Chinese policies supporting the private sector would not change, Chinese Vice Premier Liu He (劉鶴) said yesterday, state media reported, amid growing concern that a crackdown on a wide range of industries was hurting businesses.
Liu said that “guidelines and policies for supporting the private economy have not changed ... and will not change in the future,” a report from Xinhua news agency said.
He was speaking by video at a forum on the digital economy in Hebei Province.
Photo: AFP
China has launched a crackdown on a range of industries, leaving start-ups and decades-old firms operating in an uncertain environment and rattling investors in the world’s second-largest economy.
The private economy contributes to more than 50 percent of tax revenue, more than 60 percent of China’s GDP and 80 percent of urban employment, Liu said.
Chinese President Xi Jinping (習近平) has called for China to achieve “common prosperity,” seeking to narrow a yawning wealth gap that threatens the country’s economic ascent and the legitimacy of the Chinese Communist Party’s rule.
Officials have pledged to tighten supervision in the financial services industry, suggesting a recent regulatory onslaught on the private sector that sent shock waves globally is not over yet.
The central bank will close loopholes in its financial technology regulation, and include all types of financial institutions, services and products into its prudential supervision framework, People’s Bank of China Deputy Governor Chen Yulu (陳雨露) said at the China International Finance Annual Forum in Beijing on Saturday.
Authorities would also boost foreign exchange market supervision at macro and micro levels, he said without elaborating.
“We will enhance the effectiveness and professionalism of financial regulation, build all kinds of firewalls to resolutely prevent systemic risks,” Chen said.
The China Securities Regulatory Commission would improve its regulations for companies seeking overseas listings, and enhance channels for foreign investors to participate in China’s onshore securities futures market, commission Vice Chairman Fang Xinghai (方星海) said at the forum.
Investors have endured significant losses this year with the nation’s benchmark CSI 300 Index down about 16 percent from its February high, making it among the worst-performing major gauges in Asia this year.
The securities regulator has communicated with foreign investors on the plunge in overseas-listed Chinese stocks, triggered by a spate of surprise crackdowns on industries from private tutoring to Internet platforms, Fang said.
The investors believed they have under-allocated Chinese assets, he said.
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