(ATF) China will focus on improving financial services to micro, small and medium-sized enterprises (MSMEs) in an effort to ensure their sound development, according to a State Council executive meeting on Wednesday.
The meeting, presided over by Chinese Premier Li Keqiang, said that special local government bonds will be allowed to support medium- and small-sized banks in replenishing capital.
Local governments should prioritise support for SMSEs that are capable of sustainable market-based operations, the council said. They should also keep a closer watch on banks’ role in the supporting the sector and on the uses of special bonds proceeds.
The move come amid growing concern that funds raised in bond sales and other stimulus measures are not filtering through to the real economy but been used by companies to boost their own coffers.
