need to support real estate companies by effectively increasing credit to private real estate companies.
The notice also emphasized the significance of enhancing the financial carrying capacity of the private economy by increasing foreign exchange facilitation policies and service supply, as well as using monetary policy tools, fiscal incentives, insurance guarantees, and other measures to enhance the enthusiasm of financial institutions in serving the private economy.
Chen Li, chief economist of Sichuan Finance Securities, emphasized the importance of capital serving the real economy, further leveraging the advantages of the comprehensive registration system to support private enterprises in listing financing and mergers and acquisitions.
In conclusion, the joint notice issued by the eight departments is aimed at unblocking private enterprise bond financing channels and supporting private enterprise listing financing and mergers and acquisitions. The next focus will be on strengthening implementation and increasing coordination and cooperation between the financial department and financial institutions.
(Source of article: Securities Daily)
Author of the article: Liu Qi
Original title: The central bank and other eight departments jointly issued 25 measures to unblock private enterprise bond financing channels to support private enterprise listing financing and mergers and acquisitions. Solemnly…