China's Guangzhou empowers private sector with finance and technology

Guangzhou City in South China's Guangdong Province is harnessing the power of finance and technology to drive the high-quality growth of its private economy.

Under a recent nationwide policy push, this bustling city is taking a diverse approach, with local financial institutions spearheading the drive to provide enhanced financial services.

China's central bank, along with other key government agencies, has unveiled an ambitious set of 25 measures aimed at amplifying financial support for the nation's private sector. This initiative, which includes diversifying financial channels for private businesses, marks a critical effort to invigorate the private economy amidst ongoing economic challenges.

For example, traders operating in the Huangsha Seafood Trading Market in Guangzhou's Liwan District face a challenging environment of dampness and salinity, causing them to struggle with mobile payments and highlighting an acute need for tailored financial tools.

In response, Guangzhou's banking sector has introduced advanced and user-friendly trading platforms, coupled with accessible payment and settlement systems. This fusion of financial savviness and technological prowess is fostering the development of intelligent market systems, as noted in a report by the Industrial and Commercial Bank of China.

Going beyond banking efforts, Guangzhou has addressed critical issues like loan accessibility and high risks associated with small and micro businesses.

Through a strategic mix of policies, the city is crafting a comprehensive financial service system, meticulously aligned with the demands of the private economy and the unique needs of small and micro enterprises.

As of October 2023, 30 cooperative banks in Guangzhou City have extended over 180 billion yuan ($25.22 billion) in inclusive credit loans, benefiting about 180,000 small and micro business entities, marking a substantial stride in supporting private sector growth, official data showed.

(Cover via CFP)