CHINESE authorities have rolled out a new set of measures to pump more financial resources to help the country’s private sector, the latest effort by the government to help spur growth of the country’s private firms.

Eight authorities, including the People’s Bank of China and the National Financial Regulatory Administration, said yesterday in a joint statement, which outlined 25 measures aimed at bolstering financial support for China’s private economy, efforts should be made to “unblock” financial channels such as loans, bonds and shares.

Banking and financial institutions should set annual targets for services to private businesses, raise the weight of related businesses serving private enterprises in lenders’ performance reviews and gradually increase the proportion of loans to private enterprises.

Domestic banks are also encouraged to increase their tolerance for nonperforming loans of private enterprises while offering more support for first-time borrowers and establish and improve relevant loan exemption mechanisms.

Regulators will also support banking institutions to issue financial bonds to raise funds to lend to private businesses, according to the statement.

Banks are required not to stop or withdraw loans to private businesses and to reasonably meet the financing needs of the property sector, authorities said. The property sector accounts for a quarter of China’s economic activity.

China should back the listing, mergers and acquisitions, and reorganization of private firms, including supporting qualified firms in going public overseas, according to the statement.

State agencies have in recent months unveiled a flurry of initiatives to support private businesses after authorities vowed to make the sector “bigger, better and stronger,” in a bid to shore up an economic recovery.

Government efforts to support the private sector also included the establishment of a special bureau within the top economic planner and tax and fee support for small businesses.

Private firms account for 60% of China’s gross domestic product and 80% of urban jobs. (SD-Agencies)