China’s financial institutions have extended the repayment of principal and interest on loans of 1.3 trillion yuan (US$183 billion) for small businesses to between January 25 and May 15, said the China Banking and Insurance Regulatory Commission (CBIRC).
Banks have also provided re-lending funds of 1.9 trillion yuan to micro-, small- and medium-sized companies hurt by the Covid-19 outbreak, according to a statement issued by the CBIRC.
In a bid to help small businesses, China has adopted a slew of measures to reduce financing costs, such as letting them delay the repayment of principal and interest as well as encouraging lenders to increase credit lines.
In the next step, lenders across the country will allow small businesses to further delay the repayment of principal and interest and provide them with more comprehensive and targeted financial services, the statement said.
The Chinese government’s recent moves to support street vendors have received positive feedback from the public. Statistics showed that at least 27 areas including provinces and cities, such as Liaoning, Jiangxi, Gansu, Shanghai, Ji’nan and Zhengzhou, were encouraging road-side businesses.
The street-stall economy has always been a grey area in China’s urban economy. It helped mitigate pressure on employment, fuel development for tertiary industries, enliven the market and stimulate the economy.
A relaxed control on street vendors meets consumption demand, especially during the Covid-19 epidemic, said Ying Xiwen, a researcher at China Minsheng Bank’s think tank.
Road-side businesses provide necessities to shoppers and fulfills the requirements of epidemic control and prevention, said Zhang Zhixin, a deputy professor at the Capital University of Economics and Business.
On Thursday, the People’s Bank of China (PBoC) injected 70 billion yuan into the market through seven-day reverse repos at an interest rate of 2.2%, according to a statement on the website of the central bank.
The move aims to offset the impact of factors including government bond issuance and the maturity of reverse repos, and keep liquidity in the banking system at a reasonably sufficient level, the statement said.
A total of 240 billion yuan of reverse repos matured Thursday, resulting in a net withdrawal of 170 billion yuan from the market.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
NetEase and Huawei Technologies on Wednesday signed a strategic cooperation agreement to jointly develop the “cloud + AI + 5G + terminal” next-generation information technology, as well as “digital entertainment” innovation.
The new technology developed by the two sides will be prioritized for use in many games such as NetEase’s “Justice Online.” The new cloud gaming technology will effectively help large games cloud slim down and break down space limitations for gaming experiences.
Both companies will also look for an opportunity to jointly promote the development of games, music and education businesses.
China Merchants Property Operation & Service Co Ltd, a property arm of the China Merchants Bank, said it had signed a financial services agreement with China Merchants Group Finance Co Ltd for a period of two years.
China Merchants Group Finance will provide deposit, settlement, credit, foreign exchange and other financial services to China Merchants Property and its subsidiaries within its business scope, according to the two companies’ agreement.
China Merchants Property said it will use the new financial channel to reduce capital costs and financing risks, and provide strong protection for the company’s strategic transformation and long-term development.
The story was written by Xu Jiangshan and Nadeem Xu and first published at ATimesCN.com.