China issues guideline on reinforced financial support to private enterprises

BEIJING - China has published a guideline on strengthening financial support to private entities.

The guideline was issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.

According to the document, differentiated monetary and credit policies should be adopted, and financial institutions are encouraged to lend more loans to private enterprises and small and micro businesses.

Private companies, meeting certain requirements, could expand direct financing and are supported to issue corporate bonds. Financial institutions should increase their investment in corporate bonds issued by private businesses, said the guideline.

The guideline also calls for establishing information service platforms. Credit agencies are encouraged to offer credit products and services to private entities.

The government will actively foster the angel investors' and venture capital companies that invest in private companies aiming at technology innovation, said the document.

The guideline suggests to effectively raise the accessibility of financing for private enterprises. The shares of newly issued corporate loans to private companies should be further lifted, and private companies should not be discriminated against when applying for loans.