# SMEs
Latest news and articles about SMEs
Total: 6 articles found
PBOC Signals Targeted Credit Push for Tech, Consumption and SMEs While Urging Market-Based Cleanup of Local Debt
The People's Bank of China set a 2026 agenda of targeted credit support for strategic sectors — including technology, green projects, consumption and SMEs — while pressing ahead with market-based resolution of local government financing platform debt. The central bank signalled a calibrated approach that pairs sectoral credit expansion with ongoing risk containment and closer fiscal coordination.
Beijing Rolls Out 500 Billion-Yuan Guarantee Scheme to Kick‑start Private Investment
China has unveiled a two‑year, 5,000‑billion‑yuan guarantee programme to boost private and SME investment by expanding government risk sharing, cutting guarantee fees and encouraging longer‑term lending. The targeted scheme aims to support equipment, digital and consumption‑related upgrades while limiting direct fiscal exposure through eligibility rules and performance incentives for local guarantee bodies.
China Pledges Bigger, Smarter Spending in 2026 as Fiscal Push Shifts from Quantity to Quality
China’s finance ministry has pledged that public spending will rise in 2026 while shifting focus to more efficient, targeted outlays. The statement follows a large 2025 fiscal expansion — including an elevated deficit and heavy bond issuance — and is accompanied by measures to stimulate consumption, support enterprise innovation, and clean up local fiscal practices.
Beijing Offers Interest Subsidies to Spur SME Investment in Strategic Supply Chains
China’s Ministry of Finance will subsidise 1.5 percentage points of interest on qualifying fixed-asset loans to private small and micro enterprises in targeted industrial chains, effective from January 1, 2026. The one-year pilot caps subsidy per loan at RMB 50 million and channels support through a designated set of banks with central–provincial coordination and auditing mechanisms.
Beijing Offers 1.5-Point Interest Subsidy to Spur Equipment Upgrades — A Boost for Industry and SMEs
China has launched a central fiscal interest subsidy of 1.5 percentage points on fixed-asset loans for equipment upgrades, payable from loan disbursement and capped at two years. The scheme expands supported sectors, appoints 26 banks as implementers, simplifies payment procedures through pre-allocation and settlement, and runs through at least the end of 2026.
PBOC’s First Targeted Rate Cut of 2026 Lowers Bank Funding Costs to Boost SMEs, Tech and Green Transition
The People’s Bank of China cut re‑lending and rediscount rates by 25 basis points on 19 January 2026, lowering the cost of earmarked funding for banks to encourage lending to small enterprises, technology, manufacturing upgrade and green projects. The step is a structural, targeted easing rather than a broad policy-rate cut, and signals Beijing’s preference for directed credit support while keeping overall interest-rate policy stable.