Funding small businesses

CNC report from China's southern regions
Added On August 13, 2013

China will expand direct financing channels in a bid to aid cash-strapped small businesses.

The country's cabinet, the State Council, announced on Monday that a more comprehensive and multi-level capital market will be developed to encourage direct financing for small businesses.

The State Council says finance access standards on the Growth Enterprise Market will be moderately relaxed for growth- and innovation-based enterprises.

The government will also build a sound National Equities Exchange and Quotations for small and medium-sized enterprises.

Experts say that after a long period of hesitancy from central authorities, they are now making substantial efforts to lift control on funding small businesses.

Some say it could be seen as a serious move to combat international worries over China's economic slowdown.

With the economy slowing for several quarters, the government is looking to small businesses to stabilize growth and employment.