The General Office of the State Council issued a notice on easing SME
receivables stress. It says large firms that demonstrably shorten payable terms
or cut payable volumes will get stepped-up financing support, including
preferential access to loans and bond issuance. Commercial banks are urged,
under risk-control conditions, to back large firms in replacing payables with
loan or bond financing so they can pay upstream and downstream SMEs in cash
promptly. The notice also directs exploring use of SME specialized, refined,
distinctive and innovative development evaluation results as credit enhancement
to steer financial institutions to increase support for high-quality SMEs.
