Latest News:  
Beijing   Sunny    24 / 12 ℃  City Forecast

English>>China Business

SME confidence slips again in third quarter

By Hu Yuanyuan  (China Daily)

08:08, September 28, 2012

Confidence among small and medium-sized enterprises dropped further in the third quarter, as the country's economic growth continued to slow down, a research from Standard Chartered showed on Thursday.

The SME confidence index stood at 46.71 percent, down 7.44 percentage points on the previous quarter, according to the bank's research.

A reading of above 50 shows SMEs are confident about their prospects.

The slide in the index, said Gu Chanjuan, president of SME wealth management at Standard Chartered, is mainly due to the continuous dip in China's economic growth, especially the deteriorating foreign trade situation.

"Declining exports and imports may pose the biggest challenge for China's economy in the coming months," said Wei Jianguo, former vice-minister of commerce. He said the country might find it hard to hit its trade growth target of 10 percent for the year.

"September and October may be the worst time for China's exports as it is the key season for exporters to grab Christmas orders," said Wei, adding that SMEs may have a really difficult time.

According to the report, SMEs recorded lower operational and investment confidence, down for the second quarter in a row. Their confidence in financing, however, climbed slightly on the previous quarter.

"Now is the best time for the central government to launch policies, such as tax cuts, to support export-oriented SMEs," Wei said.

Several foreign investment banks recently lowered their forecasts for China's economic growth this year.

Barclays, for instance, cut its forecast for China's GDP growth to 7.5 percent this year from its original estimate of 7.9 percent, due to weak August data, the investment bank said in a research note, which confirmed that China's growth momentum remains weak.

【1】 【2】

News we recommend:
Toll fee exemption boosts auto rentals GDP may slow for 9th quarter China-ASEAN Expo increases trade volume
Chinese firms ramp up presence in Thailand Chinese go online to buy latest iPhone Chinese winemakers demand anti-dumping
Logistics co-op needed in China, ASEAN  Global yuan use increases Steel producers face bleak months ahead


Leave your comment0 comments

  1. Name


Selections for you

  1. Amazing military photos: China's J-10 fighters

  2. North Korea's 'iPad' revealed

  3. New Deal to Boost Consumption

  4. Starbucks in Lingyin Temple triggers criticism

  5. Zhang Ziyi covers OK Jingcai magazine

  6. Spectacular scenery of dusk around world

Most Popular


  1. Be vigilant against resurgence of militarism in Japan
  2. Easy times gone for foreign firms in China
  3. Noda gov't in hot water as LDP eyes comeback
  4. White paper makes watertight case for Diaoyu claim
  5. Intl firms should learn from Chinese counterparts
  6. Aircraft carrier brings timely morale boost
  7. Palestine faces difficulties amid Arab upheaval
  8. Theft of Diaoyu Islands risks China-Japan trade ties
  9. Japan defies post-war int'l order, China's goodwill
  10. Tokyo's stance on Diaoyu Islands 'unacceptable'

What's happening in China

Unknown object found in Uni-President milk tea

  1. Officials post their financial information online
  2. Views divided on bid to revise pension system
  3. New high-speed railway spurs debate over prices
  4. Chinese gov't units test-drive green autos
  5. Five detained after fatal Gansu mine accident

China Features

  1. Culture invasion? Starbucks kisses Buddha
  2. Public should enjoy more 'tourism benefits'
  3. Ancient villages face losing their souls
  4. Economic circles key to Sino-Japan relations
  5. How to pan for gold in cultural investment fever

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture