The Asian Development Bank (ADB) signed a contract Friday with a Chinese firm to become a minority shareholder in China's leading private credit guarantee firm for small- and medium-sized enterprises (SMEs).
Under the agreement, ADB contributed an unspecified sum to the restructuring of Credit Orienwise Group enabling the company to grow further.
It has been reported that the bank invested US$10m in the Shenzhen-based Credit Orienwise, the largest privately owned credit guarantee company in China.
William Willms, an ADB principal investment officer, said SMEs are the key promoters of increased jobs, economic growth and development. However, more than 80 per cent of the SMEs in China have difficulty in accessing financial services and securing financing, while commercial banks lack experience and incentives for assessing SME credit risk.
