Business     

Fair seeks to bolster funding to SMEs

Shanghai Daily, September 22, 2011

• A record number of financial institutions will participate in a two-day small and medium-sized enterprises fair to be held in Shanghai from next Monday amid a concerted push by the government to promote and increase financial services to small businesses.

  More than 150 financial institutions may exhibit at the fair which is expected to attract 150,000 visitors from SMEs and the financial sector, the Shanghai Financial Services Office said yesterday.

  Besides banks, small-sum credit companies, insurers and guarantee firms will take part in the fair for the second time since 2009. The fair was not held in 2010 due to the hosting of the World Expo.

  "The fair will focus on alternative channels (of financing) and innovative products to solve SMEs' difficulties in borrowing," said Fan Yongjin, deputy head of the office. "We will encourage the enterprises to raise funds through issuing bonds and equities, and let them choose from a variety of products in the 'financial supermarket.'"

  Small companies create 80 percent of the jobs in Shanghai and contribute 70 percent of the city's business revenue, official data showed. But they face funding problems as they lack collateral to secure credit from banks.

  Shanghai has allocated 3 billion yuan (US$470 million) in fiscal support to boost financing to SMEs.

  Banks in Shanghai have lent 651.9 billion yuan to SMEs in the city by July, nearly 9 percent more than at the beginning of this year.

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