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Banks urged to support SMEs in IT industry

By Ding Qingfen and Yang Zhen (chinadaily.com.cn)
Updated: 2009-03-06 17:52

China will encourage financial institutions to provide more support to small- and medium-sized enterprises (SMEs) in the IT industry, Liu Mingkang, head of China's banking regulator, said on the sidelines of the ongoing National People's Congress on Friday.

Related readings:  Financing tools for large enterprises help banks shift loans to SMEs  Loans to SMEs account for 51.9% in 2008  SMEs development to be encouraged

Chinese banks will accept intellectual property as collateral and invite scientists and experts in the same field to help evaluate loan applications from SMEs in the IT industry, Liu said.

He also urged Chinese lenders to work closely with venture capital and private equity firms to provide sufficient financial support to SMEs in the IT industry.