A series of fiscal, tax and financial incentives were approved at a meeting chaired by Premier Li Keqiang to encourage financial institutions to provide needed capital to small businesses. Selected banks will be allowed to cut their reserve requirement ratios (RRR) and reduce some lending rates for small firms and agricultural businesses.

Earlier this month, the People’s Bank of China (PBOC) expanded the kinds of collateral it accepts for its medium-term lending facility, which is a move also aimed at helping businesses, particularly those in targeted sectors, gain more access to financing.