China encourages some firms to tap foreign debt to boost real economy

[July 23, 2024]  BEIJING (Reuters) - China's top economic planner said on Tuesday it will support high-quality companies to borrow medium- and long-term foreign debt, to support the development of the real economy, according to an official statement published online.

Cars travel past a display showing Shanghai and Shenzhen stock indexes near the Shanghai Tower and other skyscrapers at the Lujiazui financial district in Shanghai, China February 5, 2024. REUTERS/Xihao Jiang/File Photo

These companies should have a prominent position in an industry, have good credit and play a leading role in promoting the "high-quality" development of the real economy, the statement said.

The National Development and Reform Commission (NDRC), the state planner, said it would also guide companies to use the foreign debt to facilitate the implementation of major national strategies and build the country's modern industrial system.

China on Sunday unveiled a policy document following a key meeting of the Communist Party, known as a plenum.

The plenum reasserted China's quest for "new productive forces", a term President Xi Jinping coined last year that envisions scientific research and technological upgrades of the country's sprawling industrial complex.

"Provincial level development and reform departments can provide services based on the local situation, actively support and guide high-quality enterprises in the region to stabilize their development expectations, enhance growth confidence and reasonably carry out the medium- and long-term foreign debt financing," the NDRC statement said.

(Reporting by Ellen Zhang and Kevin Yao; Editing by Jacqueline Wong)

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