Beijing has stepped up its lending support to the private sector, with new lending to private companies reaching five trillion yuan (about $ 782 billion) in January-October 2021, according to the Regulatory Commission. China for the Banking and Insurance Companies Sector (CBIRC).
These amounts correspond to 53.5% of the total corporate loans for the same ten months, while they are increased by 1.8% from the level of corporate loans at the beginning of 2021, as shown by the same data.
Lending to private companies by the banking sector was recorded at 53.1 trillion yuan by September, an increase of 15 trillion yuan, compared to the corresponding level of lending at the end of 2018.
During the same period, the number of private companies borrowing from banks increased from 25.84 million to 77.62 million.
Lending costs of private companies decreased. In the three quarters of 2021, the annual interest rate on new loans to private companies was recorded at 5.3%, reduced by 1.6% from the level of lending rates in 2018.
CBIRC will push further to implement measures to strengthen financial services to private companies, urging banks, as well as insurance companies and service providers to continue to improve their service delivery, according to a representative of the same committee.
$ 1: 6.39 yuan
SOURCE: AMPE
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Source From: Capital
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