Guangdong SMEs to get 6.6b yuan lift

Updated: 2015-07-07 07:19

By Zheng Caixiong in Guangzhou(HK Edition)

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Guangdong province is introducing concrete and effective measures to help the province's myriad of private-run small, medium and micro-sized enterprises (SMEs) expand their financing channels.

Liu Zhigeng, vice-governor of the province, said SMEs are playing a big part in Guangdong's economic development and the provincial government should spare no effort to increase its support for these businesses as the province is facing economic downward pressure.

At a press conference on Monday, he said the Guangdong provincial government will invest more than 6.6 billion yuan ($1.06 billion) in three years starting this year to help SMEs overcome their difficulties in expansion and financing activities.

"Top priority will be given to companies in such industries as intelligent manufacturing, high-end equipment, biomedicines, new energy and energy-saving environmental protection, and companies in the province's eastern, northern and western rural areas," he said.

Guangdong SMEs to get 6.6b yuan lift

"Banks and financial organizations in the province should actively develop small loans for the SMEs to help overcome their difficulties in financing."

According to Liu, the Guangdong government will also establish a special fund for the development of SMEs later this year, while encouraging them to open multi-channels to raise funds from financial markets.

Liu said the provincial government would try to improve the environment for SMEs to aid their future expansion in the following months.

The Administrative Bureau of SMEs under the Guangdong Provincial Economic Commission has issued a circular to ban random inspections and collection of extra fees from SMEs in order to further safeguard their legal interests.

Kuang Renshan, deputy director of Guangdong provincial government's finance office, said his office has now mapped out special policies and regulations to help bail out these enterprises that are in the red because of inadequate funds for expansion and development.

He called for further collaboration between small loan companies and SMEs.

By the end of March, Guangdong had registered a total of 487 small loan companies with a total registration capital of 66.2 billion yuan.

"And, small loan companies have offered loans valued at 75.8 billion yuan to Guangdong's SMEs," Kuang said.

By late May, Guangdong - one of the country's economic powerhouses - had registered about 480,000 privately-run SMEs, with investments of more than 500 billion yuan and employing more than four million people.

(HK Edition 07/07/2015 page8)