Recently, eight departments, including the People’s Bank of China, jointly issued the Notice on Strengthening Financial Support Measures to Boost the Development and Expansion of the Private Economy (the Notice for short) and introduced 25 specific measures to support the private economy.
The Notice clarifies the purposes and priorities of financial services for private enterprises. Quantitatively, financial support for private enterprises will be intensified, and the proportion of loans to private enterprises will be raised by setting annual objectives for serving private enterprises and increasing the weight of services for private enterprises in performance assessment. Structurally, the support for key fields, such as scientific and technological innovation, “specialization, sophistication, distinctiveness and innovation”, green and low-carbon, and industrial foundation reconstruction projects, as well as private micro, small and medium-sized enterprises, will be increased.
The Notice emphasizes that it is necessary to increase foreign exchange facilitation policies and service supply based on the characteristics of private enterprises’ financing needs and support private enterprises to “go global” and “bring in” by improving the convenience of current account receipts and payments, optimizing facilitation policies for cross-border investment and financing, and enhancing characteristic services for cross-border financial foreign exchange.