Translated with AI
Chinese authorities have announced the launch of a special government guarantee program totaling 500 billion yuan, equivalent to approximately US$71.42 billion, aimed at supporting investment by micro, small, and medium-sized private enterprises.
The Chinese government reportedly announced the decision to launch the program on Tuesday. The initiative will be implemented through the State Financing Guarantee Fund and will run for two years.
According to a circular issued by the Ministry of Finance of the People's Republic of China jointly with several other central agencies, the program will cover a wide range of private business financing needs. Specifically, it provides support for both medium- and long-term loans and financing for ongoing production and business operations.
It is noted that the guarantees will apply to projects related to the expansion of factory buildings, the renovation and modernization of retail outlets, as well as the replenishment of working capital necessary for business operations.
The launch of this program is aimed at creating more favorable conditions for the development of private micro, small, and medium-sized enterprises, expanding their investment opportunities, and increasing the sustainability of businesses in the real sector of the economy.
