MNI China Press Digest June 10: SME Loans, Foreign Trade

The following lists highlights from Chinese press reports on Friday:

• Banks must achieve the goal of lending to more SMEs at a faster pace this year, and further tilt credit resources to areas severely affected by the epidemic, the China Securities Journal reported citing a meeting by China Banking and Insurance Regulatory Commission. Large state-owned banks should ensure an additional CNY1.6 trillion of inclusive loans to small business throughout the year, the meeting said. Banks are still reluctant to lend to SMEs that lack collateral, guarantees and other data, the newspaper said citing Liang Si, a researcher at Bank of China Research Institute.
• China’s foreign trade will continue to be supported by quickly recovered production amid eased Covid-19 curbs, increased pro-growth policies and a weaker yuan, the China Securities Journal reported citing analysts after May export growth unexpectedly rebounded by 13 percentage points to 16.9% y/y. Overseas demand was still expanding in May, and high commodity prices continued to boost payments, the newspaper said citing Zheng Houcheng, director of Yingda Securities Research Institute, adding that there is a lower comparison base on year. Congestion at the Port of Shanghai has eased rapidly since late April, the newspaper added.