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China to increase financial support for industrial upgrade | Canindia News

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China to increase financial support for industrial upgrade

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CanIndia New Wire Service 0 comments

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Beijing, Feb 16 (IANS) China will increase financial support to its industries as they are being encouraged to transform themselves amid the country’s industrial upgrades, an official document said on Tuesday.

China will expand credit to industrial enterprises, make capital and insurance markets more helpful and innovate in corporate financing system, Xinhua cited a guideline jointly released by eight economic regulators including the central bank.

The authorities will implement a differentiated strategy targeting different sectors and areas, the document said.

The development of emerging sectors and upgrades of traditional ones will receive more support, and financial institutions will be encouraged to make long-term loans to high-tech firms, technical equipment manufacturing and some basic industries.

However, loans to “zombie companies” that have suffered continual losses and are unable to pay back their debts will be slashed or withdrawn, according to the guideline.

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