On October 14, the State Council Information Office of China held a press conference to discuss increased efforts in assisting enterprises. Cong Lin, the Deputy Director of the National Financial Supervision Administration, outlined a series of recent initiatives aimed at optimizing financial services to eliminate funding bottlenecks for small and micro businesses.
According to the data presented, as of the end of August this year, the balance of RMB loans reached 252.02 trillion yuan, marking an 8.5% year-on-year increase. Insurance companies provided various financing supports totaling 28.8 trillion yuan through bonds, stocks, and other means.
Looking at the structural aspects, support for key sectors has seen a continuous increase, with loans to inclusive micro and small enterprises rising by 16.1% and loans to private businesses increasing by 9%. On the pricing front, interest rates have remained stable, with a slight decline. From January to August this year, the interest rate for newly granted inclusive loans to micro and small enterprises dropped by 0.4 percentage points compared to last year.
These numbers reflect a series of concrete measures undertaken by China to enhance financial services. Cong mentioned that the country is optimizing its policy on loan renewals without repayment, which alleviates cash flow difficulties for business operators. This policy is not only applicable to small micro enterprises but has also been temporarily expanded to include medium-sized enterprises.
Furthermore, relevant authorities have established a financing coordination mechanism to support micro and small businesses, creating a bridge for precise connections between banks and enterprises. This mechanism aims to improve the flow of information and financing on the banking side, helping businesses access the funds they need for development.
China is also leveraging the role of insurance to provide guarantees in areas such as construction and foreign trade. Cong highlighted that the introduction of performance guarantee insurance and customs guarantee insurance is intended to replace cash collateral. In the first half of the year, these measures have assisted 520,000 enterprises in unlocking existing funds and reducing cash flow pressure. Additionally, export credit insurance companies are encouraged to adopt a “credit guarantee + policy financing” comprehensive financial service approach to relieve many exporting enterprises of their concerns.
Finally, relevant departments are working to lighten the load on grassroots credit personnel, fostering a positive environment that encourages responsibility while ensuring diligent oversight. This collaboration aims to create a favorable setting for business development.
