Financial Support Greatly Helps Firms Resume Normal Operation
Click:337    DateTime:Apr.07,2020

To help virus-hit enterprises resume normal operation, China has taken a raft of financial measures like providing re-lending funds of RMB300 billion with actual financing cost of just around 1.26%, increasing re-lending and re-discount quota by RMB500 billion, issuing loans of more than RMB130 billion with preferential interest rates, etc. These measures play increasingly bigger role, and China's financial system is generally stable.
Ninety-five percent of domestic banking outlets (excluding those in Hubei) have resumed operation (insurance outlets, exceeding 97%). Credit aid from banking institutions has totaled more than RMB1.8 trillion. In the first two months of 2020, manufacturing loans have increased by RMB250 billion, far exceeding growth in the same period last year. Since January 25, around 20% of micro, small and medium-sized enterprises have enjoyed deferred repayment policy.
China’s A share market has showed a relatively strong risk resistance capacity after the Spring Festival, with smaller range of fluctuations compared with international market. More than 98% of listed companies have resumed operation. External environment will not change the positive trend of China’s capital market. Further, supply and demand in foreign exchange market are basically balanced. Since the beginning of 2020, the exchange rate of RMB has been stable on the whole, and in the medium to long term, there is no basis for the RMB to depreciate significantly.