China to Enhance Financial Services for Smaller Businesses

In order to encourage financial institutions to better serve micro and small firms, the State Council decided at its executive meeting on 21 April to raise the weighting of inclusive finance to no less than 10% in the integrated performance evaluation of the branches and subsidiaries of financial institutions in the banking sector to increase lending to smaller businesses. At the same time, the regulatory requirements for the provision coverage ratio of small and medium-sized banks will be lowered by 20 percentage points in a phased manner to release more credit resources and improve their ability to serve small and micro firms.

On the other hand, in order to ease the rental burden of micro and small firms and individually-owned businesses, the meeting called for a three-month rental waiver in the first half of the year for micro and small firms and individually-owned businesses in the service industry who are tenants of state-owned properties. State-owned enterprises, especially central enterprises, universities, research institutes and other enterprises and institutions, should take the lead. Landlords who reduced or waived their rent are eligible for reduction or exemption of real estate tax and urban land use tax in the current year according to regulations. State-owned banks will be encouraged to extend pledge loans at concessional rates and other forms of support to these landlords according to their needs. These policy concessions apply equally to non-state properties that offer rental reduction or waiver.  

Source: State Council