China's SMEs struggle to jump the credit hurdle

Small and medium-sized businesses are finding it increasingly difficult to gain financial support in China and can be crippled by high interest rates while larger, state-owned companies are enjoying an easier ride.

Raising capital is a challenge for small and medium-sized businesses everywhere in the world. Some of these companies don’t have long track record of paying taxes, returning profits or having sufficient collateral. This problem is particularly acute in China where SMEs struggle to get access to credit in a state-controlled financial system.

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