China is set to bolster its high-quality economic development with a significant financial commitment, announced Li Yunze, head of the National Financial Regulatory Administration (NFRA), on Monday.
Established in May 2023, the NFRA oversees the financial industry excluding the securities sector. Speaking after the annual national legislative session, Li emphasized the pivotal role of financial services in propelling China’s growth.
In 2023 alone, yuan-denominated loans surged by 1.3 trillion yuan ($180 billion) year-on-year, with the high-tech sector and green initiatives experiencing loan growth exceeding 20 percent. Additionally, the sustained decline in financing costs has led to historically low loan interest rates, allowing homebuyers to save approximately 170 billion yuan annually through reduced first-home mortgage rates.
To further support high-quality economic development, the NFRA outlined several key focus areas:
- Innovation Support: The administration will back scientific and technological advancements by exploring financial asset investment companies as platforms to expand equity investment pilots, thereby enhancing support for science and technology enterprises.
- Stimulating Demand: Initiatives to make car ownership more accessible are under consideration, including reduced down payments for car loans and optimized pricing mechanisms for new energy auto insurance.
- Inclusive Finance: A special initiative is launching to increase the volume and availability of small and micro loans, ensuring that small businesses and consumers have ample access to financial resources.
Li also reassured the public that financial risks remain under control and that China possesses ample resources to address any potential issues, ensuring a stable and resilient economic environment.
Reference(s):
China pledges strong financial support for high-quality growth
cgtn.com
