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China Official on Financial Support for Economic Growth

Study Times published an article by Jiang Dingzhi, the Deputy Secretary of the Communist Party and Deputy President of the China Banking Regulatory Commission. In the article, Jiang listed six areas to focus on when using the financial system to support economic development during the financial crisis. A few of the six areas along with Jiang Dingzhi’s points are as follows:

Promote agricultural industrialization. (We) should have both policy financing and commercial financing. (We) should construct a financial support system for large agricultural enterprises, establishing a credit and insurance system to solve the financing problems for these enterprises; fully utilize the Agricultural Development Bank’s function of administration and financing to raise investment funds to support the agricultural industrialization base and agricultural products development; improve savings institute’s services to offer more business loans, adjusting the amount of capital entering the agriculture industry; and establish cultural industrialization investment funds to effectively organize and direct private investment there.

Promote the concept of everybody doing business. (We) should actively research the “small secured loan + start business training + credit community construction” model, steadily pushing the long-term effect of establishing businesses to create employment opportunities; using circular secured loans, joint liability secured loans, and multi-guarantee secured loan methods to solve the financing challenge for small to mid-sized companies; establish funds for everybody to do business, provide loan guarantees, cover interest points, offer business rebates and awards, conduct training on starting a business, and provide services for businesses.

Source: Study Times, the 495th issue, published on July 20, 2009