Arab Today, arab today china to incentivize small firms
Last Updated : GMT 14:02:48
Arab Today, arab today
Arab Today, arab today

China to incentivize small firms

Arab Today, arab today

Arab Today, arab today China to incentivize small firms

Beijing - XINHUA

China\'s central bank will continue to implement prudent monetary policies and increase financial incentives for small firms, said its chief, Zhou Xiaochuan, on Monday. Zhou said at a conference on improving the financial environment for small firms that China will provide financial support to small firms as part of efforts to sustain stable economic growth. Small and micro-sized firms serve as a significant channel for creating jobs, a major platform for the growth of entrepreneurship, and an important force of scientific innovation, according to Zhou. \"Financial support to small firms\' development will lead to a stable and relatively fast economic growth,\" said the official at the conference. Zhou said China will keep a reasonable credit supply to provide a good financial environment for small and micro-sized firms, while lending to such enterprises should grow at a rate no lower than the average loan growth of the country\'s banks. China will steadily push forward market-oriented interest-rate reform and the establishment of a deposit insurance system, he stressed. Official data showed that small and micro-sized enterprises create about 80 percent of the country\'s jobs, but they usually have difficulty in securing bank loans, as Chinese banks prefer to lend to larger companies, especially state-owned enterprises.

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