China Wants to Boost Loans to Small Businesses. Tech Companies May Be the Answer
China’s push to encourage lending to smaller companies has created a business opportunity for large financial technology companies.
As Beijing struggles to balance a crackdown on high debt levels with maintaining growth, President Xi Jinping and Premier Li Keqiang have both publicly announced support for privately-run companies. The central bank has also freed up cash for lending in recent months, and eased rules to help small businesses obtain funds more easily.
Still, the business environment — particularly in financing — still favors state-owned companies, despite the fact that the private sector contributes to the majority of job creation and economic growth in the country.