The Chinese government released on October 11, 2023 the Guidelines of the State Council on Further Facilitating the High-quality Development of Inclusive Finance, in an effort to strengthen policy guidance and governance collaboration.
The document specifies the guiding thoughts, basic principles and primary objectives for the high-quality development of inclusive finance over the next five years. To this end, it proposes a raft of policies and measures, including making better use of financial and fiscal policies, increasing the usage efficiency of the special funds, and implementing the rewards and subsidies allocated from the central finance. It also urges to implement the management systems for the write-off of bad debts in financial enterprises, make disposal of non-performing loans in the field of inclusive finance more efficient, and implement the policies of exempting VAT on loan interest income of key groups in inclusive finance, such as micro and small enterprises, self-employed households and peasant households