Burton Mills – China to Help Private Firms Raise Funds

Press Release (ePRNews.com) - TAIPEI CITY, Taiwan - Oct 24, 2018 - As growth in the world’s second-largest economy cools to a rate not witnessed since the financial crisis ten years ago, Burton Mills analysts say China has promised to launch more programs to support private businesses. The government will implement measures aimed at helping companies to raise capital.

Traditionally, commercial banks have preferred to offer loans to state-owned businesses as opposed to private enterprises which have always been seen as less worthy of credit.

Access to funds via loans for private companies was further reduced when China launched a campaign to combat a growing amount of corporate debt and off-balance sheet loans which have been the primary source of financing in the private sector.

Burton Mills economists say the obstacles facing companies in the private sector are one the reasons economic growth in China is slowing. GDP growth in the period from July to September slowed to its slowest rate since the financial crisis a decade ago.

This year, China’s central bank has made a concerted effort to encourage commercial banks to extend credit to private businesses but has not yet resorted to implementing large-scale credit stimulus amid concerns that it would set back progress made in reducing risky lending practices.

Burton Mills analysts say the PBoC has stated that it will offer initial capital to banks that would help to improve the credit profile of private businesses facing temporary liquidity issues but otherwise operating well.

Over the last several weeks, the Chinese government has pledged its support to private businesses. In China, the private sector contributes to almost two-thirds of China’s GDP and provides as much as 80 percent of jobs in urban regions.

Contact: Biz City News – Lane 167, Section 8, Minquan East Road, Neihu District, Taipei City, Taiwan 114. info@bizcitynews.com

Source : Burton Mills
Business Info :
Biz City News

You may also like this  


Or using ePRNews Account

Don't have an account ? Sign Up

Register New Account

Or form here

Already have an account ? Login

Reset Password

Already have an account ? Login


If you have any concerns regarding this press release, please contact the Author / Media Contact / Business of this press release. ePRNews is not resposible for the accuracy of the news posted and do not endorse, support any product/ services/ business mentioned and hereby disclaims any content contained in this press release.