Major banks vow more support for the real economy
China’s major state-owned banks have pledged to enhance support for the real economy. The move comes in response to Xi Jinping’s call for high-quality economic growth, made at the opening of the 20th CPC National Congress. CGTN’s Xu Hua reports from Shenzhen, where some companies are already welcoming the announcement.
Banks
China’s six largest banks have vowed to enhance support for the real economy.
This comes after Xi Jinping’s pledge that “China must continue to focus on the real economy in pursuing economic growth.”
Shenzhen
For the Shenzhen Special Economic Zone, tailored policies have been implemented to boost a variety of industries and sectors.
JI XINGHE General Manager, Financial Department Bank of China Shenzhen Branch “We have firmly supported the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Socialist Pilot Demonstration Zone. According to our branch’s plan to release 300 billion yuan’s worth of credit funds to serve the real economy, we will continue to increase the credit supply for the manufacturing industry, emerging industries of strategic importance, green credit, and science and technology financing. We aim to actively integrate into the new development pattern.”
China’s GDP rose from 54 trillion yuan to 114 trillion yuan over the past decade. However, in the coming decades, high-quality will be prioritized over high-speed.
Golden Age
For China’s advanced manufacturing industry, its golden age is potentially just around the corner.
LIU TANGZHI Executive Director, Board Vice Chairman Skyworth “We are very excited and looking forward to this, because the real economy is a pillar of the national economy. It really is a golden age for us. Skyworth has set a sales target of 100 billion yuan in the next three to five years, and we plan to increase our share in the global market. With the policy guidance and support from the six major financial institutions, we feel more confident than before.”
XU HUA Shenzhen “China’s real economy has received consistent emphasis from economic policymakers for years. And its significance has been stressed again at the 20th CPC National Congress. The next five years will be crucial for China, as it aims to get off to a good start in building a modern socialist country in all respects.”
WU HAIFENG Executive Director, Shenzhen Institute of Data Economy “The core underlying structure supporting the development of our real economy is very well developed and has a wide range of sectors. With current capital, talents, as well as coordination between governmental and other departments, our real economy can be upgraded to a new level.”
However, experts have also warned of challenges down the road.
WU HAIFENG Executive Director, Shenzhen Institute of Data Economy “How digitalization empowers our manufacturing industry, how IoT solutions are better integrated in the supply chain of the real economy, how to provide better financial services for the real economy, how to foster and unleash more value, and how to optimize energy sectors to reduce emissions, these are all challenges that the real economy will face in the future.”
Despite the obstacles, Wu maintains that China’s ambitions to achieve higher-quality growth will ultimately help upgrade industries, and bring positive impacts to people’s lives. Xu Hua, CGTN, Shenzhen.
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