The Chinese central government is stepping up efforts to provide financing to small and medium-sized enterprises as part of broader measures to support to the real economy.
The latest figures released by China’s State Financing Guarantee Fund (国家融资担保基金) indicate that as of the end of 2018 its fund re-guarantee cooperative operations had reached 32.6 billion yuan in scale, providing guarantees to 25,245 borrowers.
Borrowers with financing of under 5 million yuan accounted for total guarantee sum of 19.7 billion yuan, or around 60% of the total.
The State Financing Guarantee Fund was established by China’s Ministry of Finance with the goal of easing the financing difficulties of the country’s small and medium-sized enterprises, as well as in response to calls from the 13th National People’s Congress for the “accelerated establishment of a financial guarantee fund and expanded vigour of financial support.”
“During the process of the establishment of the fund we fully adopted the opinions and recommendations of the National People’s Congress with regard to establishing a bank guarantee cooperative shared-risk mechanism and leveraging the joint participation of financial institutions; scientifically formulated a fund establishment plan and firmly advanced various forms of work,” said an official from MOF to central bank media.