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China will encourage financial institutions to offer targeted
and diversified financial support to some small and medium-sized
enterprises in the manufacturing sector, according to a joint
statement by the industry and finance ministries, financial and
securities regulators and the central bank.
Small and medium-sized enterprises in key industrial sectors
will also be offered appropriate products for foreign exchange
hedging, the statement said.
Earlier on Tuesday, China's top economic planner announced an
extension of loan support tools for small businesses until the
end of 2024, vowing to expand credit for private firms and meet
their demand for land.
The flurry of initiatives to help to private businesses comes
after authorities vowed to make the sector "bigger, better and
stronger" after small businesses were squeezed during three
years of COVID curbs.
The private sector accounts for 60% of China's gross domestic
product and 80% of urban jobs.
Investors have been awaiting concrete stimulus measures as data
suggested the economy still struggled in July. Chinese stocks
closed down on Tuesday after a sharp rebound in recent sessions.
Private fixed-asset investment shrank 0.2% year-on-year in the
first half of 2023, in contrast to an 8.1% rise in investment by
state entities, highlighting weak private sector confidence.
(Reporting by Ellen Zhang and Ryan Woo; Editing by Jacqueline
Wong and Mark Potter)
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