Shanghai unveils measures to boost private firms | govt.chinadaily.com.cn

Shanghai unveils measures to boost private firms

Updated: Jun 14, 2019 shanghai.gov.cn Print

Shanghai has issued a batch of 19 work measures to allow private enterprises to benefit from financial services, involving municipal financial, securities and insurance authorities as well as the People's Bank of China Shanghai branch.

The measures cover five aspects, namely promoting credit's supportive role, building a long-term and efficient credit mechanism, making full use of multiple layers of capital market, optimizing the financial business environment and enhancing coordination among departments.

The city has taken proactive steps in the matter, said a staff member with the Shanghai Bureau of Financial Work, like launching a 5-billion yuan (US$723 million) fund to resolve financing problems faced by listed companies.

The new measures, on the other hand, raise specific goals and are aimed for the long term, while integrating Shanghai's strengths.

A re-loan quota of no less than 10 billion yuan will be used to help micro- and small-sized private companies in scientific innovation and advanced manufacturing.

In the next three years, quality private companies will be provided with 20 billion yuan of loan on credit and guaranteed loan.

In the long run, private companies will be able to enjoy loan rates and conditions equal to those for state-owned companies.

Meanwhile, the accountability system will be gradually set up to boost efficiency of commercial banks in serving the private sector.

Shanghai, as a city with a complete financial market and a high density of financial institutions, will gather the units to offer support, utilizing direct financing methods like listing, bonds and equity investment to fuel the companies' growth.

The regional stock equity market will be piloted while more innovations will be launched through the Shanghai Pilot Free Trade Zone.

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