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China to Enhance Financial Services for Private Enterprises
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Chinese
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Category：Legislative Updates
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Subject：Finance
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Keywords：private enterprises; financial service; private economy
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Source：Pkulaw
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Publish Date：11-30-2023
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Recently, the People's Bank of China (PBOC) and other seven departments jointly issued the Circular on Intensifying Financial Support for the Growth of Private Economy.
The Circular highlights the efforts to establish diverse unimpeded financing channels covering credit loans, bonds and equities in line with the specific financing needs of private enterprises. Banking financial institutions should increase their financial support for first-time loans and credit loans, and proactively provide financial services for both industrial chain and supply chain, according to the Circular. Also, it calls for the optimization of the registration mechanism for private corporate debt financing tools. Institutional investors should be guided in the well-convinced allocation of private corporate debts. Further, the Circular pledges to support the IPO financing and M&A and reorganization of private enterprises, and leverage the role of regional equity market and equity investment fund on spurring the growth of private enterprises. Meantime, it stresses enhancing the facilitation of the balance of current accounts, improving policies for unimpeded cross-border investment and financing, and optimizing cross-border finance and foreign exchange services, as part of efforts to support private firms in going global and bringing in foreign investments.
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