China’s Central Bank Holds Symposium to Boost Financial Support for Private Enterprises

China’s central bank, the People’s Bank of China, recently convened a symposium to discuss and promote financial support for the development of private enterprises. The meeting, chaired by the bank’s Party Secretary and Governor, Pan Gongsheng, aimed to facilitate better coordination between financial institutions and private enterprises, explore ways to enhance financial support, and foster connectivity between supply and demand in the financial sector.

Representatives from notable private enterprises like Yili Group, Hongqiao Group, Longfor Properties, Chint Group, New Hope Group, China Xuhui Group, Midea Real Estate, and Hongdou Group, along with key figures from various financial institutions and the China Foreign Exchange Trading System & National Interbank Funding Center, attended the symposium. The discussions revolved around the financing situations of the participating enterprises, and they highlighted the positive trends of stable or reduced financing costs and increased financial support in recent years. They also put forth suggestions to further expand bond financing channels and other financial support measures.

Major Chinese banks, including the Industrial and Commercial Bank of China and the China Construction Bank, expressed their commitment to support private enterprises by improving the stability of loans and extending credit coverage to micro, small, and medium-sized enterprises. They also pledged to facilitate the issuance of bonds by private enterprises. The China Foreign Exchange Trading System & National Interbank Funding Center assured continued support for private enterprises in bond financing, promoting market innovations, and catering to their diverse financing needs.

Pan Gongsheng emphasized the vital role of the private sector in China’s socialist market economy and the importance of financial support to aid its development. The People’s Bank of China has been dedicated to implementing policies and measures to increase financing, broaden financing channels, and reduce financing costs for private enterprises, in line with the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council.

Going forward, the central bank will continue to adhere to the requirements outlined in the “Opinions on Promoting the Development and Growth of Private Enterprises” issued by the Central Committee and the State Council. It will meticulously implement a prudent monetary policy, maintain reasonable liquidity, and coordinate financial, fiscal, and industrial policies to direct more financial resources toward the private sector. The bank plans to issue guiding documents to support private enterprises, optimize internal control management systems in commercial banks, and enhance policy communication and interpretation while promoting the use of successful experiences.

Pan Gongsheng urged financial institutions to create a conducive environment for the growth of private enterprises, enhance risk assessment capabilities, comprehensively review policy arrangements concerning performance assessments, business authorization, internal fund transfer pricing, and due diligence, among others. Moreover, he encouraged banks to understand the financial needs of private enterprises, respond to their concerns, and improve financial services to provide reliable, efficient, and convenient financial support.

The symposium also discussed the financing needs of private real estate enterprises and ways to facilitate stable and healthy growth in the sector. The People’s Bank of China and the State Administration of Foreign Exchange also participated in the event.