China unveils measures to boost financing for businesses

China will introduce an innovative quality financing and credit enhancement policy to ease financing challenges for small and micro-sized enterprises, as well as a guideline to support platform companies to use online traffic efficiently, according to a State Council conference on Monday.

Luo Wen, head of the State Administration for Market Regulation, said the market regulator will work with other ministries to promote companies' technological capabilities and quality qualifications for financing basis.

Together with equity, funds and bond-based financing tools, the country aims to generate a credit enhancement and financing quota of 300 billion yuan ($41 billion) each year to help address the financing challenges of SMEs, Luo said.

Meanwhile, the SAMR will roll out a guideline to encourage online platforms to allocate more online traffic and resources to SMEs, especially to new entrants and agricultural firms.

Luo said this will help businesses tap into larger audiences during major promotional events and enhance their ability to utilize online traffic more efficiently.

"Altogether, such efforts are expected to address some challenges faced by SMEs during their operations, and drive them to higher-quality development, so as to inject more vitality into the market," he added.