The State Development Bank (SDB), the largest policy bank in China, is expected to lend greater support to the country's medium- and small-sized enterprises.

The bank's governor, Chen Yuan, made this pledge on November 11 at an ongoing international symposium on the financing of these enterprises, which was jointly sponsored by the SDB and a German bank.

The symposium highlighted the topic of adopting multiple measures in finance, tax, and law and technique to help expand fund-raising channels for medium- and small-sized firms in China.

These businesses have contributed about 75 percent of the newly created jobs in Chinese cities and townships during the past two decades, helping to settle the nearly 300 million idle rural laborers. Of the nation's 150 million-strong industrial workforce, 110 million are working in such firms.

These businesses also contributed about 76.7 percent of the newly created industrial output value during the 1990s, and about 60 percent of the nation's current export turnover.

In spite of the progress this sector has made, medium- and small-sized firms are facing a number of difficulties, predominately a shortages of funds.

China's banking sector should address the financing problem facing the smaller firms, and the SDB will join forces with commercial banks to establish a special financial service system targeting such businesses, according to the SDB governor. (Xinhua)