In a bid to promote the sustainable development of the financing guarantee sector, the China Banking Regulatory Commission (CBRC) and other relevant departments are looking into opinions and measures promoting the development of this sector and may introduce policies on fiscal and tax support soon.

Zhu Yongyang, deputy director-general of CBRC’s financing guarantee business department, said at a press briefing that CBRC is currently consulting relevant departments on policies promoting the sustainable development of the financing guarantee sector and is taking steps to introduce support policies.

On the detailed policies to be introduced, Zhu Yongyang revealed that, "(They may cover) say, what should be done to coordinate with existing support policies; integration of support fund distribution, supervision and appraisal; and enhancing the effectiveness of support."

"Efforts will be made to study and formulate new fiscal support policies and tax concession policies. Action will be taken to establish a business-oriented policy support system whereby incentives and subsidies will be granted to financing guarantee institutions according to their business volume and social responsibility performance, i.e. the volume of financing guarantee business provided to small and medium-sized enterprises," added Zhu.

CBRC also pointed out that the financing guarantee business regulatory departments joint conference will make greater efforts to formulate administrative measures for the use of own funds by financing guarantee institutions, measures for the administration of re-guarantee institutions, and measures for the administration of cross-province branch institutions.

"As to whether the capital operation of (financing guarantee institutions) will be further liberalised, it is still under study." At present, financing guarantee institutions can use 20% of their currency funds in operations not subject to restriction or prohibition, while the remaining 80% of funds can be invested in products generating fixed income such as government bonds and financial bonds.