China's National Financial Regulatory Administration (NFRA) has formulated a series of targeted regulatory policies to support the growth of private enterprises, particularly small and micro enterprises(SMEs) which constitute the vast majority of private businesses in the country, said Cong Lin, deputy director of the administration on Thursday.
The move is in line with the newly-adopted law on the promotion of the private sector, which stipulates the promotion of investment and financing for the sector.
At a press conference in Beijing, Cong cited measures that encourage banks to lend more to SMEs, making it easier for them to access funding.
"In terms of capital regulation, we reduce the risk capital weight for SME loans by 15 percent to 25 percent. We've also relaxed the regulatory tolerance of non-performing rate of inclusive loans for SMEs, allowing them to be up to 3 percentage points higher than the overall non-performing loan rate. All these are aimed at encouraging banks to lend more," Cong said.
The NFRA has also urged banks to set their annual targets of serving private enterprises to ensure lending growth.
"By the end of the first quarter of 2025, the balance of loans to private enterprises reached 76.07 trillion yuan, up 7.41 percent year on year. The balance of inclusive SME loans reached 35.3 trillion yuan, a year-on-year increase of 12.5 percent. We've also implemented the loan renewal policy without principal repayment, which helps reduce turnover costs for businesses. As of the end of the first quarter, the balance of renewed loans reached 7.4 trillion yuan, growing by 35.7 percent year on year," she said.
China's financial regulator adopts tailored policies to support small firms
Officials from the European Union (EU) and Finland have voiced concerns after the White House said it has been discussing "a range of options" to acquire Greenland, including the use of the military.
EU foreign policy chief Kaja Kallas told a press briefing in Cairo on Thursday that the message from the U.S. is "extremely concerning," and "not really helping the stability of the world."
Kallas called on all parties to stick to international law, adding that relevant response measures has been discussed among EU members.
"The international law is very clear, and we have to stick to it. It is clear that it is the only thing that protects smaller countries, and that is why it is in the interest of all of us. And we discussed this today, as well, that we uphold the international law on all levels," she said.
Finnish Foreign Minister Elina Valtonen on Thursday described recent remarks by U.S. President Donald Trump and members of his administration on Greenland as "worrying," while reiterating Finland's support for Denmark and Greenland's right to self-determination.
"Finland and the other Nordic countries have exceptional expertise in Arctic conditions, and we are happy to make use of that together with our North Atlantic Treaty Organization (NATO) allies to strengthen Arctic security, but it cannot be done by threatening allies," she said at a press conference at Finnish parliament after an extraordinary meeting of the parliamentary Foreign Affairs Committee.
Johannes Koskinen, chair of the Foreign Affairs Committee, said it was "unprecedented" for threats of violence to be made within NATO against another member in connection with seizing territory, adding that such threats run counter to the United Nations Charter and that their inconsistency with international law should be underscored at all levels.
EU, Finnish officials express concerns over US remarks on Greenland
