China’s central bank will increase support for private companies as part of measures to strengthen the economy, while easing pressure on technology companies, said Guo Shuqing, Communist Party head of the People’s Bank of China, according to the state media.
Monetary policy in 2023 will focus on expanding demand, especially personal consumption, Guo told state-run CCTV on Sunday (8), reaffirming previous official statements.
Chinese leaders pledged to increase support for the world’s second-largest economy, which was hit hard by Covid-19 lockdown measures last year, as well as slowing global demand. After the lockdown was lifted in December, the country is now grappling with a wave of infections.
Financial policy should be coordinated with fiscal and social measures to boost the income of low- and middle-income groups, as well as groups hit by Covid-19, said Guo, who is also chairman of the China Banking and Insurance Regulatory Commission, in an interview with CCTV.
“Prudent monetary policy will be precise and vigorous. This requires a focus on expanding effective demand and deepening supply-side structural reforms,” said Guo.
Chinese financial institutions should treat all types of companies fairly, he said, promising that monetary policy will strengthen support for private companies, maintain credit growth and reduce financing costs for companies.
Authorities intend to expand funding channels for private companies by supporting their issuance of stocks and bonds, Guo said.
China will also promote the solid development of online platform companies, Guo said, adding that the financial business rectification of 14 platform companies has been “basically completed”, while some remaining issues need to be resolved. Guo did not name the companies.
Since the end of 2020, Beijing has tightened its grip on the country’s fintech giants, demanding that they go back to basics after years of breakneck growth.
Authorities will adopt “normalized regulation” later and encourage platform companies to operate in a compliant manner, CCTV said.
Source: CNN Brasil
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