China has set its GDP growth target at 6-6.5 percent for 2019, said Premier Li Keqiang when he delivered a government work report at the opening meeting of the annual legislative session. He said state-owned larger commercial banks must increase loans to small and micro firms by at least 30% this year, and China will reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan this year.
China will announce more targeted reductions to required reserve ratios for small and medium-sized banks, and capital unleashed from these measures will be used to meet financing needs of small and private companies. Large banks are encouraged to replenish capital through different means and increase medium and long-term credit supply to the manufacturing sector.
The country will lower the share borne by employers for urban workers' basic aged-care insurance, and local governments may cut contributions down to 16 percent, but they must ensure that small firms' social security payments will not be increased.