China to Provide RMB1 Billion Credit Guarantee for SMEs

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Oct. 31 – According to the Ministry of Finance, China is providing a RMB1 billion credit guarantee for small and mid-sized enterprises (SMEs).

This should ease their financing woes and help development. The RMB1 billion fund will be used to cover losses and risks of financial institutions that provide credit to SMEs.

So far, the country has already provided RMB1.8 billion in credit guarantee for these types of enterprises.

China has been encouraging the growth of SMEs and has even provided RMB1.9 billion for developing technical innovation, and increasing tax rebates for exports. SMEs have been one of the hardest hit sectors due to the slowing market demand.