China aims to increase big bank lending to small businesses by more than 40% in 2022 | Investment News

BEIJING/SHANGHAI (Reuters) – China is aiming to increase small business lending by major commercial banks by more than 40% this year, Premier Li Keqiang said at the annual parliament meeting on Saturday.

The government will urge financial institutions to further cut lending rates, reduce fees and promote medium- and long-term lending to the manufacturing sector, Li said, reading his work report.

China’s big five banks – Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications – each reported growth of more than 30% in loans to small businesses in 2021, said public broadcaster CCTV in January.

CCTV said the highest growth was 53.15% by a bank it did not name.

China has been working to improve financial support for micro and small businesses, which it sees as key contributors to stabilizing jobs and people’s livelihoods.

The government will prioritize employment through fiscal and financial policies to strengthen support for enterprises to maintain and increase jobs, Li said. financial stability to guard against systemic risks, he said.

Li also said China will fully implement a registration-based IPO system this year.

(Reporting by Zhang Yan, Samuel Shen and Ryan Woo; Editing by Kim Coghill and William Mallard)

Copyright 2022 Thomson Reuters.

James V. Hayes