The China Banking Association and the All-China Federation of Industry and Commerce jointly issued a proposal on Monday,calling on banking institutions to improve credit access for private enterprises,offer better financial services for private technology companies and lower financing costs for the private sector.

The association said the proposal aims to drive banking and financial institutions to make more concrete endeavors to facilitate the high-quality development of the private economy.

Banking institutions are expected to support micro and small private enterprises for debut loans,rollover loans and credit loans,it said.

According to the proposal,enhancing financing services tools,such as intellectual property pledges and receivables pledges,is crucial to actively supporting technology-driven private enterprises in research and development,commercialization of innovations,and transformation and upgrades.

Additionally,banking institutions are expected to reduce the overall financing costs for private enterprises by increasing credit supply and streamlining processes to minimize intermediary expenses,it said.

The move comes amid stronger efforts by the nation to support the high-quality development of its private sector.

Lin Zeyan,deputy secretary-general of the All-China Federation of Industry and Commerce,said that based on a financing assistance program tailored for small and medium-sized enterprises,which the federation has been engaged in over the past five years,the proposal aims to provide stronger support to and cover all private economic entities,and encourage broader participation from banks.

Xing Wei,vice-president of the China Banking Association,said the proposal will serve as a guideline for banking institutions to improve financial services for private enterprises,fostering the high-quality development of the private economy in the new era.

"In recent years,the financing environment for private enterprises has significantly improved,with loan interest rates steadily declining and financing accessibility markedly enhanced,"said Wen Bin,chief economist at China Minsheng Bank.

As of June 30 last year,outstanding loans to private enterprises nationwide reached 71.8 trillion yuan($9.93 trillion),a year-on-year growth of 9 percent—0.8 percentage point higher than the overall loan growth rate,according to the National Financial Regulatory Administration.

Meanwhile,the average interest rate on newly issued loans to private enterprises stood at 3.9 percent,down 0.58 percentage point from a year earlier and cumulatively decreasing by 3 percentage points since 2018.

At a time when the external environment is becoming increasingly complex and uncertain,and the foundation for economic recovery is not yet solid along with insufficient effective demand,China needs to make more efforts to support its private sector,Wen said.

"Addressing the financing difficulties and high costs faced by private enterprises,especially small and micro ones,remains a long-term and systemic endeavor,"he said.

Looking ahead,efforts should be made to deepen financial services for private enterprises,provide diversified and innovative solutions,and support growth in emerging sectors to further drive the development of the private economy,Wen said.