SMEs seek non-bank finances

SHANGHAI: An increasing number of small and medium-sized enterprises (SMEs) in the city are turning to non-bank options of financing as the government continues the credit tightening measures.

Among these, stake transfer in assets and equity exchange and pawning are becoming two of the hottest ways of financing for SMEs, which usually find it difficult to obtain bank loans.

Statistics from the Shanghai United Assets and Equity Exchange (SUAEE) show 926 transactions were completed in the first half, amounting to 23 billion yuan, up 211 percent from the same period last year. Of this, the stake transfer from real estate companies increased sharply, with the amount jumping nearly 60 percent to 8.9 billion yuan.