China's Premier Li Keqiang said yesterday the country will not resort to strong monetary stimulus, but instead it will take targeted policy steps to support private companies and smaller businesses when it was reported that China's securities regulator has urged mutual fund houses to support cash-strapped listed firms.
Li reiterated that it would not resort to forceful stimulus to prop up the economy, while China will push for larger tax cuts, adding that it would help small firms facing funding difficulties and widen access for private firms in infrastructure, he said at a joint news conference in Beijing.
Meanwhile, the China Securities Regulatory Commission has recently issued a notice to fund managers, exhorting them to use their own capital, or raise public money, to provide liquidity support to listed firms with prospects, the newspaper said.
The People's Bank of China will step up funding support for private firms including developing an equity financing tool, its chief, Yi Gang, said yesterday, the latest step to support a slowing economy pressured by a trade dispute with the United States. China's central bank also said bubbles in blockchain financing are apparent, and that the government should strengthen supervision to fend off financial risks.