Zhu Min, chair of the National Institute of Financial Research at Tsinghua University, said at the 2019 Boao Forum for Asia Annual Conference that the main reason for small and micro-enterprises to finance is attributed to asymmetry in information, risks, costs and returns between the enterprises and banks.

He explained the information asymmetry refers to that banks do not have a full understanding about small and micro-enterprises; risk asymmetry means these enterprises lack enough collateral to ensure bank loans' safety; asymmetry in cost and returns is that loans for small and micro-enterprises generate low returns versus high costs.

Meanwhile, he pointed out that loose monetary policy is not necessarily helpful for small and micro-enterprises to get loans, as what happened in the past 10 years showed loose monetary policy usually cheered up stock and bond markets.