According to CCTV, China’s central bank will assist private companies and ease restrictions on technology.
As part of its plan to strengthen the economy, China’s central bank will do more to help private businesses. At the same time, it will ease up on its crackdown on tech companies. State media said that this is what Guo Shuqing, the head of the Communist Party at the People’s Bank of China, said.
In 2023, the focus of monetary policy will be on increasing demand, especially personal consumption, Guo told state-owned CCTV on Sunday, reiterating what the government had already said.
Chinese leaders have promised to help the world’s second-largest economy more after it was hurt by COVID-19 lockdowns and slowing global demand last year. In December, strict measures to stop viruses were rolled back, and now the country is facing a wave of new infections.
Guo, who is also the chairman of the China Banking and Insurance Regulatory Commission, said in a CCTV interview that financial policy should be coordinated with fiscal and social policies to raise incomes for low- and middle-income groups as well as COVID-affected groups.
“Monetary policy that is wise will be clear and firm.” “To do this, we need to focus on increasing effective demand and making structural changes to the supply side,” Guo said.
He said that Chinese financial institutions should treat all types of businesses equally. He also promised that the monetary policy would help private businesses more, keep credit growth going, and lower the cost of financing for businesses.
Guo said that the government wants to make it easier for private companies to get financing by making it easier for them to sell stock and bonds.
China will also help online platform companies grow in a healthy way, Guo said. He added that the financial businesses of 14 platform companies have been “basically fixed,” though there are still a few problems to solve. Guo didn’t say what companies they were.
Since late 2020, Beijing has tightened its grip on the country’s huge fintech companies, making them go back to basics after years of rapid growth.
CCTV said that after that, the government will adopt “normalised regulation” and try to get platform companies to follow the rules.