China pledges strong financial support for high-quality growth

China will provide robust financial support for the country's high-quality economic development, Li Yunze, head of the National Financial Regulatory Administration (NFRA), said Monday.

Established in May 2023, the NFRA oversees the financial industry except for the securities sector.

Li, speaking to reporters after the country's annual national legislative session, highlighted the role of financial services in propelling growth. 

He pointed to improved efficiency and wider coverage, reflected in a 1.3 trillion yuan ($180 billion) year-on-year increase in yuan-denominated loans in 2023. Key areas like the high-tech sector and green initiatives witnessed loan growth exceeding 20 percent.

The downward trend in financing costs in China has continued, with loan interest rates reaching historic lows. Homebuyers are estimated to save roughly 170 billion yuan annually in interest thanks to last year's reduction in first-home mortgage rates.

To bolster high-quality economic development, the NFRA pledged to focus on key areas including supporting innovation, consumption and small businesses.

The administration will provide unwavering support for scientific and technological innovation. It is exploring the use of financial asset investment companies as platforms to expand equity investment pilots, further boosting support for science and technology enterprises.

The NFRA aims to stimulate effective demand. Initiatives to make car ownership more accessible are being considered, including exploring reduced down payments for car loans and optimizing the pricing mechanism for new energy auto insurance.

The administration is also launching a special initiative on inclusive finance to increase the volume and availability of small and micro loans.

Separately, Li reassured the public that financial risks are generally under control and China possesses ample resources to address any potential issues.