Government to Support SMEs

Vice director of the Guangdong Economic and Trade Bureau, director of the Guangdong Small and Medium-sized Enterprises (SMEs) Bureau Liu Huanquan told the press yesterday (November 16) that in the first 9 months of this year, 7148 SMEs have closed down. However, he denied that there is a SEMs bankrupting tide. Our journalist Li Hongzhong has more:

Liu Huanquan pointed out that the companies that have gone bankrupt are mainly from the Pearl River Delta. The majority of them are traditional, labor-intensive and high consumption industries such as textile, hardware, plastics, electronics and ceramics.

"From another perspective, the Pearl River Delta is going through an important period of industrial transfer. Quite a few of the companies that have closed were targeted by the government's industrial transfer strategy. It explains why Pearl River Delta has seen so many SMEs close."

Liu also stressed that to support the development of SMEs, financing is the biggest issue:

"To solve financing problems and to accelerate the construction of a credit guarantee system, the Guangdong government has decided to allocate 100 million Yuan to set up a re-guarantee company. It shows that the government attaches great importance to this issue."

6 billion set aside for low-rent and affordable housing

The Guangdong Department of Construction has decided to invest 6 billion Yuan annually to build low-rent and affordable housing. In addition, the authority will take a series of measures, such as relaxing tax and land policies, increasing the housing accumulation fund and mortgage loan cap, and extending the loan period to boost real estate consumption.

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