Banks urged not to discriminate private companies
May 23, 2016 Category Finance, Weekly
The China Banking Regulatory Commission (CBRC) has asked the country’s banks to check and report back on their attempts to support private investors, identify any discrimination against small borrowers, and determine whether they gave private companies fair access to loans. There is concern that growth in private investment is slowing. The central government said it would send inspection teams to targeted areas to check on the implementation of policies designed to encourage private investment. In the first four months, growth in private investment eased to 5.2%, down 0.5 percentage points on the first quarter. Fixed-asset investment (FAI) rose 10.5% over the same period while private investment accounted for 62.1% of total investment, down 3.2 percentage points from a year earlier. Commerzbank Economist Zhou Hao said the notice would not have a big effect on private investment. “The real issue is lack of investment enthusiasm rather than a lack of credit,” he said. However, new yuan loans fell almost 60% to a six-month low of CNY555.6 billion in April, the South China Morning Post reports.
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