Since the outbreak of COVID-19, Beijing's Chaoyang district has helped over 1,600 small- and medium-sized enterprises (SMEs) to ease their financing difficulties.

"The scale of SMEs may be small, but they play an important role in promoting innovation and high-quality development," explained Chen Qun, vice director of the Financial Service Office of Chaoyang District. He added that access to finance remains one of the biggest challenges for SMEs, which account for more than 80% of market entities in the district.

Last year, the city's first financial service platform was launched in Chaoyang district, with the aim of providing a variety of services to help SMEs get finance. The platform has since attracted a total of 35 financial institutions, including China's major banks, and 6,300 companies have registered on the platform.

To help small businesses hit hard by the COVID-19 outbreak, the platform has helped over 1,600 companies obtain financial support from financial institutions, with combined loans totaling 5 billion yuan (US$700 million). 

For companies engaged in cultural and creative sector or technology industry that may lack collateral or have encountered difficulties obtaining finance through traditional methods, Chaoyang district has utilized fintech to provide digital financial services to small businesses. So far, SMEs have secured a total of 2.1 billion yuan through this new financing approach. 

In addition, the district has set up special funds to help SMEs with liquidity issues. Each company can receive a maximum of 10 million yuan in credit lines with a period of up to three months.

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