ANNOUNCEMENT 01 Sep 2021

September 1st, 2021 - The Chinese government announced an increase in financial support to domestic SMEs.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

PRC State Council, September 1st, 2021. (李克强主持召开国务院常务会议 部署加大对市场主体特别是中小微企业纾困帮扶力度 加强政策储备做好跨周期调节等)
http://www.gov.cn/premier/2021-09/01/content_5634753.htm?mc_cid=cc5189ae72&mc_eid=2338d5ecc7

Inception date: 01 Sep 2021 | Removal date: 31 Dec 2021

State loan

On September 1st, 2021, the Chinese State Council published a press release (hereafter, 'Release'), which confirmed comments made earlier that day in a speech given by prime minister Li Keqiang.

The Release stated that CNY 300bn (USD 46.4bn) of new funding would be made available for state loans to domestic SMEs through China's relending system, whereby the State provides funds to regional financial institutions for short-term (up to one year) lending to SMEs at favourable interest rates stipulated by the State.

They are primarily targeted at firms in the agriculture sector, however, in theory any SME that plans to use the funds for purposes 'in line with national policy' may apply for the loans.

Previous announcements in 2021 on the increase in relending budgets have been more specific in the target of the funding being agricultural firms - please refer to state acts in the 'related' section for more info on these.

As the relending budget is announced in terms of its annual amount, this intervention is considered in effect until the end of 2021.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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