China to step up support for small and private firms: State Council

World
Europe

China will perfect its inclusive finance system while working out more mature targeted reserve requirement cuts, as a way to "beef up vitality and development confidence of main market players, especially private and small enterprises," according to the country's cabinet meeting presided over by Premier Li Keqiang.

It was noted at the conference that a fair and convenient business climate should be fostered, treating all on the same footing and allowing for suggestions from enterprises under the guidance of "competitive neutrality."

For private investment in areas of resource development, transportation and municipal utilities, the limitations for minimum registered capital and shareholding structure will all be removed.

Greater efforts should be made to have tax cuts and fee reductions while improving financing services. Meanwhile, inclusive finance systems and targeted monetary tools will be perfected to bolster asset management products and insurance funds, in a bid to resolve risks from pledged shares for listed private companies.

The government also made a commitment to accelerate listing and refinancing verification for private companies.

At the meeting, decisions were made to cancel permits for opening bank accounts by firms and speed up the review for intellectual property.

The meeting also stressed efforts to further "simplify procedures, decentralize powers, enhance supervision, and optimize public services."

China has been in the pursuit of a lower tax burden and increased support for small firms and private enterprises to inject new vigor and vitality into the economy.