China’s SMES see stable recovery in October

BEIJING: Vitality and recovery of China’s small and medium-sized enterprises kept improving in October as the country’s relief policies generated more tangible benefits, the latest industry data showed.

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMES, went up by 0.1 points to 87 in October and hit a new high since February, according to the China Association of Small and Medium Enterprises.

The index contains multiple sub-indexes to gauge the performance and expectations of SMES.

A reading below 100 indicates dented vitality. In October, the sub-indexes for the sentiment on the macroeconomy, operating cost, labor force, and financing were above 100, suggesting an upward trend in business. In general, nearly 97% of surveyed firms resumed operations.

In the accommodation and catering industry, which was hit particularly hard by the Covid-19 epidemic, the resumption rate reached 94.21%. The survey also showed eased cash strain, increased operating results, and stable investment enthusiasm among the firms, the association said, citing China’s pro-sme measures such as the central bank’s targeted monetary policies that lowered financing costs. A total of 50% of the respondents reported a rise in output, 40% saw more orders from domestic and overseas clients, and 60% registered an increase in sale prices, according to the survey.— China Daily/ann