Chinese banks up lending to SMEs

Will also improve financial environment for these firms.

The People's Bank of China, the central bank, described small and micro enterprises are an important force for economic and social development,

It noted that the complicated and unstable domestic and international economic situation was creating greater downward pressure on the Chinese economy.

In these circumstances, financial support for small and micro enterprises would help to maintain stable economic development, promote economic structural adjustment and enhance the internal dynamic of economic development.

China wants to transform its economy into one led by domestic consumption and demand from one focusing on manufacturing and exports. This transformation, however, has been complicated by China’s weak economic growth.

The government previously announced a series a measures to support businesses that include scrapping value-added taxes for small businesses. Other moves include steps to cut red tape for importers and exporters; simplifying rules for service industry firms needing foreign currency and allowing small firms to issue more bonds to help them raise cash.