Chinese authorities have decided to renew efforts to assist private companies facing financing difficulties, given the importance of those firms to the economy and the job market.To get more chinese financial news, you can visit shine news official website.

The private sector plays an important role in China’s economy, contributing more than 50 percent of tax revenue, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and new firms.

Answering questions about economic and financial issues, Vice Premier Liu He on Friday reiterated China’s basic economic system and the crucial role of the private sector.

“There must be no irresolution about working to consolidate and develop the public sector; and there must be no irresolution about working to encourage, support and guide the development of the non-public sector,” Liu said.

He added that misunderstanding and deviation existed in implementation, citing a viewpoint of some lenders that it was safe to provide loans to state-owned enterprises, but politically risky to loan to private businesses. “This kind of understanding and practice is completely wrong,” Liu said.

“Liquidity issue has been one of the main problems restraining the development of private companies,” said Dong Ximiao, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.

On Monday, the government decided to facilitate the bond issuance by private companies, with liquidity support from the central bank to professional institutions, according to a statement after a State Council executive meeting.

As private firms are important builders of socialism with Chinese characteristics, the country will unveil more policies to push for the steady development of those firms, the statement said.

It was decided at the meeting that funding support will be given to smaller financial institutions to raise their capability of serving private firms.

The People’s Bank of China said Monday on its website that it will provide guidance for supporting bond issues of private firms by offering a part of the initial capital.

Following a market-oriented principle, financial institutions will then focus on assisting the bond issues of companies with good prospects and technological competitiveness but which are in temporary difficulties.

“The support on bond issues of private firms will be conducive to stabilizing their expectation and market confidence, and pushing forward the sound development of the bond market,” Dong said.

The central bank also said that it will increase the quotas of relending and rediscount to financial institutions by 150 billion yuan (US$21.6 billion) to ensure that targeted loans can be channeled to private firms.

E-mail me when people leave their comments –

You need to be a member of The Brooklynne Networks to add comments!

Brooklynne Brands & Services


TicketENVY- Find & Buy Sold out Concert, Sports and Theater Tickets Worldwide

SeksCity Toys- Adult Pleasure Aids and Supplies (Must Be 18+)

SportsBrook- Fully Licensed Online Urban Sports Betting and Gaming Platform (Coming Soon)

KaratCity- Helping to provide regular people save and spend GOLD

VerticalRents- Helping Landlords mange and engage their Tenants Easier

MyTeleMedics- Get your Personal and Family Remote Healthcare Services NOW

FunderPass- Crowdfunding Platform for Urban Communty Projects Cause Activism and Upstanding Individual Needs

JesusBless MeCrowdfunding Plarform for Christian Based orgs in the City of Churches


Brooklynne Info Weekly- News nd Events of featured Brooklyn Entrepreneurs and Community Related Issues

Brooklynne Style Daily- Brooklyn & NYC Based Style and Fashion News

Brooklynne Shop- Exclusive Graphic Designs from Featured Artists and Partners

Brooklynne Hookups-  Find Urban Dates and HookUps

Local Business Services by The Brooklynne Agency- Full Service Digital Marketing and Development Marketplace

Brooklynne Social - Free Social Media Marketing Mgmt Platform for Brands

The Brooklynne Agency - Office

Phetch.Co Ordering Mgmt

Xpurts by Phetch - Have REMOTE private conferences and meetings with Professional Experts

Go Phetch - Multi Cuisine Order and Delivery Mgmt Facilites and Marketplace for local Ethnic Food Providers in Brooklyn (Coming to NYC HOU DMV  & ATL)

Phetch IT- Order for Delivery Food Groceries Alcohol & Laundry from your favorite Independent merchants in your Area(Coming to NYC HOU DMV and ATL)

Phetch Charg- Start an Electric Vehicle Charging Station at yur Urban locations Tdday