China is set to bolster its financial support for the nation’s high-quality economic development, according to Li Yunze, head of the National Financial Regulatory Administration (NFRA). Speaking on Monday, Li emphasized the critical role of financial services in propelling sustainable growth.
Established in May 2023, the NFRA oversees the financial industry, excluding the securities sector. Li’s remarks came during an interview with reporters following the country’s annual national legislative session.
He highlighted significant improvements in efficiency and the broader reach of financial services. In 2023, yuan-denominated loans saw a year-on-year increase of 1.3 trillion yuan ($180 billion). Sectors such as high-tech industries and green initiatives experienced loan growth exceeding 20 percent.
Li noted the continued downward trend in financing costs, with loan interest rates hitting historic lows. Homebuyers are estimated to save approximately 170 billion yuan annually in interest payments, thanks to the reduction in first-home mortgage rates introduced last year.
To further promote high-quality economic development, the NFRA pledged to focus on key areas, including supporting innovation, stimulating consumption, and assisting small businesses.
The administration is committed to providing unwavering support for scientific and technological innovation. It is exploring the use of financial asset investment companies as platforms to expand equity investment pilots, thereby boosting support for science and technology enterprises.
The NFRA also aims to stimulate effective demand. Initiatives under consideration include making car ownership more accessible by exploring reduced down payments for car loans and optimizing the pricing mechanism for new energy auto insurance.
In addition, the administration is launching a special initiative on inclusive finance to increase the volume and availability of loans for small and micro businesses.
Separately, Li reassured the public that financial risks are generally under control and that China possesses ample resources to address any potential issues.
Reference(s):
China pledges strong financial support for high-quality growth
cgtn.com
