The People's Bank of China today issued guidelines to increase financial support for small businesses including expanding their funding channels, improving the business environment and implementing appropriate tax policies.
The decision comes after the State Council pledged to direct more loans to small businesses and reduce the cost of financing them.
The lack of funding for small Chinese enterprises has been a challenge for the government in Beijing, with larger state enterprises having greater access to funds at lower prices, although they are generally less efficient than small private firms.
The announcement said Friday that it will increase its relending and rediscount quotes by 150 billion yuan ($ 22.96 billion) to support small businesses and the agricultural sector.
