Caixin Editorial: How to Stimulate Financial Demand in the Private Sector

Revitalizing private investment requires China go beyond policy directives and create fundamental strategies to bolster the confidence of businesses

Photo: VCG

Chinese authorities have recently released a document that outlines 25 measures aimed at bolstering the private sector that includes increased allocation of credit resources, facilitating financing channels for private enterprises’ bonds, expanding the scope of high-quality private equity financing, and enhancing foreign exchange facilitation policies and service provisions.

The Notice on Strengthening Financial Support Measures to Boost the Development and Growth of the Private Economy, issued by the People’s Bank of China, along with seven other government departments, clearly demonstrates the government’s concern regarding the current challenges faced by private companies. Its implementation is eagerly anticipated in the private sector. However, it is essential to acknowledge that in recent years, private companies have encountered operational difficulties, and