The State Council Encourages Private Investment In &Nbsp, And Allows Private Capital To Set Up Financial Institutions.

China's government website released 13 opinions on encouraging and guiding the healthy development of private investment.

The opinions encourage and guide private capital to enter basic industries and infrastructure, municipal public utilities and policy oriented housing construction, social undertakings, financial services and other fields.

"Encourage and guide private capital to enter industries and areas where laws and regulations do not explicitly prohibit access."

The opinions clearly put forward that the investment threshold should be set up to create a fair competition and equal access to the market environment.

Market access standards and preferential support policies should be open and pparent. They should be treated equally for all kinds of investment entities, and no additional conditions should be set up for private capital.

"In the general competitive field, we need to create broader market space for private capital."

The opinion put forward that state-owned capital should focus on strengthening and consolidating important industries and key areas related to the lifeline of the national economy.

Government investment is mainly used in the economic and social fields related to national security and the inefficient allocation of resources by the market.

The opinions clearly encourage and guide private capital to enter basic industries and infrastructure, municipal public utilities and policy housing construction, social undertakings, financial services, commerce and circulation, and defense science and technology industries. We should encourage and guide private capital restructuring and joint participation in the reform of state enterprises, actively participate in international competition, and promote private enterprises to enhance their independent innovation and pformation and upgrading.

Allow private capital to set up financial institutions.

Under the premise of strengthening effective supervision, promoting standardized operation and guarding against financial risks, we should relax restrictions on financial institutions' share ratios.

It supports private capital participation in the capital increase and share expansion of commercial banks and participates in the restructuring of rural credit cooperatives and urban credit cooperatives.

We should encourage private capital to initiate or participate in the establishment of financial institutions such as village banks, loan companies, rural mutual cooperatives, and so on, so as to relax the restrictions on the minimum proportion of capital contributions to corporate banks in rural banks or community banks.

We should implement the policy of fully provisioning the loss reserve before and after the SME loan, and simplify the auditing procedures for the cancellation of bad debts of small and medium-sized financial institutions.

We should appropriately relax the restrictions on single investor shareholding ratio of small loan companies, and implement the same financial subsidy policy for small loan companies in agriculture related businesses.

We should support private capital in launching Credit Guarantee Corporation and improve Credit Guarantee Corporation's risk compensation mechanism and risk sharing mechanism.

We should encourage private capital to initiate the establishment of financial intermediaries and take part in restructuring and restructuring of financial institutions such as securities and insurance.

"Clearing and modifying regulations and policies that are not conducive to the development of private investment, earnestly protect the legitimate rights and interests of private investment, and nurture and maintain an equal competitive investment environment."

The "opinion" requires increasing the financing support for private investment and strengthening the financial services for private investment.

We should comprehensively clean up and integrate administrative examination and approval matters involving private investment management, simplify links and shorten the time limit.

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