Business
12:26, 23-Oct-2018
China's central bank to offer more funds for small firms
Updated
12:00, 26-Oct-2018
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China's central bank says it will boost relending and rediscount quotas by 150 billion yuan (21.7 billion US dollars) to help the financing needs of small enterprises.
This is in addition to another 150 billion yuan worth of similar quotas that were issued in June. Monday's notice also says there will be guidelines for corporate bond issues.
These include using tools like Credit Risk Mitigation and providing initial funding to institutions that can help enhance the credit profile of private companies that are operating normally, but face temporary liquidity difficulties.
In recent weeks, the government has reaffirmed its support for private enterprises. On Monday, the State Council announced it would support bond financing by private firms, adding that the central bank will provide funding to facilitate this.
The private sector accounts for 60 percent of China's GDP and 80 percent of urban jobs.