Chinese government asks financial sector to provide more support to the real economy.

247, with Xinhua - Chinese Premier Li Keqiang called on Friday (4) for financial institutions to better serve the real economy and take effective measures to address the financing barriers that companies face.

Maintaining stable employment depends on numerous small and micro-enterprises, whose development requires the support of inclusive financing, a promising and beneficial cause, Li stated during a visit to the Bank of China, the Industrial and Commercial Bank of China, and the China Construction Bank.

Li encouraged state-owned banks to take the lead in providing services to private companies and small and micro-enterprises, establishing brands of inclusive finance and boosting market vitality and corporate sector confidence.

Following the visit, Li held a meeting at the China Banking and Insurance Regulatory Commission, requesting greater policy support for the real economy, private enterprises, and in particular micro and small enterprises.

Li said the government will continue to pursue progress while maintaining consistency and stability in macro policy and promoting countercyclical adjustments.

Policy support may include tax cuts and both general and targeted reductions in reserve requirements.

The key for the financial sector to serve the real economy is to address the need to keep economic growth within a reasonable range and stabilize employment, he noted.

He stressed that China will maintain a prudent monetary policy "neither too tight nor too loose," keep market liquidity at a reasonably ample level, and make financing more accessible, with better prices for the real economy.

Efforts will be made to further develop direct financing, while comprehensive regulation will be improved to prevent systemic and regional financial risks, he added.

The Chinese central bank announced on Friday a one percentage point cut in the reserve requirement ratio to increase lending sources for the real economy.