An index tracking the development of China's small and medium-sized enterprises (SMEs) rose to 89.8 in February, the highest level in nearly four years, data from an industry association showed Wednesday.
The index, based on a survey of 3,000 SMEs across eight major industries, climbed 0.8 points from January, marking the largest monthly increase in more than two years, according to the data released by the China Association of Small and Medium Enterprises.
The increase was fueled by multiple factors, including rising business confidence and a steady recovery in market demand.
"The sharp rise in the index is mainly due to two factors. First, after Spring Festival, many local governments held their first post-holiday meetings to accelerate economic activity, prompting businesses to resume operations quickly. Second, the effect of the package of incremental policies rolled out in the second half of last year continue to unfold, driving a steady increase in business confidence and market demand," said Ma Bin, executive vice-president of the association.
All sub-indexes and sub-sector indexes picked up in February, reflecting a notable improvement in SMEs growth expectations, steady growth in market demand, increased investment willingness and improved corporate profitability.
"With the combined effects of policy support and market recovery, business activity for SMEs is steadily improving. The data on operations and profitability suggest that SMEs are gaining stronger momentum and internal growth drivers," Ma said.
The survey also showed that 52.5 percent of the SMEs surveyed operated at full capacity in February, up 7.2 percentage points from the previous month. This marks the first time in nearly a year that the figure has surpassed 50 percent, indicating a broader recovery in SME operations.
China's SME development index surges to near 4-year high in Feb
