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在线翻译:
szdaily -> Business/Markets -> 
Small firms given financing support
    2018-10-24  08:53    Shenzhen Daily

THE central bank said late Monday it will boost relending and rediscount quotas by 150 billion yuan (US$21.6 billion) to meet the financing needs of small enterprises, as part of the government’s measures to strengthen private sector support.

This is in addition to another 150 billion yuan worth of similar quotas that were issued in June.

The People’s Bank of China will also provide guidelines for corporate bond issues, the bank said on its website.

Earlier on Monday, the State Council unveiled plans such as easing the tax burden and implementing a list to limit foreign investments by end-March to help the private sector, a key pillar of China’s economy.

The central bank reiterated government promises to offer “unwavering” support for the private sector.

The new bond support tool isn’t just a central bank policy, but a national-level policy, according to Iris Pang, China economist with ING Groep NV in Hong Kong. “Some companies are going to have payment difficulties on their existing bonds or existing loans,” and the new policy “should help avoid default risk in China,” she said.

There should be some pilot cases within the next month or so, according to Pang.

The central bank will grant initial funding to financial institutions to offer credit-risk mitigation tools and other credit enhancements that help companies in the private sector sell bonds, according to the statement.

The quota increase should be a lifeline for small and medium-sized enterprises, Pang said. “For the SMEs, they are more likely to be exporters, so they are affected more directly by the trade war.”

“If the efforts are sustained, they will certainly be positive to everyone’s confidence in long-term reforms, even though they may not lead to a quick, short-term growth rebound,” said Yao Wei, chief China economist at Societe Generale SA in Paris.

China’s central bank will initially provide funds to professional agencies for them to support bond issuance by private companies, the State Council said after a meeting led by Premier Li Keqiang on Monday.

The central bank will focus its support on companies “suffering temporary difficulties but which have market share, prospects and technological competitiveness,” it said in the statement on its website.(SD-Agencies)

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