A new Macro-Prudential Management Department has been set up to replace the original Monetary Policy Department. Photo: Supplied


The People’s Bank of China (PBoC), China’s central bank, will beef up financial support for small and micro enterprises through new monetary policy instruments. This comes amid China’s efforts to stimulate the real economy, according to two circulars jointly released by the PBoC and four other regulators Tuesday.

Starting on Monday, the PBOC will offer a special re-lending quota of up to 400 billion yuan (US$56.2 billion) to purchase 40% of inclusive loans to small and micro businesses issued by local banks from March 1 to December 31.

It will help banks lower their debt costs directly and replenish their liquidity, said Li Qilin, chief economist of Yuekai Securities. Small firms will enjoy more credit support, Li added.

As part of the loan extension support tools, banking institutions are encouraged to enrich credit products and lower the credit loan interest rate, according to one of the circulars.

The PBOC said that small businesses are allowed to apply to defer their inclusive loan repayment maturing by end-2020 to March 31, 2021, with penalty payments exempted.

As the country works to develop new monetary policy instruments that can directly stimulate the real economy, it is crucial to take steps to ensure enterprises can secure loans more easily and promote the steady reduction of interest rates, said this year’s government work report.

Authorized economic operator

China’s top customs authority has released new data on its authorized economic operator (AEO) credit system, which the authority is employing to enhance the country’s foreign trade and strengthen credit supervision over enterprises.

The AEO system, initiated by the World Customs Organisation, aims at facilitating customs clearance through the authentication by customs of trade firms with a high level of law compliance, credit status and safety.

The new data from the General Administration of Customs (GAC) shows that, as of the end of May, 3,236 advanced certified enterprises had been identified by the GAC under the AEO system, while the number of discredited firms totaled 6,788.

A low credit level can lead to a higher inspection rate, which increases the costs for those enterprises. In 2019, the average inspection rate for advanced certified enterprises stood at 0.57%, with that for discredited firms reaching 84.76%.

Company news

Huawei Technologies, a Shenzhen-listed company, has granted patent licenses for MQ4/MQ5 RF cluster connectors to multiple connector manufacturers.

This will facilitate the large-scale commercial adoption of standard RF cluster connectors as well as to promote the development of miniaturized and highly integrated base station antennas and RF devices, according to a report on Huawei’s website Tuesday. An RF cluster connector incorporates multiple RF ports in one connector, enabling antennas to provide more ports without the need to increase dimensions.

As mobile networks continue to advance, operators have an increasing demand for highly integrated antennas. This has led to substantial growth in the number of ports on antennas and RF devices.

In May, China Southern Power Grid generated power of 104.2 billion kilowatt-hours, up 9.46% year on year.

Last month, power generation grew 9.4% annually in Guangdong, 16.9% in Guangxi, 11.8% in Yunnan, 6.8% in Guizhou and 10.2% in Hainan.

The highest load on the whole network reached 178 million kilowatts, of which 109 million kilowatts were in Guangdong.

The rising demand for electricity was mainly caused by high temperature and an accelerating economic recovery.

The story was written by Xu Jiangshan and Nadeem Xu and first published at ATimesCN.com

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