The General Office of the Central Committee of the Communist Party of China ("CPC") and the General Office of the State Council have recently issued the Several Opinions on Enabling the Finance to Better Serve Private Businesses (the "Opinions").
According to the Opinions, all-round measures will be taken to realize equal treatment in financing for enterprises in different forms of ownership, and ensure that financial services offered to private enterprises are effectively improved, the financing scale steadily grows, and the financing efficiency is notably increased. The Opinions outline measures in four aspects. First, financial policies will offer stronger support, in an effort to make financial services offered to private enterprises more targeted and effective. Second, the construction of infrastructure for financing services will be stepped up, in a bid to address problems in information asymmetry and inadequate credit standing facing private businesses. Third, the performance assessment and incentive mechanism will be optimized to remove obstacles to financing attempts of private enterprises. Fourth, private enterprises will be actively supported to take advantage of financing to get out of troubles, which aims to eliminate liquidity risks and practically safeguard their lawful rights and interests. Among others, the Opinions call for efforts to carry out differentiated monetary and credit incentive policies, properly adjust the macroprudential evaluating parameters for commercial banks, and encourage financial institutions to increase credit loans issued to private enterprises and small and micro firms.