Local government creates more finance channels for companies

In a bid to support the operations of medium and small-sized enterprises or SMEs, the local government of Xifeng county – administered by Guiyang, capital of Southwest China's Guizhou province – is said to have created a number of channels to address their various funding problems.

Authorities have set up a dialogue platform for financial institutions and enterprises for the promotion of bank loan products and finance guarantee policies. Last year, the local government organized over 10 match-up activities for enterprises and financial corporations, got departments to visit SMEs more than 50 times, and solved an estimated 30 practical issues.

Financial institutions are being urged to allocate their credit information databases and constantly adjust the risk evaluation mechanism targeting SMEs, to ensure that more of these can get unsecured loans. In addition, they are also being advised to expand their loan volumes and lower loan interest rates to benefit more local firms.

To date, 50 SMEs in Xifeng have received 444 million ($69.75 million) in loans.