China steps up support for loans to private companies

BEIJING (XINHUA) – China has stepped up support for lending to the private sector, with new loans to private companies reaching CNY 5,000 billion (US $ 782 billion) in the first 10 months of 2021, according to China’s main banking regulator and insurance.

The amount represented 53.5 percent of total new business loans in the 10 months, up 1.8 percentage points from earlier this year, according to data from the China Banking and Banking Regulatory Commission. insurance (CBIRC).

Outstanding loans to private enterprises by banking financial institutions stood at CNY 53.1 trillion in September this year, CNY 15 trillion more than at the end of 2018.

During the same period, the number of private enterprises with outstanding loans increased from CNY 25.84 million to CNY 77.62 million.

The financing costs of private companies are falling. In the first three quarters of this year, the annual interest rate on new loans to private businesses was 5.3 percent, down 1.6 percentage points from 2018.

The CBIRC will continue to push for the implementation of measures to strengthen financial services for private companies and will urge banking and insurance institutions to continue improving their services, a spokesperson for the committee said.

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