Guangdong pledges US$6b help for struggling SMEs

The Guangdong provincial government will set aside US$5.86 billion (RMB40 billion) to bail out struggling small and medium-sized enterprises (SMEs) in the province, China Business News reported. Wang Yang, party boss of the southern China province, said the money will help SMEs relocate their facilities to remote areas in the province to reduce rental, water and electricity costs. Burgeoning input and rental costs have forced many SMEs to exit the market. In the first five months of the year, 35,000 firms cancelled their registration in the province, up 35.7% year-on-year. Figures from Shenzhen’s statistics bureau show 599 firms withdrew from the city alone, most of which were electronics, machinery, plastics, garment and furniture manufacturers. Liu Huanquan, director of the provincial SME bureau, told the newspaper the provincial government would spend more than RMB40 billion in either direct or indirect payments to local SMEs over the next few years.