The Shanghai Bureau of the China Banking Regulatory Commission has urged commercial banks and rural credit cooperatives in the city to support the development of three kinds of small- and medium-sized enterprises (SMEs).
They include those in the manufacturing, services and trade that do outsourcing jobs for key sectors and mainstream enterprises or key projects; those qualified in the trade service and hi-tech enterprises.
Though Shanghai's financial institutions have strengthened their support to SMEs since the country began the macroeconomic control this year, money supply is still short of demand, because commercial banks are still too cautious in their offer of loans to SMEs, especially privately owned ones for fear of stock market risks and some commercial banks had a one-sided view of the macroeconomic control policy.
Source: Asia Pulse
