Two sessions 2021: China’s banks to increase lending to small businesses by 30 per cent
- Beijing also plans to further strengthen regulation of fintech, financial holding companies
- Fintech firms have been a major lending source to small businesses in China
China plans to increase the number of “inclusive” loans offered by its biggest banks to micro and small businesses by more than 30 per cent in 2021, even as it continues to enact new lending rules and increase its scrutiny of the nation’s financial technology (fintech) industry.
As part of the government’s latest five-year plan, Premier Li Keqiang said banks would be encouraged to increase credit loans and first-time loans and would provide “targeted support” for companies and sectors that continue to be affected by the fallout from the coronavirus pandemic.
“We will strengthen regulation over financial holding companies and financial technology to ensure that financial innovations are made under prudent regulation,” Li said as part of the government work report to the National People’s Congress on Friday. “We will improve the mechanism for managing financial risks, see responsibilities are fulfilled by all the stakeholders, and ensure that no systemic risks arise. Financial institutions must serve the real economy as they should do.”
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China kicks off antitrust probes into Alibaba over alleged monopolistic practices
