FILE PHOTO: The logo of Industrial and Commercial Bank of China (ICBC) is pictured at the entrance to its branch in Beijing, China April 1, 2019. REUTERS/Florence Lo/File Photo
March 5, 2022
BEIJING/SHANGHAI (Reuters) – China aims to boost lending to small businesses from large commercial banks by over 40% this year, Premier Li Keqiang told the annual meeting of parliament on Saturday.
The government will urge financial institutions to cut lending rates further, reduce fees and promote mid- and long-term lending to the manufacturing sector, Li said, reading his work report.
China’s five major banks – Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China , Bank of China and Bank of Communications – each reported more than 30% lending growth to small businesses in 2021, state broadcaster CCTV said in January.
CCTV said the highest growth was 53.15% by a bank it did not name.
China has been making efforts to enhance financing support to micro- and small enterprises, which it sees as key contributors to stabilising employment and people’s livelihoods.
The government will prioritise employment through fiscal and financial policies to enhance support for companies to keep and increase jobs, Li said. It will also set up a financial stability guarantee fund as to safeguard against systemic risks, he said.
Li also said China will fully implement a registration-based IPO system this year.
(Reporting by Zhang Yan, Samuel Shen and Ryan Woo; Editing by Kim Coghill and William Mallard)
Source: One America News Network
