BEIJING: China will focus on improving financial services to micro, small and medium-sized enterprises (SMEs) 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 appropriately support small and medium-sized banks in replenishing capital. Local governments were urged to give priority to supporting small and medium-sized banks that are capable of sustainable market-based operations, thus enhancing their ability to support micro, small and medium-sized enterprises financially, according to the meeting. In addition, local governments should supervise improvements to the banks’ internal control mechanisms and strengthen oversight when utilizing special local government bonds. A draft regulation on ensuring that outstanding payments are made reliably to small and medium-sized enterprises (SMEs) was adopted at the meeting, as the country steps up efforts to help the SMEs tide over the current crisis to ensure stable economic fundamentals. – Agencies
