BEIJING (Reuters) - China hopes to boost private investment by improving financial services for small enterprises, its powerful state planner said in a document on Wednesday.
Private investment has dropped to record lows and grew only 2.1 percent in the first eight months of the year. A member of China's central bank monetary committee attributed a slowing economy and industrial overcapacity to fewer investment opportunities.
Nearly half of the 26 policy measures issued by the National Development and Reform Commission (NDRC) to boost private investment aim at improving financial services.
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They include encouraging policy and development banks to provide credit support for qualified small- and micro-firms, and setting up investment funds in key areas to boost support for companies still in the initial growing stage.
To ease financing pressures for small- and micro-firms, China will set up a national financing guarantee fund and push for full coverage by provincial credit re-guarantee institutions, the planner said.
Financing channels for private enterprises will also be expanded as qualified companies will gain support in bond issuance, initial public offerings, and refinancing endeavors.
China will also hasten the pace of approvals for private banks in a case-by-case fashion, it added.
(Reporting by Yawen Chen and Nicholas Heath; Editing by Clarence Fernandez)