Financing Support Enhanced for Micro, Small Companies

A report from chinadaily on May. 23rd, 2025:

China has issued a guideline for stepping up financing support for micro and small enterprises, signaling the latest push for promoting a sector that is key to stabilizing employment and reviving the nation’s growth momentum.

The document, jointly released on Wednesday by the National Financial Regulatory Administration and seven other central departments, details 23 measures, including supporting MSEs to seek equity funding and increasing financial support for tech and innovative MSEs.

This marks a crucial step toward tackling financing difficulties for micro and small businesses and supporting their long-term development, analysts said on Thursday.

They added that the guideline is part of the country’s larger drive to stabilize the overall economy amid mounting external uncertainties and subdued domestic demand, which will significantly boost confidence and stabilize expectations among MSEs.

China has pledged to channel more resources toward key sectors such as foreign trade, tech and consumption, according to the document.

Key pillar

Micro, small and medium-sized enterprises are an important part of the national economy and social development, serving as a key pillar for stabilizing employment and improving people’s livelihoods.

Private enterprises, mostly micro, small and medium-sized companies, contribute over 60 percent of China’s GDP, 70 percent of technological innovation and 80 percent of urban employment.