China to further cut financing cost for small, micro firms: premier

China will further cut the financing cost for small and micro firms by another one percentage point this year, Premier Li Keqiang said Friday.

Serving the real economy is the bounden duty of the financial sector, Li said at a press conference after the conclusion of the annual session of China's national legislature.

A staff member works at a factory producing food preservatives in Hai’an, Jiangsu Province on July 1, 2018. [File photo: IC]

"We need to encourage financial institutions to enhance their internal management system and provide more services to private companies and to small and micro firms to reduce financing cost," Li said.

China will also pay attention to forestalling systemic financial risks. No new loans will be made to "zombie companies" which are no longer solvent, and illegal and non-compliant activities will be seriously dealt with, according to him.

"China is fully capable of forestalling systemic financial risks," Li said.

The enhancement of financial services and prevention and forestalling of financial risks are mutually reinforcing, Li added.