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China unveils measures to better finance small enterprises

(Xinhua) Updated: 2014-07-25 10:10

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BEIJING -- The China Banking Regulatory Commission (CBRC) on Thursday rolled out specific measures to ease financing thirst for small and micro enterprises.

The CBRC asked financial institutions to properly set loan terms for small and micro enterprises in order to avoid a mismatch between loan term and operating cycle.

The commission also asked banks to diversify loan products to better meet enterprises' financing needs and reduce their repayment burdens.

In addition, the CBRC told banks to facilitate loan renewals for eligible small and micro enterprises with such needs.

These measures came shortly after Premier Li Keqiang pledged to take various steps to give more financing support to the real economy while keeping credit growth at a proper level.

It is usually much harder for China's small and micro enterprises to get bank credit as they are deemed as riskier than big companies.

Money crunch hindered the development of many enterprises and some turned to expensive private lending, which raises their financing burdens.

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