Financing difficulty easing for small and micro businesses in China
By Zhang Xinyuan
["china"]
The financing difficulty faced by small and micro businesses in China is easing recently because of the targeted cuts to required reserve ratios and the expansion of inclusive finance, according to Chen Yulu, the deputy governor of the People's Bank of China (PBOC).
During the first season this year, the loan balance to small and micro businesses increased 19.1 percent compared to the same period last year, while the rate of growth increased 3.9 percentage points compared to the end of 2018, Chen said at a two-day forum at Tsinghua University themed financial supply-side reform and opening-up this weekend.
The loan balance provided to enterprises increased by 6.7 percent year on year, with the growth rate increasing one percentage point.
The new lending rates to small and micro businesses averaged 5.93 percent on March, 0.19 percentage point lower, according to Chen.
By the end of April, private enterprises bond financing tools issued 87 financing tools, and supported 56 private companies. For the first month this year, private enterprises issued bonds worth 2.953 trillion yuan, considerably higher than in the same period last year.