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Tuesday, September 20, 2016
Financing support to real economy must be combined with structural adjustment
ANBOUND

To battle the problems of the tight liquidity of business entities and high financing cost, Henn Province has launched the twenty measures of the banking sector in support of real economic development; this makes Henan the third province to introduce actual measures after Shanxi and Shandong. It is expected that there will be more provincial governments coming out with more detailed policies to restrict banks stop lending to corporate entities and give real economic development more financial policy support. This policy should combine with lowering leverage and adjusting structures, and it must be treated as a systematic policy adjustment.

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