China’s banks must innovate to help small businesses weather ‘complex and severe’ economic environment

People’s Bank of China governor Yi Gang has called on banks to help small businesses weather the severe economic environment through fintech innovation
Premier Li Keqiang said in a visit to Chongqing that China’s economy can grow this year if the nation achieves its target of adding 9 million jobs

China economy

Bloomberg

Published: 12:11pm, 24 Aug 2020

Why you can trust SCMP

People’s Bank of China governor Yi Gang has urged banks to support smaller companies through innovations in financial services and products to help nurse them through the “complex and severe” economic situation facing the country.

Yi told a seminar in the eastern city of Hefei on Friday that banks should adapt financial services and products, increase investment in fintech research and technology and integrate on-site and online financial services, according to a statement posted on the central bank’s website Sunday.

China is particularly keen to get its smaller companies and business operators, which employ most the workforce, back on track after the economic impact of the coronavirus outbreak early this year.

06:35

US demands for TikTok may escalate decoupling and hurt businesses, says China expert

Premier Li Keqiang said in a visit to the western city of Chongqing that China’s economy can grow this year if the nation achieves its target of adding 9 million jobs.

Li called on the nation to step up its efforts and prepare for uncertainties after the economy achieved positive results in recent months, according to a statement posted on the central government website on Sunday.

China’s economy has returned to growth, with gross domestic product expanding in the three months to June, up 3.2 per cent from a year ago. That came after a 6.8 per cent decline in the first quarter.

The nation will provide help to the tourism industry and others in the services sector to help resume operations and consolidate the economic rebound, Li said when visiting retailers in Chongqing.

02:46

Chinese rats, cobra farmers face debt and poverty after wildlife ban

Meanwhile, Li also said western regions should accept more industries transferred from eastern areas, according to a separate government statement on Saturday.

Li visited a unit of Shenzhen-listed BOE Technology Group in Chongqing on Friday and said he hoped the company would keep upgrading its LCD products for mobile phones, computers and televisions, according to the statement.

The premier also visited Shenzhen-listed Chongqing Changan Automobile while in the city and said the company had contributed to China’s economic rebound. The company’s sales in January-July rose 6 per cent from year ago.

Post