China signals stepping up economic support in 2020

Chinese Premier Li Keqiang signalled plans to free up more cash for the country’s banking system in a bid to boost lending to small businesses as leaders look to kickstart the world’s number two economy.

Li flagged a fresh cut to the amount of cash lenders must keep in reserve, according to state news agency Xinhua, in the latest move to ramp up stuttering growth.

The comments from Li came as he visited a bank in Chengdu a day before Tuesday’s trilateral summit with the leaders of South Korea and Japan in the southwestern city.

Li said he was “very concerned about the financing of small and micro businesses” and the government will “increase support for small and medium-sized banks” that directly serve these businesses, Xinhua reported.

The government “will further study measures” such as reducing the reserve requirement ratio and ways to reduce financing costs and interest rates “to significantly ease the financing difficulty and high cost”.