The People’s Bank of China (PBoC), the central bank of China, will strengthen its financial support for small and microenterprises through new monetary policy instruments. It comes amid China’s efforts to stimulate the real economy, according to two circulars issued jointly by the PBoC and four other regulators on Tuesday.

Starting Monday, the PBOC will offer a special re-lending quota of up to 400 billion yuan ($ 56.2 billion) to buy 40% of inclusive loans to small and micro businesses issued by local banks. from March 1 to December 31.

This will help banks directly reduce the cost of their debt and replenish their liquidity, said Li Qilin, chief economist at Yuekai Securities. Small businesses will benefit from greater credit support, Li added.

As part of the tools to help extend loans, banks are encouraged to enrich loan products and lower the interest rate on loans, according to one of the circulars.

The PBOC has said that small businesses are allowed to request a deferral of their inclusive loan repayment maturing by the end of 2020 to March 31, 2021, with penalties waived.

As the country strives to develop new monetary policy instruments capable of directly stimulating the real economy, it is crucial to take measures to ensure that businesses can obtain loans more easily and promote the steady reduction in interest rates. ‘interest, according to this year’s government activity report.

Authorized economic operator

China’s highest customs authority has released new data on its Authorized Economic Operator (AEO) credit system, which the authority uses to improve the country’s foreign trade and strengthen credit supervision on businesses.

The AEO system, initiated by the World Customs Organization, aims to facilitate customs clearance through customs authentication of trading companies with a high level of legal compliance, credit and security.

New data from the General Customs Administration (GAC) shows that at the end of May, 3,236 advanced certified companies had been identified by the AGC under the AEO system, while the number of companies discredited amounted to 6,788.

A low level of credit can result in a higher inspection rate, which increases costs for these businesses. In 2019, the average inspection rate of advanced certified companies was 0.57%, with discredited companies reaching 84.76%.

Company News

Huawei Technologies, a listed company in Shenzhen, has granted patent licenses for MQ4 / MQ5 RF cluster connectors to several connector manufacturers.

This will facilitate the large-scale commercial adoption of standard RF cluster connectors and promote the development of miniaturized and highly integrated base station antennas and RF devices, according to a report released on Huawei’s website Tuesday. An RF cluster connector integrates multiple RF ports into a single connector, allowing antennas to provide more ports without the need to increase dimensions.

As mobile networks continue to advance, operators have a growing demand for highly integrated antennas. This has led to a substantial growth in the number of ports on antennas and RF devices.

In May, China Southern Power Grid generated power of 104.2 billion kilowatt-hours, up 9.46% year-on-year.

Last month, power generation grew 9.4% per year in Guangdong, 16.9% in Guangxi, 11.8% in Yunnan, 6.8% in Guizhou and 10.2% in Hainan.

The highest load on the whole network reached 178 million kilowatts, of which 109 million kilowatts in Guangdong.

The increase in demand for electricity was mainly caused by high temperatures and the acceleration of the economic recovery.

The story was written by Xu Jiangshan and Nadeem Xu and first published at ATimesCN.com.