Private economy. Photo:VCG

China’s small and medium-sized enterprises (SMEs) are off to a good start in 2024, with business activities picking up in January, according to an industry survey released on Wednesday, as a slew of policy measures and the continued economic recovery help improve sentiments among SMEs.
 
The Small and Medium Enterprises Development Index, calculated based on a survey of 3,000 SMEs, came in at 89.2 in January, up 0.2 points month-on-month, higher than the same period in 2023, according to the China Association of Small and Medium Enterprises.
 
Ma Bin, vice president of the association, noted that localities have stepped up production to make a good start in the first month of 2024. In addition, thanks to the continuous recovery of consumption demand boosted by the New Year and Spring Festival, combined with supporting policies, the development confidence of the SMEs has been enhanced.

According to the association, the SMEs’ market expectations gradually improved last month, leading to a rebound in their willingness to invest. Specifically, six of the eight sub-industry indices were up in January, with the industrial and information transmission software sectors leading all sectors in terms of improvement.

Ma said that since the end of 2023, large and key projects across the country have started construction, as the National Development and Reform Commission has set up a platform to promote projects for private capital across the country, which greatly spurred the confidence of private enterprises. These large projects have also brought new orders for private firms and SMEs.

The coordination of China's fiscal, monetary, employment and industrial policies has become more obvious. The effects of tax and fee reductions have continued to be tangible. The central bank's reduction of the reserve requirement ratio for financial institutions earlier this month also further reduced the financing costs of SMEs.

In addition, the country has also made efforts to optimize the environment for the development of the private economy, creating special industrial clusters of SMEs with strong innovation capabilities, guiding large enterprises to open up all kinds of innovative resources to SMEs, which will provide a sustained impetus for SMEs' development, the association noted.
 
Global Times