Private economy. Photo:VCG

An index gauging the development of China’s small and medium enterprises rebounded significantly in the third quarter as a range of the government’s pro-growth measures take effect, according to data released by China Association of Small and Medium Enterprises CASME released on Tuesday.

The China Small and Medium Enterprise Development Index saw a further increase of 0.2 points in the third quarter, hitting 89.2, after experiencing a decline of 0.3 points in the second quarter, the data showed.

Xie Ji, head of the CASME, said that the index of 89.2 has neared its highest level in two years and attributed the growth to the introduction of a series of combined government policies.

Among the sub-indices, the macroeconomic sentiment index, a measure for enterprise confidence, rose by 0.5 points, recording its largest increase. 

Additionally, the input index and market index also indicates significant rebounds, reflecting increased willingness among enterprises to expand investment and a gradual recovery of market expectations. 

Among the sub-industry indices, the industrial index saw the largest increase of 0.4 points.

China has rolled out a slew of supportive policies to boost private companies and small firms during the third quarter.

On July 19, Chinese authorities issued a 31-point guideline to boost the growth of the private economy, committing to improve the overall business environment, enhance policy support and strengthen legal guarantees for future development.