Keywords from the last six months of State Council executive meetings: financing for small and micro-sized enterprises

Premier Li Keqiang mentioned in the Government Work Report this year that efforts should be made to solve the problems of difficult and expensive financing for small and micro-sized enterprises.

Over the past six months since the new term of government took office, State Council executive meetings have constantly focused on small and micro-sized enterprises and taken various measures such as setting up a state financing guarantee fund and providing inclusive finance services. The Premier demanded that financing costs for small and micro-sized enterprises be truly reduced.

State Council executive meeting on March 28

Decisions were made to set up a state financing guarantee fund and solve financing problems for small and micro-sized enterprises, agriculture, rural areas and farmers.

Quotes from the Premier:

-I am concerned a lot about one thing this year — that is to solve the financing problems for small and micro-sized enterprises. The finance sector should innovate mechanisms and modes, and truly implement policies to reduce financing costs for small and micro-sized enterprises.

-We will not only try to meet the three preliminary estimates. We also need to check whether the financing costs for small and micro-sized enterprises are truly reduced. The results shall be examined by a third party.

-Currently, all of the five State-owned commercial banks have set up inclusive finance departments. The key for them is to play their roles. Related departments should press ahead with implementation of the fund and introduce supporting policy measures. The healthy development of small and micro-sized businesses will guarantee the growth of employment and social wealth, allowing society to become more harmonious and stable.

State Council executive meeting on April 25

It was decided to supervise and evaluate the inclusive finance services of banks, to ensure financing costs for the real economy go down.

Quotes from the Premier:

-Business departments for inclusive finance have been generally established. Next we will establish a stimulating and restrictive mechanism to promote the inner driving power of enterprises.

State Council executive meeting on June 20

Decisions were made to make financing more accessible and affordable for small and micro-sized businesses to promote cost-cutting in the real economy.

Quotes from the Premier:

-Banks should change their mindset and follow the economic and industrial trends, to provide better services for small and micro-sized enterprises.

-Targeted measures should be in place to solve financing difficulties and lower costs for small and micro-sized businesses, to stabilize market expectations amid uncertainties in international trade.

-Big banks will not have a future without serving small businesses, which should be embedded into every aspect of the banks. To open up wider, the first step for the financial industry is to reform itself.

State Council executive meeting on Aug 22

Decisions were made to promote implementation of policies to ease financing difficulties for small and micro-sized enterprises.

Quotes from the Premier:

-Currently it is important to listen and respond to the appeals of market players, and promote the implementation of measures to stabilize employment and revive businesses.

-The government will accelerate fee reduction, and make loans more accessible and affordable for small and micro-sized enterprises. Both are positive signals to stabilize market expectations.