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MA Jun: the extent of tax and fee cuts may reach or even surpass 1% of GDP

Time: 2018-10-22 09:45 Print

While the recent stock market has experienced a constant drop, and the pledge of shares is facing the pressure of unwinding, Financial Stability and Development Committee of the State Council held a special meeting on “preventing and defusing financial risks”. In regard to the policy trend, the reporter interviewed Ma Jun,

To solve the financing difficulty for private enterprises, Ma believes there will also be some practical moves. He predicted that the supervision bodies will make clear of Banks’ due diligence exemption. Biased clause from banks, such as “on term of violation, lifelong responsibility is required” when handling private enterprise loans, will not be allowed. Furthermore, Government will provide special “guarantee fund” to increase banks’ willingness to loan to private enterprises.

In the short-term, Ma believes the supply in the capital market will be refined by Government measures, insurances and banks’ financing tools. “Some local governments have started to provide liquidity support to listed companies, which will also help to ease cash flow pressure of these enterprises.”