Financial innovations set to boost lending to SMEs
Updated: 2013-08-07 10:05
China is asking local governments to support small and micro sized enterprises--because they provide the most jobs but get the least financing. Many cities are now fast-tracking loans for smaller firms in the tech sector.
In today's special series of "Innovate to Reinvent", reporter Yin Hang visits IT companies in China's central and eastern regions to see how local governments there---are stimulating high-tech SME growth.
No properties, no existing orders, no offices or equipment. Grandiose ideas are all that exists and no one is certain whether they can be carried out. That's why a lot of start-up micro firms in the high-tech industry were given the cold shoulder when they asked banks for loans.
But now, a change in attitude. Chinese banks are drumming up more financing support to small and micro firms in the high tech industry. This is a new push by China's banking regulator to support the sector.
"With a registered capital of ten million yuan, Xu Nianlong started his company in 2011. And as his ideas and innovation being recognized and welcomed by more of his customers, his need for more capitals is also growing." Yin Hang said.
Xu's company offers internet platform services for businesses who are seeking online promotions. As his new orders expand by the day, Xu discovered his thirst for additional capital.