The government will expand financing channels and introduce several pilot programs to boost the economy of its northeastern region to dispel fears of diminishing returns and a worsening business environment in the region, according to an official from the country’s top economic regulator.

Zhou Jianping, head of the National Development and Reform Commission’s department responsible for the rejuvenation in the northeastern region, said the government is also considering preferential policies to boost economic confidence in the region.

It will also come out with pilot programs, including lower assessment criteria for the private banks in the region and a broader collateral base for debt-laden companies to cope with challenges, according to an official with the commission who declined to be named.

Both officials made the remarks during a ceremony to mark the launch of a new financial scheme for the northeastern region on Jan 5.

More than 40 financial institutions, including both State-owned banks and private securities companies, will hold meetings in the region on a regular basis.

They will also help enterprises with more financing channels and in identifying financial risks.

In addition, they will also publish reports and consult local governments on policies to help attract more companies.

Long dominated by State-owned enterprises, China’s northeastern region has been facing a recession in recent years.

Defaults have been mounting in the region as private borrowers struggle to repay their loans amid economic headwinds.

It was not until recently that some economic indicators started improving.

During the first three quarters of 2017, growth in valued-added output of the three provinces in the northeast, namely Liaoning, Jilin, and Heilongjiang, stood at－6.2, 4.9 and 2.1 percent from a year ago.