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Wenzhou to Create CNY200Mln Emergency Fund for Companies

10-13 11:37 Caijing

Government of in the bellwether Chinese city of Wenzhou is planning to create an emerging re-lending fund worth of 200 million yuan for its capital strained companies

Government of in the bellwether Chinese city of Wenzhou is planning to create an emerging re-lending fund worth of 200 million yuan for its capital strained companies, the 21st Economic Herald reported.

The fund would be used to support those companies with a solid foundation and stable businesses, which are suffering from a disruption of capital chain after performming guarantee obligations for others; and those industry leaders that could easily trigger chain reactions if defaulted, according to the report.

Each qualified company can file an application for as much as 20 million yuan of the emergency funds.

Troubles among small manufacturers in Wenzhou, which is seen as a parameter of the health of the nation’s private enterprise, are casting cloud over the Chinese economy and bring a focus concern for Chinese leaders.

Premier Wen Jiabao on Wednesday called for financial and fiscal measures to support small and tiny-sized enterprises when hosting a regular cabinet meeting.

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