By TAN GUOLING | China Daily | Updated: 2025-04-03 China will improve its social credit system to address financing difficulties and high costs for private enterprises through improved sharing of credit information, officials said on Wednesday. “The National Development and Reform Commission is helping to address information asymmetry between financial institutions and enterprises by providing more comprehensive and multidimensional data support to lenders,” Li Chunlin, deputy head of the NDRC, said at a news conference in Beijing. The NDRC will enhance the coverage, accessibility, and efficiency of loan services for micro, small and medium-sized enterprises, strengthen the sharing of government-held business credit information while ensuring data security, Li said. The move comes after China’s central leadership — at a symposium on private enterprises in February — called for addressing the financing difficulties and high costs faced by private enterprises, as the private sector plays a vital role in the nation’s economic development. A national integrated financing credit service platform network has been established, which has achieved institutionalized collection and sharing of 74 key categories of enterprise-related credit information at the national level, including business registration, tax payment, social security and housing provident fund data. This system facilitates authorized access for financial institutions to check and utilize relevant information, according to NDRC. Banking institutions have disbursed loans totaling 37.3 trillion yuan ($5.13 trillion) through the national integrated financing credit service platform as of the end of February, including 9.4 trillion yuan in credit loans, effectively serving the financing needs of micro, small and medium-sized private businesses, Li added. Looking forward, Li said that more efforts will be made to advance the financing credit service platform network, enhancing the quality and efficiency of information sharing, optimizing the platform’s service functions and strengthening data application and product development. The quality of data collection and sharing will be systematically upgraded to guarantee the accuracy of shared information, completeness of data and timeliness of updates, while continuously expanding the scope, he said. “We will enhance the platform’s comprehensive financial service capabilities, providing enterprises with a wider range of financial products while offering credit reports and risk assessments to financial institutions, so as to facilitate online processing for market entities,” Li added. “The National Financial Regulatory Administration will intensify efforts to boost information sharing and guide financial institutions in targeted collaboration, maintaining robust lending to small and micro enterprises while improving loan quality,” said Jiang Ping, an NFRA official. The administration will help to optimize loan portfolio structures and strengthen support for first-time loans, loan renewals and credit loan facilities, aiming to better fulfill the financing needs of credit-worthy small businesses, Jiang said. tanguoling@chinadaily.com.cn

Capital flows from listed banks demonstrate China’s economic dynamism

chinadaily.com.cn | Updated: 2025-04-03 10:00   

BEIJING – The recently released 2024 annual reports of China’s listed banks highlight the diverse dynamics of China’s economic development, as banks, serving as the primary channels for corporate and household financing, in their capital underscore the economy’s growth momentum.

 Key sectors in focus: tech firms attracting major capital

 Data from annual reports indicate that over the past year, listed banks have continued to expand credit issuance to support the real economy. In 2024, China’s four major state-owned banks, which include Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB), collectively issued more than 8 trillion yuan ($1.11 trillion) in new loans.

 ICBC and ABC each saw loan increases exceeding 2 trillion yuan.

 Strategic national initiatives and key industries remained top priorities for credit allocation, the reports showed, and banks reported notable growth in loans directed toward manufacturing, strategic emerging industries, and elderly care services.

 By the end of 2024, ICBC’s outstanding loans to strategic emerging industries had exceeded 3.1 trillion yuan, while BOC’s lending to these industries had grown by 26.31 percent year-on-year.

 CCB’s loans to the manufacturing sector totaled 3.04 trillion yuan, and the medium-to-long-term loans to the manufacturing industry by ABC saw a 20.2-percent year-on-year increase.

 Technology-driven enterprises also gained traction. CCB’s loans to science and technology-related industries topped 3.5 trillion yuan by the end of 2024, while ICBC’s loans to small and medium-sized enterprises (SMEs) that are specialized, refined, distinctive and innovative rose over 54 percent from the start of the year. China Everbright Bank also reported a 42.1-percent year-on-year increase in loans to tech firms.

 Behind the figures, banks have been accelerating the establishment of financial mechanisms that align with technological innovation. ICBC has set up 25 regional technology finance centers nationwide, ABC expanded its network of tech-focused branches to nearly 300, and BOC launched a dedicated science and technology innovation fund.

 However, many SMEs in the tech field still face financing challenges. At their earnings briefings, multiple banks pledged to deepen integrated equity-loan-bond-insurance financial services and tailor products to meet diverse innovation needs.

Boosting consumption, demand: consumer loans surging

 Consumer credit has emerged as a catalyst for domestic spending. Banks actively promoted traditional sectors like automobiles and home appliances while cultivating new consumption scenarios in tourism, elderly care, and other services.

 By end-2024, Bank of Communications saw personal consumer loans jump 90.44 percent year-on-year, adding 156.8 billion yuan. ABC’s consumer loans grew 28.3 percent, that of CCB rose 25.21 percent, and China Merchants Bank’s consumer loan balance hit 396.16 billion yuan, up 31.38 percent year-on-year.

 CCB also reported over 1 trillion yuan in credit card loans.

 At the same time, banks have focused on meeting residents’ essential and improved housing needs by maintaining stable personal mortgage lending. By the end of 2024, CCB’s personal mortgage clients had surpassed 15 million, with outstanding mortgage loans totaling 6.19 trillion yuan. China CITIC Bank’s mortgage loan balance increased by 61.41 billion yuan, ranking among the highest in the industry.

 Since the fourth quarter of last year, China’s housing market has shown positive changes following the implementation of a series of policy measures, which was also reflected in the financial sector.

 According to CCB vice-president Ji Zhihong, the bank’s daily average mortgage loan applications in Q4 2024 rose by 73 percent quarter-on-quarter and 35 percent year-on-year, with early repayments declining further in Q1 2025.

 With additional policies aimed at boosting consumption on the horizon, the consumer finance market is poised for new growth opportunities. Dong Qingma, deputy dean of the Institute of Chinese Financial Studies at Southwestern University of Finance and Economics, stated that financial institutions will continue to ramp up support for consumption through fiscal incentives, interest subsidies, and tax reductions, injecting more capital into the economy.

 While CMB’s annual report highlighted plans to tap into consumption scenarios encouraged by national policies, including high-end and comprehensive household spending. ICBC announced that it will actively engage with emerging economic models such as the ice and snow economy and the silver economy to further unleash consumption potential and enhance economic circulation.

Unlocking credit growth: fueling real economy

 Multiple banks have signaled their commitment to maintaining stable credit growth, ensuring strong, sustained financial support for the real economy.

 ICBC pledged over 6 trillion yuan in financing to private enterprises over the next three years. ABC aims to exceed 7.5 trillion yuan in loans to private firms by 2025, with inclusive finance loans growing faster than average.

 A review of various banks’ strategic directions suggests that credit allocation priorities for 2025 are becoming clearer. Bank of Communications plans to issue 480 billion yuan in corporate loans, targeting major infrastructure projects, manufacturing, rural revitalization, and strategic emerging industries aligned with government policies.

 CCB plans to further expand its retail credit and focus on green finance in key sectors such as energy, industry, and transportation, while continuing to support major infrastructure projects. China Everbright Bank will allocate over 70 percent of its corporate credit growth to tech, green, and inclusive sectors.

 “The implementation of a more proactive fiscal policy and a moderately loose monetary policy this year will provide a favorable macroeconomic environment for the banking industry,” said ABC president Wang Zhiheng, adding that in 2025, the bank will seize strategic opportunities in rural development, industrial upgrades, and green transitions, among others.

 Experts believe that as banks align their strategies with macroeconomic priorities, they will continue to identify and meet effective credit demand, enhancing the precision and adaptability of financial services, thus, continuing to channel high-quality funding to sustain the real economy’s growth.