Cui Honggang, Party secretary of Tai'an city and a deputy to the second session of the 13th National People's Congress. [Photo/iqilu.com]

The government should accelerate system innovation and solve the financing difficulty of private enterprises, said Cui Honggang.

Cui, a deputy to the second session of the 13th National People's Congress and Party secretary of Tai'an city in East China's Shandong province, made the remarks during a panel discussion regarding the report on the government work.

He pointed out that thanks to the effort of local government, the problem of financing difficulty of private enterprises has eased down. However, the current financial system has only granted short-term loans to private enterprises, while the mid-and long-term credit and equity capital are still seriously insufficient.

According to Cui, small and medium-sized enterprises are the largest in number, suffer from poor credibility or no credibility, have few assets for mortgage, with incomplete financial system as well as small but frequent capital demands. The banking sector doesn’t dare to make loans to them so readily. Even when they agree to lend, the lending conditions are relatively harsh. In order to develop, these enterprises usually have to raise funds from informal financial activities.

Cui proposed to further refine the financial policies to support the development of private economy, explore the pledge modes of trademark right, intellectual property right, equity right and accounts receivable, and customize financial products according to the actual situation of private enterprises.

In addition, he suggested that a multi-layer small and medium-sized capital market system should be established to provide services, especially to small and medium-sized enterprises.