China to promote direct financing

%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20State%20Council%20announced%20Wednesday%20that%20it%20supported%20the%20development%20of%20direct%20financing%20to%20reduce%20production%20costs%20for%20enterprises.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThrough%20direct%20financing%2C%20enterprises%20can%20get%20funds%20from%20the%20capital%20market%20by%20issuing%20shares%20or%20bonds%2C%20rather%20than%20from%20costly%20intermediary%20institutions%20like%20banks%20or%20insurers.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20will%20establish%20%22a%20strategic%20emerging%20board%22%20on%20the%20Shanghai%20Stock%20Exchange%2C%20which%20lists%20innovative%20enterprises%20and%20startups%2C%20according%20to%20a%20statement%20released%20after%20a%20weekly%20State%20Council%20executive%20meeting.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20government%20will%20study%20the%20possibility%20that%20securities%20brokerages%2C%20fund%20companies%20and%20futures%20traders%20could%20conduct%20the%20other%20two%20businesses.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Eligible%20financial%20institutions%20will%20be%20gradually%20allowed%20to%20apply%20for%20licenses%20to%20broker%20securities%20trading%2C%22%20said%20the%20statement.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20government%20also%20supports%20the%20development%20of%20private%20equity%20firms%2C%20including%20angel%20investment%20and%20venture%20capital%20investment.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20addition%2C%20China%20will%20step%20up%20supervision%20over%20rating%20agencies%2C%20accounting%20companies%20and%20law%20firms%20to%20secure%20a%20sound%20environment%20for%20the%20capital%20market.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThese%20measures%20follow%20Chinese%20leaders%20vowing%20to%20reduce%20financing%20costs%20for%20enterprises%20during%20the%20policy-setting%20Central%20Economic%20Work%20Conference%20earlier%20this%20week.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China.org.cn%29%3CBR%3E%3C/FONT%3E%3C/P%3E