ZCZC
BCN-09
CHINA-ECONOMY-IP
Weekly policy snapshot of Chinese economy
BEIJING, Aug. 18, 2019 (BSS/Xinhua) – The following are the key moves
taken by policymakers in the past week to enhance China’s economic strength
and sustainability:
— More IP pledge financing to support innovative enterprises
China’s banking and intellectual property regulators have decided to
jointly boost the use of intellectual property (IP) as a financing tool to
support the development of innovative enterprises.
Commercial banks are encouraged to establish separate credit programs and
specific in-house performance appraisal and incentive mechanisms to support
IP pledge financing under the premise of having risks under control.
The China Banking and Insurance Regulatory Commission said it would
tolerate a slightly higher bad loan ratio in IP pledge financing business of
commercial banks.
— LPR reform plan to cut real economy financing cost
The People’s Bank of China unveiled a plan to improve and reform the
country’s loan prime rate (LPR) mechanism in its latest efforts to cut
financing costs for the real economy.
Starting Aug. 20, the National Interbank Funding Center will disclose the
new LPR at 9:30 a.m. on the 20th day of each month.
The number of quotation banks will be expanded from 10 to 18, including
not only national banks, but also urban commercial banks, rural commercial
banks, foreign-invested banks and private banks, to improve the
representativeness of the LPR.
BSS/XINHUA/HR/1456