Friday
February 1
2019

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.

Source: CNBC (link opens in a new window)

Categories
Entrepreneurship, Finance, Technology
Tags
financial inclusion, lending, SME finance, SMEs, technology