The problem of high borrowing costs, especially for smaller businesses, was addressed by the General Office of the State Council in a 10-measure guideline.

The measures include

-- maintaining a reasonable credit growth and a stable monetary policy -- Curbing the irrational rise of funding costs among financial institutions

-- eliminating redundant financing procedures for enterprises

-- cancel unreasonable charges for financial services

-- improving loan approval procedure

-- improving the evaluation of commercial bank performance

-- speeding up the development of small- and medium-sized financial institutions

-- boosting the development of direct financing a multi-level capital market

-- promoting the roles of insurance products

-- interest rate reform

Commercial banks must improve credit management to ensure that loans end up in the real economy and financial regulators have to pay more attention to shadow banks and inter-bank business.

Although China's overall money and credit supply is not low, enterprises still have difficulty accessing funds and face high costs that jeopardize the broader economy.