China’s top economic planner NDRC to build private economy development bureau to support private sector

 

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The National Development and Reform Commission (NDRC), China’s top economic planner, will set up a private economy development bureau dedicated to overseeing the rollout of major supportive measures in order to bolster private sector growth.

The bureau will track and analyze the development of the private economy, organize the formulation of relevant stimulus policies aimed at shoring up the sector’s development and other measures promoting private sector investment, the NDRC said at a press briefing on Monday. 

The bureau will also establish a communication mechanism with the business community and assist to solve major problems impacting the development of the private economy, while supporting the sector to increase its competitiveness globally, it said.

The establishment of the bureau will consolidate the current progress while creating better development environment for the private economy. 

The NDRC will also actively promote the construction of a key private investment project platform with the backing of a series of measures augmenting the budget and investment work, while optimizing the financing of private-funded projects, the NDRC said at the press briefing, adding that the NDRC has proposed the first batch of 715 private investment projects to banks. 

Hu said that the establishment of a new market-oriented platform will assist SMEs to have easier access to more financing channels.

China has been stepping up efforts to ramp up the development of the private economy in a bid to further bolster market confidence and improve market environment. 

The People’s Bank of China, the central bank, announced on August 30 that a draft guideline aimed at increasing financial support for private enterprises is being finalized, including measures such as lifting the proportion of loans to private enterprises and smoother financing channels including IPOs and issuing bonds. 

Earlier in August, eight Chinese ministries including the NDRC issued 28 measures to support the private sector, two weeks after the Communist Party of China Central Committee and the State Council issued a sweeping guideline on boosting the growth of the private economy on July 19.