China sets up special fund to support SMEs

Friday, October 6, 2006

China has set up a special fund to support the development of small and medium-sized enterprises (SMEs), said China’s Ministry of Finance (MOF).

The funds, which come from the central government’s budget, will offer China’s SMEs free financial aid and loan repayment subsidies of up to 2 million yuan (250,000 U.S. dollars) per project, according to a policy document issued by the MOF and the National Development and Reform Commission.

The MOF said the fund aims to promote the development of SMEs, help them make technological progress, make it easier for them to cooperate with large firms and improve the overall development environment.

The policy stipulates that self-financed projects, including fixed assets projects or projects aimed at bettering an SME’s development environment, are eligible for free financial aid.

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Source: People’s Daily Online (link opens in a new window)