October 08, 2008

China to allow SMEs to participate in minerals exploitations

Ms Liang Yan deputy director general of department of small and medium sized enterprises under National Development and Reform Commission at the 4th China International Small and Medium Enterprises Fair on September 15th 2007 said that small and medium sized enterprises will be allowed to set foot in the exploitations of some important mineral resources,

According to her, China will encourage, support and guide small and medium sized enterprises to take part in the reform of state owned enterprises and enter fields such as financial service, public service and infrastructure. Ms Liang said that China would improve and perfect multilevel capital market system, strengthen SMEs plate in securities market and expand their direct financing channels.

Mr Zhang Hongli vice minister of Ministry of Finance said on the same occasion that China would map out detailed policies to give priority to products and services provided by SMEs.

So far 12 provinces and municipalities have hammered out SMEs Promotion Law almost all provincial financial departments have set up special funds to support the development of SMEs; credit guaranty agencies for SMEs add up to over 3000 covering nearly CNY 500 billion.

SMEs have been a significant impetus to China's economy. By the end of 2006, there are over 4.3 million registered SMEs in China contributing over 60% of the country's GDP and employing over 43% of working population. In recent years Chinese government has been determined to support SMEs, which are involved in over 70% of government purchasing contracts.

(Sourced from MySteel.net)