Micro firms handed a boost, thanks to new breed of private banks

Things for Peng Jindong's small e-store, which mainly sells street-dance wear on the leading Chinese online marketplace Taobao, first took off when he obtained a non-collateral credit line of 1 million yuan ($148,000) a few years ago from Zhejiang E-commerce Bank Co Ltd, one of the first five private banks established in China as pioneers of a pilot program.

That was later extended to 2 million yuan after the bank used big data to analyze potential risks.

With the help of the loan, Peng contracted a small clothing factory, and hired five fashion designers and more than 10 employees. He also rented a 1,000-square-meter office and a similar-sized warehouse in Hangzhou, Zhejiang province. He now owns a clothing brand called Mmaicco, specializing in men's sweaters.