Image: Phuong Uyen Vo Hoang via Unsplash
Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.
This week’s highlights:
- China’s central and local governments and state-owned enterprises have become more involved in the domestic private equity (PE) market. In recent years, state-owned capital has become the largest investor in China’s PE market through government-guided funds and government-backed investment platforms. According to a Moody’s report released Sept. 15, the Chinese government’s involvement is likely to increase credit risk since there is debt financing in some provinces and regions, as well as raise the likelihood of fund misuse and mismanagement. (Caixin)
- The Premier of China’s State Council announced the launch of a special refinancing policy to support enterprises in their effort to update and renovate equipment. Speaking at a State Council executive meeting, Li Keqiang said Chinese companies will be offered a significant discount on loan interest under the policy, which will take effect in the fourth quarter of 2022. A similar refinancing policy was already launched earlier this year for China’s science and technology innovation sphere, as well as for pensions, transportation and logistics. (Caixin)
- The People’s Bank of China plans to strengthen oversight of large payment platform enterprises and promote the standardized and healthy development of payment and financial technology, according to Bank vice governor Zhang Qingsong. Speaking at the China Payment and Clearing Forum, Qingsong underscored the need to accelerate the legislative process concerning regulations on non-bank payment institutions, as well as strengthening supervision laws in this sphere. (Caixin)
