Hohhot to promote direct financing

The Hohhot government has announced its support of direct financing as a way of driving the development of its financial sector.

Through direct financing, enterprises can obtain funds from the capital market by issuing shares or bonds, rather than from intermediary institutions like banks or insurers.

At present, Hohhot, the capital of Inner Mongolia autonomous region, has nine listed enterprises, 23 enterprises listed on New Third Board and 136 on the Inner Mongolia Equity Exchange.

According to its plan, the Hohhot government will improve its financial services to better aid enterprises and support those qualified to issue corporate bonds, short-term financing bills and mid-term notes.

The government will introduce more joint-equity banks and non-financial institutions, such as financial leasing enterprises, to establish branches in the city.

The financial sector has been one of Hohhot's pillar industries, employing 35,000 people in 2017.

According to statistics, the assets of Hohhot's banking industry reached 960 billion yuan ($152.13 billion) last year.