China's industrial sectors have been struggling because of declining prices and slugging demand. (Photo : Reuters)
In an official statement released on Tuesday, the government has outlined its new measures that aim to support the country's industrial sectors, the Global Times reported.
The set of policies are expected to ensure "stable growth, structural adjustments and effectiveness," the article stated.
Experts also lauded the move stating that the measures will significantly help the sectors that are already struggling because of sluggish demand, excess capacity and dwindling prices.
Under the measures, which were published through the official website of the People's Bank of China, fundraising issues will be tackled during a so-called transitional period. Moreover, financial support will be increased to bolster supply-side reforms.
The statement also provided details on specific resolutions that will address various issues. These include the increase of credit policy and monetary support for industrial sectors and the enhancement of the capital and insurance markets' backing for firms in the said sectors.
The statement also calls for innovation in the companies' fundraising systems.
Chen Yao, a research fellow at the Chinese Academy of Social Sciences' Industrial Economics, said that China's "industrial sectors are going through a tough time right now."
The expert noted that companies are in need of financial resources "to move forward during this transitional period."
Chen told the Global Times that the measures can be beneficial in implementing supply-side reforms as industrial firms will now be provided with easier and more economic fundraising channels.
Nonetheless, he warned that struggling industries still need to innovate means on how to fuel and sustain growth without "relying too much on the government."
Research Center of the China Society of Macroeconomics director Tian Yun also remarked that measures advanced by the government should have a firm focus.
"They should focus on companies that really need the help right now," Tian stated.
Also included in the roster of proposals are facilitating mergers and restructuring among industrial companies. The statement also encouraged helping firms to expand their operations globally.
Apart from the central bank, the proposals were jointly released by the National Development and Reform Commission, the China Securities Regulatory Commission and the Ministry of Commerce.
