The Asian Development Bank (ADB) has approved a technical assistance grant of US$550,000 to help China to finance its small- and medium-sized enterprises (SMEs).
According to the ADB, this will promote the development of SME credit guarantee companies through an effective policy, regulatory and operational framework.
It will also support institutional reforms and the financial strengthening efforts of credit guarantee companies, developing standardised procedures and templates for various aspects of their operations. SMEs account for almost half of the China's gross domestic product (GDP), provide 75 per cent of urban jobs and are growing faster than the larger state-owned enterprises.
However, more than 80 per cent of SMEs have reported difficulties in accessing financial services and securing financing due to limited banking services to them.
