SME Development Index in China Hits the Top After 3 Years

SME Development Index in China Tops After Years
SME Development Index in China Hits the Top After 3 Years

📩 10/04/2023 16:07

The operational health index of China's small and medium enterprises (SMEs) rose sharply in the first quarter after a package of stimulus policy measures. The SME Development Index, calculated by the survey conducted by the China Small and Medium Enterprises Association (CASME) with the participation of 3 SMEs, increased by 1,3 points in the first quarter to 89,3, recording the highest increase since the fourth quarter of 2020.

While the indicators of the eight sectors participating in the survey rose in the first quarter, the accommodation and catering sector, transportation and computer software recorded the biggest improvement. Meanwhile, eight sub-indices, including business efficiency, market and operations, rose, CASME said.

CASME Secretary General Xie Ji said the improvement in the first quarter was due to the gradual resumption of production and stronger policy support. “56 percent of companies were operating at over 75 percent capacity in the first quarter, which was a one-year high, up 25 percent,” Xie said.

The survey by CASME also shows that since the second half of last year, the country has increased investment in key projects that bring new development opportunities and boost their confidence to SMEs in the industrial chain. “The production and functioning of businesses, economic benefits and market conditions were improved in the first quarter. In particular, the sharp increase in the business confidence index has laid a good basis for future development,” Xie said, noting that it is expected to maintain a positive economic growth rate in the second quarter.