Emergency funds established to aid capital-deprived SMEs

Local governments in Zhejiang province are setting up emergency funds for small and medium-sized enterprises that have failed to obtain loans from banks or other agencies underwritten by guarantee companies.

It is not the first time that regional governments have launched emergency funds to help SMEs.

The Xiaoshan district of Hangzhou raised an emergency fund of 500 million yuan ($78.5 million) in 2008, when the global recession hit.