BEIJING — Official data showed that China saw robust growth in the outstanding sum of loans to small and micro companies by the end of 2024 amid government efforts to encourage inclusive financing.
By the end of the fourth quarter (Q4) of last year, the balance of loans issued by banking financial institutions to small and micro firms totaled 81.4 trillion yuan ($11.4 trillion), according to the National Financial Regulatory Administration.
The outstanding loan to small and micro companies with a credit limit of 10 million yuan or less reached 33.3 trillion yuan, surging 14.7 percent year-on-year, data from the administration showed.
The quality of commercial banks” credit assets has remained generally stable. By the end of Q4, the non-performing loan ratio for commercial lenders stood at 1.5 percent, edging down 0.05 percentage points from the previous quarter.
China has been stepping up financial support for the country’s small businesses, with reserve requirement ratio cuts and policy interest rate reductions to lower borrowing costs and boost the vitality of the small market players.
In 2024, the number of registered enterprises in China reached 61.226 million, most of which were middle, small and micro-sized businesses.
