The China Banking and Insurance Regulatory Commission published an update on the support micro and small enterprise financing coordination mechanism, established in October 2024 with State Council approval alongside the National Development and Reform Commission and other departments to help bank credit reach micro and small businesses more directly, quickly and at appropriate interest rates. The mechanism is run at the national level with participating departments and banks, and at the local level through provincial, municipal and county arrangements. County-level task forces have carried out “thousand enterprises and ten thousand households” visits to identify financing needs and refer eligible micro and small business entities to banks based on five criteria covering compliant ongoing operations, fixed premises, genuine financing needs, good credit standing and lawful loan use, with banks matching finance on market-based and law-based principles. The update also highlights targeted support for priority areas including foreign trade, private enterprise, technology and consumption. As of end-June 2025, local programmes had visited more than 90 million micro and small business entities; banks provided CNY 23.6 trillion in new credit approvals to entities on recommended lists and extended CNY 17.8 trillion in new loans, with unsecured lending accounting for 32.8%. Next, the China Banking and Insurance Regulatory Commission will continue work with the National Development and Reform Commission to deepen implementation, improve the efficiency of demand identification and the credit channel to the grassroots, and raise service levels to help micro and small business entities address practical difficulties.

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