Herders transfer their goats to a warmer pasturing area after heavy snowfall hit Hami, Xinjiang Uyghur Autonomous Region, Sept. 12, 2014. (Photo : REUTERS/Stringer)
China's regulators, led by its central bank, released a guideline in providing financial support to the southern part of Xinjiang Uyghur Autonomous Region.
The guideline seeks to adopt favorable monetary policies that will trigger more credit supply to the area, especially for farmers and small firms.
The People's Bank of China, the country's central bank, also encourages commercial banks to set up branches in southern Xinjiang, primarily to help agriculture and small companies, and that financial support will be offered to major infrastructure projects.
The policy also aims to persuade banks to improve tolerance on non-performing loans.
According to Huang Pingchao, a director at Xinjiang government's department of commerce, southern Xinjiang needs huge investment and the supporting policies will boost investors' confidence.
He added that the Xinjiang government is planning to set up a bank dedicated to serve the southern area.
Xinjiang Academy of Social Sciences research fellow Turgunjan Tursun noted that continuous efforts should be made to ensure the implementation of these policies.
Southern Xinjiang's small companies, which focus on farm produce processing and handicrafts, are the main job providers.
The statement also noted that innovation in cross-border yuan services should be facilitated, which could boost trading with neighboring countries like Kyrgyzstan and Afghanistan. But more efforts will be made to stop terrorism-related money laundering.
Hundreds have been killed in Xinjiang due to conflict between the Muslim Uyghur who live in the region and ethnic majority Han Chinese.
Foreign experts and rights groups noted that sales of Xinjiang resources have gone mainly to Han Chinese, causing resentment among Uyghurs.
