by Amira Berrada - Regulation, South Asia, East Asia and Pacific -

MICROCAPITAL BRIEF: Chinese Government Establishes 12 Goals to Improve Local Capital Markets, Access to Finance for Private Small and Medium-Sized Enterprises

The Chinese government’s State Council recently identified 12 measures to improve local capital markets, Chinese financial institutions and access to finance for Chinese private enterprises that are small and medium-sized.

In terms of developing local capital markets, the Chinese government identified the following goals: building up a comprehensive local financial regulatory system, opening the local bond market to small enterprises, allowing private Chinese direct investments to be made overseas, developing a risk management system for financial reforms and duly defining and dividing the local government’s responsibilities for maintaining financial stability and encouraging exchanges of property rights, such as technologies, among privately held companies [1].

In terms of financial institutions, the State Council identified accelerating the development of new types of financial organizations, including joint-stock village and township banks, loan companies and rural financial co-operatives; developing qualified microcredit companies into village and township banks; encouraging non-banking financial institutions to expand their businesses; and broadening the insurance sector [1].

In terms of helping privately owned small and medium-sized enterprises, the State Council suggests strengthening the credit system to include small enterprises and rural entities, strengthening credit market regulation, developing financial services designed for small enterprises and agricultural companies, orderly development of fundraising for private enterprises and development of special assets management strategies to guide private capital into venture capital and private capital funds [1].

Information pertaining to when and how these goals will be met has not been disclosed.

By Amira Berrada, Research Associate

Sources and Additional Resources:

[1] http://www.chinadaily.com.cn/cndy/2012-03/30/content_14947254.htm

MicroCapital.org story, March 6, 2012, “MICROCAPITAL BRIEF: China Association of Microfinance (CAM), China International Center for Economic and Technical Exchanges, Peking University, CreditEase Microcredit Investment Launch Inclusive Finance Wholesale Fund” https://www.microcapital.org/microcapital-brief-china-association-of-micr…

MicroCapital.org story, May 16, 2011, “MICROCAPITAL BRIEF: Observers: China Government Should Help Foreign Investors Navigate Microfinance Sector” https://www.microcapital.org/microcapital-brief-observers-chinese-governm…

MicroCapital.org story, October 14, 2010, “MICROFINANCE BRIEF: Grameen Foundation, China Social Entrepreneurship (YouChange) Foundation and Several Chinese Businesses Partner to Found Microfinance Institution, the Beijing YouChange PuRong Information Advisory Company Limited” https://www.microcapital.org/microcapital-brief-grameen-foundation-china-…

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.