National Standing Committee made two mentions of targeted RRR cuts during the month and issued more than one trillion red envelopes to support small, medium and micro

National Standing Committee made two mentions of targeted RRR cuts during the month and issued more than one trillion “red envelopes” to support small, medium and micro
The National Council of the People’s Republic of China moved out of the targeted RRR cut for the second time this month.According to CCTV reports, Premier Li Keqiang presided over an executive meeting of the State Council on March 31, in order to strengthen financial support for small and medium-sized enterprises, and determined to further implement targeted reductions to small and medium-sized banks, and then released more than one trillion “red packets” to support small and medium-sized microenterprise.The “red envelope” includes relatively new alternatives: guiding the net financing of corporate credit bonds by 1 trillion yuan more than the previous year, and promoting small and medium-sized enterprises to gradually raise 800 billion yuan in accounts receivable.Wen Bin, chief analyst of China Minsheng Bank, analyzed that credit bond financing can increase direct financing channels for enterprises. At present, market interest rates are gradually declining, and credit debt issuance interest rates will also be declining, thereby increasing the scale of direct financing of enterprises and reducing financing costs.”Account receivable financing refers to the use of account receivables for pledge financing without secured collateral. In this way, it can strengthen the credit support for small and medium-sized enterprises. It is a new structured financing.arrangement.”Financing of accounts receivable under the supply chain system can also strengthen support for upstream, downstream, small, medium and micro enterprises.”Wen Bin said.Supporting small, medium and micro enterprises, there is also a reduction in the standard of combination.”Further implement a targeted reduction of the standards for small and medium-sized banks, and guide small and medium-sized banks to obtain all funds to lend to small and medium-sized enterprises at a preferential interest rate.”The National Convention on March 31 said.