Small and medium-sized enterprises have increased by 51% over the past five years, and the proportion of "Little Giant" A-shares has increased by 27%, reflecting the strong confidence and new momentum of "Combination Fist"! Small and Medium Enterprises | Index | A-share

Since the beginning of this year, various supportive policies have been continuously implemented and taken effect, providing strong support for the development of small and medium-sized enterprises in China. According to the China Association of Small and Medium Enterprises, the development index of small and medium-sized enterprises in June was 89.1, an increase of 0.2 points from the previous month, ending the three consecutive months of decline. In the sub indexes, the macroeconomic sentiment index, market index, cost index, and input index have stopped falling and rebounded, the comprehensive operating index has turned from flat to upward, and the labor index has risen for two consecutive months. The sub industry indices of industry and construction have also achieved a significant rebound.

The Small and Medium sized Enterprise Development Index is a comprehensive index that reflects the economic operation status of small and medium-sized enterprises. In the current complex and uncertain domestic and international environment, the recovery of the comprehensive index and sub index reflects the strong innovation vitality and development resilience of small and medium-sized enterprises.

As an important force in promoting innovation, employment, and improving people's livelihoods, small and medium-sized enterprises play a leading role in promoting economic and social development and industrial transformation and upgrading. The Ministry of Industry and Information Technology pointed out that currently, China's small and medium-sized enterprises are showing a development trend of "both quantity and quality". As of the end of 2022, the number of small and medium-sized enterprises in China has exceeded 52 million, an increase of 51% compared to the end of 2018. China has cultivated nearly 9000 specialized, refined, and innovative "little giant" enterprises, driving local governments to cultivate more than 80000 provincial-level specialized, refined, and innovative small and medium-sized enterprises. As of the end of May 2023, more than 1420 specialized, refined, and innovative small and medium-sized enterprises have been listed on the A-share market, accounting for 27% of the total number of A-share listed enterprises.

At the same time, it should be noted that the overall recovery of China's economy continues to be positive, but the foundation for recovery is not yet stable. The increasingly complex and severe international environment, coupled with weak global economic growth, directly affect the process of China's economic recovery. Small and medium-sized enterprises are still facing high cost and low profit operating pressures during the post epidemic recovery period, as well as the difficulties of digital transformation due to a lack of funds, talent, and technology.

Solving urgent needs and delivering what enterprises hope for. A series of policy measures have been launched by various regions and departments to help small and medium-sized enterprises overcome difficulties. According to the Ministry of Industry and Information Technology, last year alone, more than 40 policies were introduced at the national level to support the development of small and medium-sized enterprises, leading to the issuance of more than 270 supporting policy documents by local governments. Nowadays, support for small and medium-sized enterprises is continuously increasing and advancing from the national to local levels.

At the beginning of the year, the Office of the Leading Group for Promoting the Development of Small and Medium sized Enterprises of the State Council issued the "Several Measures to Assist Small and Medium sized Enterprises in Stabilizing Growth, Adjusting Structure, and Strengthening Capacity", comprehensively stimulating the vitality and confidence of market entities. In April this year, the China Banking and Insurance Regulatory Commission issued a notice on enhancing the quality of financial services for small and micro enterprises in 2023, clarifying that the overall trend of incremental expansion will continue in 2023. In May of this year, the Ministry of Industry and Information Technology, together with relevant departments, launched the special action of empowering small and medium-sized enterprises with scientific and technological achievements and the special action of assigning quality standards and brands to small and medium-sized enterprises, as well as the "three empowerment" special action of digital empowerment of small and medium-sized enterprises that has already been carried out, forming a "combination fist" to enhance the innovation ability and core competitiveness of small and medium-sized enterprises. At the end of June, the central bank announced that the People's Bank of China had decided to increase its loan and rediscount quota for agriculture and small businesses by 200 billion yuan, further increasing financial support for agriculture, rural areas, small and micro enterprises, and private enterprises, playing a precise drip irrigation role, reducing social financing costs, promoting employment expansion, and supporting the recovery of endogenous economic power.

Since the beginning of this year, various regions have also issued documents to "cheer and assist" the development of small and medium-sized enterprises. For example, in February, 8 departments including the Shenzhen Municipal Bureau of Industry and Information Technology jointly issued the "Several Measures to Further Support the Relief and High quality Development of Small and Medium sized Enterprises"; In March, Henan Province summarized and summarized 53 fiscal policies supporting the development of small and medium-sized enterprises in 10 categories; In April, Jiangxi Province introduced 16 measures to assist small and medium-sized enterprises in stabilizing growth, adjusting structure, and strengthening capabilities; In May, Jiangsu Province announced that it will focus on strengthening cooperation between government, banks, and enterprises this year, and deepen the implementation of the provincial key industrial chain high-quality small and medium-sized enterprise listing cultivation plan; Shandong Province recently proposed to cultivate more than 1000 specialized, refined, and innovative small and medium-sized enterprises throughout the year, and around 200 provincial-level or above manufacturing champion enterprises.

Policy support strengthens confidence, "real gold and silver" inject momentum, and real moves add vitality to actual results. The latest data from the Ministry of Industry and Information Technology shows that currently, the electricity consumption and procurement indicators of small and medium-sized enterprises continue to improve, and the development vitality of specialized, refined, and new enterprises continues. The production and operation of small and medium-sized enterprises maintain a recovery growth trend. I believe that with the continuous promotion and effectiveness of various policies benefiting enterprises, as well as the vigorous efforts of small and medium-sized enterprises to overcome difficulties, the sustained positive trend of China's economy will become more clear.

The report of the 20th National Congress of the Communist Party of China proposes to "adhere to the two unwavering principles", "support the development of small and medium-sized enterprises", and "support the development of specialized, refined, special, and new enterprises". Promoting the development of small and medium-sized enterprises is a long-term development strategy of the Party and the state. In the future, in order to cope with the complex and ever-changing external environment, it is still necessary for all parties to conduct in-depth investigation and research, understand the difficulties and pain points faced by the development of small and medium-sized enterprises through multiple channels, improve the accuracy and coverage of support policies, provide practical and effective policy measures, and provide source power and strong support for the development of small and medium-sized enterprises. At the same time, it is also necessary for small and medium-sized enterprises to adhere to the path of specialized, refined, unique, and new development, vigorously promote the entrepreneurial spirit, focus on industry, practice hard, and continuously improve their core competitiveness and risk resistance. Empowering high-quality development of small and medium-sized enterprises through internal and external synergy.