Market bolstered by more than US$43.22 bn in bailout funds
The health of China's private enterprise is of great significance, as it contributes 50% of tax revenue, 60% of GDP, 70% of technological innovations and 80% of urban employment
Reducing the “shares pledge” risk for listed companies and easing financing difficulties for private enterprise have become top priority in the current economic climate, Economic Information Daily reported.
According to a calculation by the Daily, more than 300 billion yuan (US$43.22 billion) in bailout funds from financial institutions and local governments are boosting the market.
The healthy development of private enterprise is of great significance to the Chinese economy, as it contributes more than 50% of tax revenue, 60% of GDP, 70% of technological innovations, 80% of urban employment and 90% of businesses.
Insiders think most of the current announced or implemented policies are being utilized for the temporary relief of private enterprise financing.
Thus, it is imperative to establish a long-term financing mechanism for private enterprise, the report said.