Better financial services urged for small businesses

BEIJING - Financial services will be improved to guarantee credit growth and meet the huge demand of small and micro-sized businesses, Chinese Vice Premier Ma Kai said at a meeting on Monday.

"Financial services for small and micro-sized enterprises have been constantly improving in recent years, but it still lags far behind the development needs of those companies," Ma said.

He said the government will coordinate efforts to improve financial services for small businesses.

The country will make sure that the growth rate of loans to small and micro-sized enterprises is not slower than that of commercial banks' total lending, and the growth is no less than the previous year's increase, he said.

Ma encouraged commercial banks to be innovative in providing tailor-made services for small businesses and enhance information services for those companies.

He also called for developing small financial institutions, lowering financing costs and improving policy support for small businesses.

Chinese medium-sized, small and micro enterprises create 80 percent of the country's jobs, and contribute 60 percent of its gross domestic product and half of its total tax revenue.

However, those companies only get just over 20 percent of the country's total loans, according to official statistics.