Setting up supporting tools to help.....>

CHINA PRESS: Setting up supporting tools to help private enterprises with bond

financing does not mean a change in direction for monetary policy, wrote Xu

Zhong, director of the research bureau at the People's Bank of China (PBOC) in

an op-ed piece published in the China Securities Journal.

--The PBOC said late Monday it will use refinancing to provide initial funds for

professional institutions, allowing them to ease access for private companies to

the corporate bond market, mainly via selling credit risk management tools to

private firms, providing guarantees or credit enhancement. The central bank also

said it would boost relending and rediscount quotas by CNY150 bln to boost

financing needs of smaller firms.

--According to Xu, it is policy innovation to ease temporary financing

difficulties for private enterprises that have competitive technology and good

market prospects.

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