China to launch 3 RMB bln SMEs fund by year-end

A venture investment fund worth RMB 3 billion will be established by the end of this year in a bid to further help the SMEs to cope with the unfolding financial crisis, the China Securities Journal reported.

The fund was initiated by the China Association of Small and Medium Enterprises (CASME).

Meanwhile, a bank specializing in providing loans and other financial services for SMEs is also expected to be established, with a registered capital of RMB 10 billion.

Companies with sales revenue up to RMB 300 million may apply for financial assistance from the fund and the bank, according to an official with CASME.

China's SMEs accounts for 60% of the GDP, but are only granted around 25% of total bank loans.