Year-ender: major financial events of 2020

    chinadaily.com.cn | Updated: 2020-12-29 06:40
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    China sets up SME Development Fund Co Ltd to support firms recovery from pandemic

    China SME Development Fund Co Ltd is launched in Shanghai on June 22, 2020. [Photo/Official website of China SME Development Fund Co Ltd]

    China SME Development Fund Co Ltd was set up in Shanghai on June 22, with over 10 ministries, State-owned business giants and leading companies in various fields holding stakes.

    With total registered capital of 35.75 billion yuan for the company, China's Ministry of Finance for the first time, directly serves as an LP, or limited partner, with a 42.66 percent stake worth 15.25 billion yuan.

    The move is intended to ease funding shortages for small and medium-sized enterprises caused by the COVID-19 pandemic, and reboot the confidence of the market and investors.

    According to experts and industry insiders, the fund will also promote the sustainable growth of SMEs in key sectors in the long term.

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