Financial Affairs

UPDATE 1-China to extend SME lending from large banks by 30% in 2021

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BEIJING, March 5 (Reuters) – China goals to extend small enterprise loans from massive business banks by greater than 30% in 2021, in keeping with a labor report launched on the annual parliament assembly on Friday.

The federal government will even permit small companies to defer principal and curiosity funds to information banks to decrease lending charges and help companies and industries affected by COVID-19, mentioned Premier Li Keqiang, who learn the work report in Beijing.

Massive business banks elevated loans to micro and small companies by greater than 50% final yr when the pandemic disrupted companies and closed shops for months.

Beijing will even strengthen supervision of monetary holding firms and monetary know-how to make sure that innovation follows laws, Li mentioned. It additionally goals to hurry up the method to advertise credit score data sharing.

In final yr’s labor report, the federal government mentioned improvements in fintech and large knowledge are anticipated to assist decrease the prices of monetary companies. The sentence was eliminated on this yr’s report.

China suspended the preliminary public providing of Alibaba’s Ant Group final November, and its monetary regulators urged the corporate to develop a evaluation plan to strengthen fintech regulation.

Reporting by Cheng Leng, Zhang Yan and Ryan Woo; Enhancing by Tom Hogue and Sam Holmes