Xu Zhong
PBC, June 2010
The views expressed in this paper are the views of the author(s) and do not necessarily reflect the views
or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they
represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any
statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make
any representation concerning the same.
Main Messages
• SME development is at the core of China’s
economic transformation and of avoiding trap
of middle-income
• Main impediments for SMEs in China
– Gov’t vs. market
– Finance
• Finance
Main impediments
• Finance
– Lack of eligible collateral
– Large financial institutions focus on large
projects/enterprises
– Lack of small-sized financial institutions, or
privately owned financial institution
Promoting policies
• Issues
• An enabling environment
Enterprises by scale
Criteria
Enterprises surveyed
Fund
Human Resource
Market
Technology
Land
100%
90%
80%
Others
70%
Private
60%
Collective
50%
SOE
40%
30%
20%
10%
0%
1996 1997 1998 1999 2000 2001 2002 2003 2004