China's central bank chief holds meeting with private firms to address financial support
Published: Aug 04, 2023 12:16 AM
A view of the PBC building in Beijing Photo: VCG

A view of the PBC building in Beijing Photo: VCG

The head of China's central bank on Thursday held a meeting with representatives from several private firms to hear about suggestions and study policy measures to strengthen financial support for the private sector, signaling more support for private firms amid Chinese policymakers' swift actions to support various key aspects of the Chinese economy.

Also on Thursday, Li Yunze, head of the National Financial Regulatory Administration, met with Meng Wanzhou, rotating chairperson and CFO of Huawei Technologies to discuss matters, including financial support for high-level technological self-reliance, digital transformation of the financial industry, and innovation in the application of information technology in the financial industry, according to the top financial regulator.

Pan Gongsheng, governor of the People's Bank of China (PBC), presided over the meeting, which was attended by representatives from a number of private firms, including dairy producer Yili Group, aluminum producer Hongqiao Group and real estate developer Longfor Group, according to a statement. Heads of some financial institutions also attended the meeting.

At the meeting, representatives from the private sector  commended the declining financing cost of doing business and solid financial support, but also expressed the need for further expanding financing channels through bonds.

Pan said that the private economy is an important component of the development of the socialist market economy and an important force to promote economic and social development. 

"It is the duty of the financial sector to support the development of private enterprises," he said, noting that the PBC will further guide more financial resources to flow to the private economy.

The central bank will also formulate and release guidance documents for financial support to private enterprises, and promote commercial banks to optimize their internal control management systems. It will also support local governments to pay money owed to private firms, promote the expansion and increase of private enterprise bond financing support instruments, and strengthen the financial market's support for the development of private enterprises, Pan said. 

Pan further called for financial institutions to actively create a favorable atmosphere to support the development and growth of the private sector, better understand the financial needs of private enterprises, and respond to the concerns and demands of private enterprises.

The PBC meeting on Thursday came just two days after Chinese ministries on Tuesday issued 28 measures to support the private economy, vowing to provide fair access for private firms to participate in major national projects and technological undertakings, increasing financial and land support, and strengthening legal protection of the private firms.