At a State Council executive meeting on July 31, Premier Li Keqiang urged faster development of the financing guarantee industry.

Premier Li said financing guarantee is a “golden key” to resolve financing difficulties for small and micro businesses and agriculture sector and promote mass entrepreneurship and innovation.

As the economy still faces a downward pressure, the employment issue cannot be ignored, said the Premier, adding that tackling the financing difficulties for small and micro businesses and agriculture sector is critical to promote entrepreneurship and employment.

The meeting decided to explore a sustainable cooperation model that involves government, bank, and financing institutions so as to make the best use of government finance and attract more credit fund.

He urged to improve appraisal system of financing institutions, set a sound credit rating system and continue the effort to regulate the financing guarantee industry.

At a video conference in December, Premier Li called for a stronger policy support for financing guarantee institutions and financing re-guarantee institutions to provide a broader range of services and lower the financing costs for small and micro businesses and agriculture sector.

He also said that financing guarantee is an important method to ease the financing difficulties of small and micro businesses and agriculture sector, which plays a significant role in stabilizing the economic growth, economic restructuring, and improving people’s livelihood.