China's financial measures helping small businesses in the Mainland

News Image

MG News | June 21, 2018 at 12:50 PM GMT+05:00

0:00

China's newly-unveiled financial measures to ease credit strain on small- and micro-sized businesses (SMBs) are necessary for their development, experts said.

The country will roll out a series of measures to make financing more accessible and affordable for SMBs to reduce costs in the economy, the State Council decided at an executive meeting chaired by Premier Li Keqiang.

The government vowed to raise the relending and rediscount quotas for small companies and lower the relending interest rates for small businesses.

Dong Ximiao, senior researcher at Renmin University's Chongyang Institute for Financial Studies, said the SMBs need tailored policy support to develop, and financial institutions should continue to enhance services for them.

It was the third time for the State Council to discuss lowering of financing costs for small and micro businesses during its weekly executive meeting since March.

In China, SMBs contributed to 80 percent of employment, some 70 percent of patent ownership, over 60 percent of GDP and more than 50 percent of tax revenue, China's central bank governor Yi Gang said last week.

The new support package also includes targeted cuts in banks' reserve requirement ratios and other monetary policy tools.

"The tools are designed to ensure that SMBs have enough accessible credit, given a tightening total supply," said Zeng Gang, a financial researcher with the Chinese Academy of Social Sciences.

China promised to maintain its prudent and neutral monetary policy and keep liquidity sufficient and appropriate.

The country's flexible monetary policies allow commercial banks to lower liquidity costs and encourage lenders to offer SMBs financial services, Dong said.

APP

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg