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China supports SMEs with special funds

05-04-2012 08:19 BJT

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As the latest HSBC PMI reading shows, China's small and medium-sized enterprises are still hurting. And a bit part of that is liquidity pressures. China's Ministry of Finance said on Thursday that it's working on methods to adjust capital management, and will speed up the rollout of special funds to the country's SMEs.

According to the Ministry of Finance, there are five types of special funds to support SMEs. All of them are used to support SMEs to strengthen their technology, adjust structure, expand markets and improve the quality of public service.

Lu Qingping, inspector of enterprises department of Ministry of Finance, said, "To solve SMEs’ difficulties, the central government will expand special funds to around 14 billion yuan in 2012. We will strengthen support to SMEs and enterprises in central and western China. Meanwhile, we are also focusing on improving methods of capital support and enlarging coverage."

Out of the five types, SME development fund is the latest, which is made up of the central government budget, fund profits, donations and other sources. The central government has arranged for 15 billion yuan to be injected into this fund over the five years. Three billion of that will be added this year.

What makes the latest fund different from others is that it is not totally for free, but more like a venture capital fund.

Lu said, "The purpose is to lead the local funds, venture capital institutes and other public capital to jointly support the development of SME start-ups."

Conditional or not, the money serves one purpose - to help SMEs survive a critical and delicate period in their development.

 

Editor:Zhang Rui |Source: CNTV.CN

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