The People's Bank of China, the country's central bank, will focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance, in a bid to spur high-quality development of the real economy, its governor Pan Gongsheng has said.
In an interview with China Central Television, Pan said China has continued to beef up its financial support in recent years, with inclusive loans to micro and small enterprises, green loans, medium- and long-term loans for high-tech manufacturing, and loans for small and medium-sized sci-tech enterprises all growing at an average annual rate of 20-30 percent in the past five years.
"Financing availability has been significantly improved while financing costs are at a historical low. Meanwhile, China's online finance and mobile finance have developed rapidly, playing an important role in improving transaction efficiency, reducing transaction costs, and enhancing financial inclusion, and becoming one of the highlights of the country's financial development," he said.
Data show that there are over 60 million inclusive credit-granting accounts for micro and small enterprises in China, covering about one-third of business entities. The loan approval rate for small and medium-sized sic-tech enterprises is close to 50 percent. In June, the weighted average interest rate of newly issued loans to private enterprises was less than 4 percent.
Pan said the People's Bank of China will further leverage the dual functions of monetary policy tools in both quantity and structure, and strengthen tool innovation to encourage financial institutions to focus on the five priorities. The central bank will encourage financial institutions to increase credit support for key areas and weak links, he said.
"The People's Bank of China will focus on key areas and weak links in major national science and technology projects and small and medium-sized sci-tech companies, give full play to the role of re-lending for sci-tech innovation and technological transformation, and work with relevant departments to cultivate a financial market ecology that supports sci-tech innovation, improve the venture capital mechanism of fund-raising, investment, management, and exiting, and guide financial capital to invest in early-stage businesses, invest in small companies, invest in the long term, and invest in hard technology," he said.
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China's central bank vows to strengthen support to real economy growth
![China's central bank vows to strengthen support to real economy growth](https://image.bastillepost.com/1138x/wp-content/uploads/global/2024/08/8390532_1723876696003_a.jpg.webp)
China's central bank vows to strengthen support to real economy growth