China pledges to strengthen financing support for private enterprises

China’s central bank and four other authorities vowed last Friday to tackle the financing challenges facing private enterprises, following a rare symposium between President Xi Jinping and the country's prominent entrepreneurs last month.

The People's Bank of China, along with All-China Federation of Industry and Commerce, National Financial Regulatory Administration, China Securities Regulatory Commission and the State Administration of Foreign Exchange, held a meeting on financial support for the high-quality development of private enterprises on February 28.

As long as the inflationary pressure in China is not significant, the financing costs of private enterprises will be ensured to remain at a relatively low level over a relatively long period of time, media outlet Yicai reported on Sunday, citing Pan Gongsheng, governor of the People’s Bank of China. Pan reiterated the nation will implement moderately loose monetary policy and maintain ample market liquidity, according to Yicai.

Representatives from the Shanghai Stock Exchange and financial institutions, including Industrial and Commercial Bank of China (1398) and the People's Insurance Company of China (1339), also attended the meeting.

ICBC plans to provide no less than 6 trillion yuan (HK$6.41 trillion) in financing for private enterprises over the next three years, chairmen Liao Lin said at the meeting, according to mainland media.

The governments also requires financial institutions to strengthen their service capabilities and further streamline diversified financing channels, including equity, bonds, and loans, for private enterprises.

STAFF REPORTER and BLOOMBERG