China to strengthen financial support for enterprises

China will focus on improving financial services to micro, small and medium-sized enterprises 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.

The regulation introduced new guarantees for SMEs to ensure they are paid in full by government agencies, public institutions and large enterprises, including limits on payment times, information disclosure on overdue payments, and punishment for defaults.

The meeting also unveiled new measures to boost the development of national high-tech industrial development zones. Pilot policies implemented in pilot free trade zones will be adopted and promoted in the high-tech zones.

Restrictions on visa and residence permits will be eased for overseas talent, and greater opening-up and cooperation are pledged to help the high-tech zones better integrate into international industrial and supply chains.