In the first eight months of 2018, there were 22 enterprise bond defaults, 18 of which were made by private enterprises, involving more than RMB 50 billion. These statistics show that it is difficult for private enterprises to access financing.
To deal with this problem, the PBC has introduced a policy mix of “three arrows” targeting at smoothing the three major financing channels I mentioned just now. The first arrow is to enhance credit support for private enterprises.