China has published guidelines on Tuesday to increase financial support for advanced production, stating that it will encourage banks to provide medium and long -term funding for sectors such as integrated circuits and advanced materials.
The guidelines, jointly released by seven state agencies, including the Central Bank and the Ministry of Finance, aim to promote industrial modernization and, at the same time, limit excessive competition, which has been a growing concern for Chinese monetary policies formulators, since the excess deviation capacity capacity.
Beijing is also trying to stimulate internal demand and technological innovation, since US commercial threats threaten to suffocate growth.
The most recent financial plan “aims to deepen the structural reform by the financial sector, strengthen the synergy between industrial and financial policies and provide high quality financial services for the progress of the new type industrialization and the development of new quality productive forces”, said the agencies.
According to the guidelines, China will adopt policies that combine support and control, promote the rise of the sectors in the value chain and avoid strong hot competition in the style of “involution”.
China will use structural monetary policy tools to encourage banks to provide medium and long -term financing for the main sectors, including chips, medical equipment, servers, software and advanced materials, according to guidelines.
Technological companies that make progress in essential technologies will benefit from “green channels” for lists, mergers and acquisitions and the issue of the title, according to the guidelines.
Until 2027, China aims to establish a financial system that supports the state, intelligent and ecological development of the manufacturing sector, with adaptability of significantly improved services, have affirmed state agencies.
The guidelines also require that financial institutions provide plans of financial solutions for companies seriously affected by external factors and promise support for mining companies to stabilize the prices of supplies and raw materials.
In recent years, China has directed a greater bank credit to the manufacturing sector, deviating resources from the real estate market, which is overwhelmed by the debt.
Source: Terra
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