The Chinese Small and Medium-Sized Enterprises (SMEs) Development Index edged up 0.1 point to 89.4 in April from last month, indicating that the SMEs nationwide generally saw an upward development trend in post-pandemic recovery, according to industry data released on Thursday.
The index, based on a survey of 3,000 SMEs in eight major industrial sectors, has maintained expansion for two consecutive months and reached a record high since September 2023, data from the China Association of Small and Medium Enterprises (CASME) showed.
The improvement in the index has been bolstered by the unremitting efforts made by SMEs in improving their operational capacity, said Ma Bin, executive vice-president of the association.
"In the first four months of this year, the Small and Medium-Sized Enterprises Development Index generally showed an upward trend. The SMEs saw a sustained recovery in production, accompanied by a consistent rise in their operational capacity. In April, nearly 70 percent of the SMEs achieved an operating rate of over 75 percent, marking a significant increase compared to previous years. Notably, in April, the Small and Medium-Sized Enterprises Development Index hit a new high since September 2023," Ma explained.
According to the survey by the CASME, in April, thanks to stimulus policies such as trade-in programs for consumer goods, the country's consumption potential was gradually unfolded, and market expectations for small and medium-sized enterprises improved.
"Various regions have introduced implementation plans and operational guidelines for trade-in programs targeting consumer goods, automobiles, and other products. Various subsidies and incentives have encouraged consumers to participate in trade-in purchases, resulting in an increase in trade-in orders and an improvement in the production and sales of small and medium-sized enterprises. Unlike previous instances where the index primarily rose due to industrial growth, the increase of the index in April was mainly driven by the recovery of the service industry. This indicates that the recovery of the service sector is becoming an important factor driving recovery of the Small and Medium-Sized Enterprises Development Index," Mar noted.
China's SMEs report improved performance in April
