China's National People's Congress (NPC) has continuously strengthened the supervision of state-owned assets and improved its management systems to promote the high-quality development of both state-owned assets and enterprises.
The State Council reported detailed information on state-owned assets to the NPC Standing Committee for the first time on October 24, 2018.
The report covered the status of state-owned assets at both the central and local levels. It also included information on financial infrastructure institutions under financial management departments, as well as financial subsidiaries held by (non-financial) central enterprise groups.
Since December 2020, the People's Congress has legalized, institutionalized, and normalized supervision of state-owned asset management.
By the end of 2023, the total state-owned assets of companies nationwide had reached 371.87 trillion yuan (about 52.42 trillion U.S. dollars), which was 3.16 times the amount in 2012.
In 2023, operating revenue reached 85.59 trillion yuan (about 12.07 trillion U.S. dollars), with profits amounting to 4.73 trillion yuan (about 670 billion U.S. dollars).
"Through the supervision of state-owned assets management, the government has been able to assess the status of state-owned assets, provide a clear report on state-owned assets to the people, enhance the management system, improve the state-owned assets management practices, and improve the level of state-owned asset management," said Zhang Yongzhi, director of the Budget Commission of the Standing Committee of the National People's Congress.
NPC continues to improve supervision over state-owned assets
Since the beginning of this year, China's financial sector has further improved financing services for small and micro enterprises, particularly by addressing financing blockages for micro, small, and medium enterprises (MSMEs), amidst the country's strengthened support for businesses in recent years.
The China Banking and Insurance Regulatory Commission recently issued a document addressing the blockages in the financing process of MSMEs.
According to the document, the range of entities eligible for liability exemption upon fulfilling due diligence has been broadened to cover loans in key areas such as small and micro enterprises, self-employed individuals, owners of small and micro enterprises, and farmers. This move aims to effectively reduce the burden on grassroots credit personnel and address their concerns regarding lending.
Meanwhile, the scope of renewal has been broadened from certain small and micro enterprises to include all small and micro enterprises.
It is specified that small and micro enterprises with working capital loans and owners of small and micro enterprises, self-employed individuals, and farmers who continue to require financing after the loan terms can seek renewal support from banks.
To enhance support for small and micro enterprises, coordination among different national departments, as well as between national ministries and local governments, is growing increasingly tight.
The China Banking and Insurance Regulatory Commission and the National Development and Reform Commission have established a coordination mechanism to bolster financing for small and micro enterprises.
For instance, special teams have been set up at the county and district levels throughout China to comprehensively assess the financing needs of small and micro enterprises.
For small and micro enterprises with genuine financing needs and good credit standing, banks are required to complete credit approvals within one month in principle, guaranteeing direct access to credit funds for these enterprises.
As of the end of August this year, the balance of inclusive loans to small and micro enterprises nationwide reached 31.9 trillion yuan (around 4.5 trillion U.S. dollars), doubling that at the end of 2017, with the average interest rate decreasing by a cumulative 3.5 percentage points.
By the end of September, the six major commercial banks - Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB), Bank of Communications (BCM), and Postal Savings Bank of China (PSBC) - have collectively extended over 2.2 trillion yuan (around 310.9 billion U.S. dollars) in newly added inclusive loans to small and micro enterprises this year.
China's financial sector further removes MSMEs' financing blockages in 2024
