Chinese financial regulators recently announced their plans for supporting the country’s private enterprises.
The People’s Bank of China (PBOC), China’s central bank, said it would assist in the setting-up of private enterprises’ financing tools in issuing corporate bonds.
The mechanisms will be specialized in bond issuance for competitive private enterprises which have encountered chills in their financing.
“China’s central bank is playing a leading role in supporting private enterprises by providing initial funds,” said Ming Ming, an analyst at the CITIC Securities.
At the same time, the central bank encourages commercial banks, insurance companies, and other institutions to meet private enterprises’ bond financing demands by using their credit risk control tools.
The Securities Association of China (SAC) on Monday rolled out a wealth management plan composed of 11 securities companies to help promising firms in resolving pledge of stock rights issues.
China will help develop the private economy by supporting companies listed on the ChiNext, China’s Nasdaq-style board for growth enterprises, and all sorts of wealth management institutions to raise funds as well as facilitate private companies in issuing bonds, especially small and medium-sized enterprises in issuing high-yield bonds and other debt tools, said the China’s Securities Regulatory Commission (CSRC).
Liu Shiyu, chairman of CSRC, said the private economy is one of the most significant components of China’s economy. “We will keep supporting private enterprises,” Liu said in a recent interview.
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