OCDE - Financing SMEs and Entrepreneurs 2026 - China de 2026

2  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Key facts on SME financing In China, SMEs play a key role in maintaining economic dynamism and boosting i nnovation and entrepreneurship. SMEs contribute approximately 50% of tax revenue, 60% of GDP, 70% of technological innovation, and 80% of urban employment. In 2024, there were about 60 million SMEs in Chin a, and the number of newly registered enterprises reached an average of 24 000 per day. Outstanding business loans for Micro and Small Enterprises (MSEs) increased to CNY 81.4 trillion in 2024, up 14.8% from 2023. The share of outstanding business loans for MSEs has been relatively stable for the past two years, at 51% in 2023 and 53.66% in 2024, respectively. Over 2022-23, the ra tio of short-term loans to total loans for SMEs declined from 43.1% to 42.68%. This ratio dropped to 42.49%, down 0.19 percentage points in 2024. In 2024, interest rates for SMEs and large firms were 4.18% and 3.78%, down 0.28 and 0.43 percentage points, respectively, compared to 2023. The interest rate spread between SMEs and large ent erprises continued to increase, rising from 0.25% to 0.40% in 20 23–24. This represents the fifth consecutive year of spread expansion since 2020. In recent years, China has improved and implemented the policy of cutting taxes and fees on debt finance. In 2024, SMEs were on average charged 1.27% of the total value of bank loans in the form of extra loan fees, which have decreased slightly by 0.28 percentage points with respect to the previous year. In 2024, the 1-year interest rate in the shadow banking sector ranged from 9.11% -

loans in the form of extra loan fees, which have decreased slightly by 0.28 percentage points with respect to the previous year. In 2024, the 1-year interest rate in the shadow banking sector ranged from 9.11% - 13.02%, with a spread of about 4.93% - 8.84% compared to formal bank loans. In 2024, the rejection rate of SME loan applications was stable at around 4.71%, and the utilisation rate of SME bank loans has remained at a high rate of 85.95%. On average, 57.13% of SMEs have applied for a bank loan. In 2024, newly listed SMEs obtained CNY 13.15 billion from the STAR Market, CNY 22.58 billion from the Shenzhen Venture Board, and CNY 5.02 billion from the Beijing Stock Exchange, down by 90.94%, 81.54%, and 67.47% respectively compared to the previous year. Venture capital, leas ing and factoring, online lending and crowdfunding continue to remain important sources of SME financing. In 2024, the ratio of non-performing loans to total MSE loans was 1.64%, down 0.37 per centage points from 2023.The bankruptcy rate for SMEs was 3.72% in 2024 according to survey data, up 4.79% from the previous year. In September 2024, the national small and medium-sized enterprise development fund reached CNY 35.7 billion, and a total of 42 sub-funds were set up, covering more than 1,200 growth-oriented enterpr ises in the seed and start-up stages. In 2024, the annual re-guarantee business scale of the N ational Financing Guarantee Fund reached CNY 1.41 trillion, an increase of 7.6 % yearon-year. The central government has issued a special fund of CNY 3.059 billion for the development of small and medium-sized enterprises, focusing on supporting ' little giant ' enterprises 1 to invest in scientific and technological innovation and industrial chain collaboration.

has issued a special fund of CNY 3.059 billion for the development of small and medium-sized enterprises, focusing on supporting ' little giant ' enterprises 1 to invest in scientific and technological innovation and industrial chain collaboration. People’s Republic of China 3

FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

In 2024, the Chinese government has continued to alleviate financing difficulti es and reduce costs for SMEs, including tax and fee reduction, subsidies, financing guarantees, expansio n of financing channels, improving financial services, and enhancing the connection between industry and finance. At the same time, China will broaden multiple financing channels and consolidate the r ole of small and medium-sized enterprises as a pillar of economic stability.4  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026 Table 1 . Scoreboard for the People’s Republic of China Indicator Unit 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt Outstanding business loans, total RMB billion 24940 30292 35017 39283 44019 52162 53895 62578 71545 78728 86123 97307 107482 121547 139024 151703 Outstanding business loans, Small and Micro Enterprises RMB billion 30744 33492 36900 42700 50000 59700 70900 81400 Share of outstanding loans, Small and Micro Enterprises % of total outstanding business loans 42.97 42.54 42.85 43.88 46.52 49.12 51.00 53.66

Share of outstanding loans, Small and Micro Enterprises % of total outstanding business loans 42.97 42.54 42.85 43.88 46.52 49.12 51.00 53.66 Share of short-term loans, total % of total business lending 42.12 43.12 42.4 40.35 38.06 35.77 34.35 32.86 30.61 29.6 28.66 27.98 Share of short-term SME lending % of total SME lending 56.1 49.24 47.56 54.69 40.97 41.62 39.09 40.76 42.22 43.1 42.68 42.49 Direct government loans, SMEs RMB billion 1222.6 1550 1813.4 2082.4 2470 2820 Non-performing loans, total % of all business loans 2.58 1.76 1.26 1.21 1.25 1.49 2.04 2.07 2.05 2.29 2.24 1.95 1.87 1.64 1.54 Non-performing loans, SMEs % of all SME loans 3.83 2.52 1.75 1.65 1.66 1.97 2.59 2.6 2.58 Non-performing loans, Small and Micro Enterprises % 2.01 2.2 2.74 2.68 2.74 3.16 3.09 2.81 2.71 2.15 2.01

Interest rate, SMEs % 8.39 7.51 5.23 4.77 5.78 5.17 4.86 4.84 4.52 4.45 4.46 4.18 Interest rate, large firms % 7.72 7.47 5.26 4.89 5.4 5.07 5.11 5.06 4.53 4.29 4.21 3.78 Interest rate spread Percentage points 0.67 0.04 -0.03 -0.12 0.38 0.1 -0.25 -0.22 -0.01 0.16 0.25 0.4 Collateral, SMEs % of SMEs needing collateral to obtain bank lending 50.55 51.64 51.59 52.98 54.52 54.76 55.67 52.05 50.28 50.18 Collateral, Small and Micro Enterprises % of Small and Micro Enterprises needing collateral to obtain bank lending 55.8 56.96 58 54.2 52.4 52.5 53.2 50.9 48.9 45.3 41.9 Percentage of SME loan applications SME loan applications / total number of SMEs 69.88 63.06 53.09 58.36 54.79 57.94 56.67 58.38 58.59 57.13 Rejection rate 1 – (SME loans authorised / requested) 6.19 11.97 11.72 6.13 4.07 3.69 4.05 3.79 3.59 3.61 4.48 4.71

Utilisation rate SME loans used / authorised 13616 17139 21167 25355 93.51 94.75 94.48 94.03 89.91 86.26 84.32 84.55 87.66 87.69 84.34 85.95 Non-bank finance Venture and growth capital (stock) RMB billion 160.51 240.66 319.8 331.29 263.9 293.33 336.12 376.52 411.02 476.9 563.6 627.2 728.3 802.8 881.9 Venture and growth capital (stock), (growth rate) %, Year-on-year growth rate 10.26 49.93 32.88 3.59 -20.34 11.15 14.59 12.02 9.16 16.03 18.18 11.28 16.12 10.23 9.85 5

FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Venture and growth capital (incremental) RMB billion 25.11 27.90 37.44 46.56 50.55 84.53 52.72 86.68 63.6 101.1 74.5 79.2 Venture and growth capital (incremental), (growth rate) %, Year-on-year growth rate 11.11 34.19 24.36 8.57 67.22 -37.63 64.42 -26.63 58.96 -26.31 6.31 Leasing and hire purchases RMB billion 370 700 930 1550 2100 3200 4440 5330 6060 6650 6654 6504 6323 5850 5640 5640

Leasing and hire purchases RMB billion 370 700 930 1550 2100 3200 4440 5330 6060 6650 6654 6504 6323 5850 5640 5640 Factoring and invoicing EUR billion 67300 154550 274870 343759 378128 406102 352879 301635 405537 411573 403504 433162 469575 576885 634574 679000 Other indicators Payment delays, B2B Number of days 95.91 72.31 64.44 65.21 44 38 Bankruptcies, SMEs % 7.57 7.24 5.46 4.73 3.7 2.85 3.09 4.06 3.27 3.48 3.55 3.72 Bankruptcies, SMEs (growth rate) %, Year-on-year growth rate -4.36 24.59 13.37 21.78 -22.97 8.42 31.39 -19.46 6.42 2.01 4.79

Source: See Table 2.6  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Macroeconomic and financing conditions In 2024, the world economy experienced steady growth with indications of a recov ering global trade, though it was not impervious to uncertainties such as geopolitical shocks and trade protectionism. China's economy, while in a critical phase of recovery, maintained its fundamental trend of stable long-term growth. The banking industry, accurately understanding the underlying laws and new characteristics of money and credit demand and supply, placed greater emphasis on enhancing quality and efficiency. It provided more targeted and robust financial support for the real economy, adhering to the overarching principle of moderate aggregate demand, a steady pace, and the effective utilisation of idle funds. SMEs in the national economy SMEs play a key role in maintaining economic dynamism and boosting i nnovation and entrepreneurship.

targeted and robust financial support for the real economy, adhering to the overarching principle of moderate aggregate demand, a steady pace, and the effective utilisation of idle funds. SMEs in the national economy SMEs play a key role in maintaining economic dynamism and boosting i nnovation and entrepreneurship. SMEs in China contribute approximately 50% of tax revenue, 60% of GDP, 70% of technological innovation, and 80% of urban employment. In 2024, there were about 60 million SMEs; the number of newly registered enterprises reached an average of 24 000 per day, and the annual operating income of SMEs above the designated size 21exceeded CNY 81 trillion. SME lending In recent years, China has gradually expanded the coverage of loans for Micro and Smal l Enterprises (MSEs). The outstanding business loans for Micro and Small Enterprises (MS Es) increased to CNY 81.4 trillion in 2024, up 14.8% from 2023. The share of outstanding business loans for MSEs has steadily increased, reaching 51% in 2023 and 53.66% in 2024, respectively. In 2024, the proportion of small and medium-sized enterprises (SMEs) applying for bank loans accounted for 57.13%, a decrease of 1.46 percentage points from the previous year. Short-term loans have remained the preferred financing method for SMEs. In the 2022-23 period, the proportion of short-term loans to total loans for SMEs decreased from 43.1% to 42.68%. This proportion further decreased to 42.49% in 2024, a drop of 0.19 percentage points. In 2024, China implemented several measures to foster the growth of inclusive finance, foc using on expanding its scale, enhancing coverage, and reducing costs. The People's Bank of China broadened the scope of support for the inclusive micro and small enterprise loan programme, raising the maximum singleentity credit line from CNY 10 million to CNY 20 million. Additionally, it increased quotas for relending and

expanding its scale, enhancing coverage, and reducing costs. The People's Bank of China broadened the scope of support for the inclusive micro and small enterprise loan programme, raising the maximum singleentity credit line from CNY 10 million to CNY 20 million. Additionally, it increased quotas for relending and rediscounting aimed at SMEs. The National Financial Regulatory Administr ation and the National Development and Reform Commission spearheaded the creation of a co-ordinated working mechanism to back the financing of micro and small enterprises. Local mechanisms were establ ished to tackle the financing challenges faced by small businesses and lending obstacles for banks by synchronising efforts from both supply and demand perspectives. Credit conditions In 2024, the People's Bank of China reduced the required reserve ratio twice, cumulatively by 1 percentage point, and cut central bank policy interest rates twice, cumulatively by 0. 3 percentage points. The bank 7 FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026 persisted in deepening the reform of marketisation for loan interest rates. On Oc tober 20, 2024, the oneyear LPR fell to 3.1%, and the over-five-year LPR decreased to 3.6%. In 2024, the interest rates for SMEs and large firms were 4.18% and 3.78%, respective ly, marking decreases of 0.28 and 0.43 percentage points from 2023. The interest rates for SMEs were higher than those for large firms; the interest rate spread between SMEs and large enterprises was positive, increasing from 0.25% in 2023 to 0.4% in 2024. Consequently, in recent years, the interest rates for large firms have decreased at a faster rate than those for SMEs. In 2024, SMEs were on average charged 1.27% of the total value of bank loans in the for m of extra loan

decreased at a faster rate than those for SMEs. In 2024, SMEs were on average charged 1.27% of the total value of bank loans in the for m of extra loan fees, which have decreased slightly by 0.28 percentage points with respect to the previous year. In 2024, the primary policies supporting technological innovation and manufacturing devel opment resulted in tax cuts, fee reductions, and rebates amounting to CNY 2.6 trillion, with small and medium-sized enterprises (SMEs) and individual businesses being the primary beneficiaries. Collateral requirements pose a significant constraint for small and medium-sized enterprises (SMEs) seeking bank loans. Between 2022 and 2023, the proportion of bank loans to SMEs secured by c ollateral has consistently decreased from 45.3% to 41.9%, a reduction of 3.4 percentage p oints. Surveys from the demand side indicate that this ratio remains elevated for SMEs in compariso n to larger corporations. Nevertheless, the ongoing reduction in this percentage suggests that the challen ges SMEs face concerning collateral requirements may be evolving. In 2024, structural monetary policy persisted in concentrating on the transform ation of the economic structure and support for weak links to balance the objectives of steady growth and risk prevention. Overall, the credit conditions of small and medium-sized enterprises (SMEs) hav e improved. Additionally, the rejection rate for SME loan applications remained stable at approximately 4.71%, an d the utilisation rate of SME bank loans has stayed high at 85.95%. Alternative sources of SME financing Equity financing In 2023, China fully implemented the stock issuance registration-based reform. In 2024, China's multi-tier capital market system continued to improve, with the traditional mainboards of Shang hai and Shenzhen primarily serving mature large enterprises; the Science and Technology Innovation B oard (STAR Market) highlighting technological characteristics; the Venture Board mainly servi ng growth-oriented innovation and entrepreneurship enterprises; and the Beijing Stock Exchange and National Equities Exchange an d Quotations (NEEQ) serving SMEs.

primarily serving mature large enterprises; the Science and Technology Innovation B oard (STAR Market) highlighting technological characteristics; the Venture Board mainly servi ng growth-oriented innovation and entrepreneurship enterprises; and the Beijing Stock Exchange and National Equities Exchange an d Quotations (NEEQ) serving SMEs. In 2024, newly listed SMEs obtained CNY 13.15 billion from the STAR Market, CNY 22.58 billion from the Shenzhen Venture Board, and CNY 5.02 billion from the Beijing Stock Exchange, down by 90.94%, 81.54%, and 67.47% respectively compared to the previous year. In total, 15 small companies were listed on the STAR Market, 38 on the Venture Board, and 24 small companies were listed on the B eijing Stock Exchange in 2024, down 75.81%, 65.45%, and 69.23% respectively compared to the previous year. In 2024, the total number of listed companies on the NEEQ was 6 101, down 2.24%, com pared to 2023, and the total transaction amount decreased by 26.43% compared with 2023, reachi ng CNY 45.1 billion. The total amount of stocks raised by listed companies throughout the year was CNY 11.9 billion compared to CNY 18.0 billion in 2023.8  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026 Table 2. Basic Statistics on the Development of NEEQ, 20182024 2018 2019 2020 2021 2022 2023 2024 The number of listed companies 10691 8953 8187 6932 6580 6241 6101 Total market value (CNY, billion) 3448.7 2939.9 2654.2 2284.5 2118.1 2197.1 2141.9

The number of listed companies 10691 8953 8187 6932 6580 6241 6101 Total market value (CNY, billion) 3448.7 2939.9 2654.2 2284.5 2118.1 2197.1 2141.9 Financing value (CNY, billion) 60.4 26.5 33.9 25.9 23.2 18.0 11.9 Exchange value (CNY, billion) 88.8 82.6 129.5 214.8 79.8 61.3 45.1 Turnover ratio (%) 5.31 6.00 9.90 17.66 7.41 6.48 5.28 P/E ratio 20.86 19.74 21.10 20.48 17.20 17.63 15.85

Source: official website of National Equities Exchange and Quotations (NEEQ), http://www.neeq.com.cn.

In recent years, venture capital has remained an important source of financing for SMEs and entrepreneurship. However, the dynamism of China's venture capital market has experienced volatility. By 2023, the number of venture capital institutions in China had reached 4 117, marking an increase of 47 or 1.2% from 2022. The total venture capital investment stock amounted to CNY 881.93 billion in 2023, which was a 9.86% increase compared to 2022. Within this, CNY 79. 16 billion was incremental VC investment , showing a slight year-over-year increase but a 21.7% decrease from 2021. Table 3. Venture and Growth capital in China, 20172023 2017 2018 2019 2020 2021 2022 2023 The number of VC organisations 2296 2800 2994 3290 3568 4070 4117

Table 3. Venture and Growth capital in China, 20172023 2017 2018 2019 2020 2021 2022 2023 The number of VC organisations 2296 2800 2994 3290 3568 4070 4117 Total VC managed capital (CNY, billion) 887.25 917.9 998.91 1115.75 1303.53 1452.55 1519.63 The stock of VC investments (CNY, billion) 431.02 476.9 563.58 627.18 728.3 802.77 881.93 In which, incremental VC investments in this year (CNY, billion) 84.53 52.72 86.68 63.6 101.12 74.47 79.16 Leasing and factoring As of the end of June 2024, China's financial leasing contracts had a balance of approximately CNY 56.06 trillion. Commercial factoring has played a significant role in addressing the financing difficulties of SMEs. In 2024, China issued industry group standards for commercial factoring. The total factoring volume was about EUR 679.0 billion, up 7.00% compared to 2023. Shadow banking In 2024, the scale of shadow banking in China remained generally stable, with standa rdised and orderly credit intermediation and maturity transformation functions, stable and controllable leverage conditions, effectively supporting the real econom y. According to Moody's, the broad shadow banking assets rose to CNY 53.3 trillion in 2024 from CNY 49.0 trillion in 2023. The Wenzhou Private Financing Index, which has been published since 2 012, serves as a barometer for the regional and national private financing market. In 2023, the Wenzhou Private Financing Index improved the quality of its data reporting and officially launched Version 2.0. In 202 4, the interest rate for 1-year

the regional and national private financing market. In 2023, the Wenzhou Private Financing Index improved the quality of its data reporting and officially launched Version 2.0. In 202 4, the interest rate for 1-year private loans ranged between 9.11% and 13.02%, compared to the 12.04%- 17.27% range in 202 3. The private lending rate, on average, exceeds the formal bank lending rate by 6.4%. 9

FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Table 4. Wenzhou index of private lending interest rate in the Chinese shadow banking system, 2024 (% of total) Wenzhou Private Finance Index LPR (October 20, 2024) Interest rate by survey January 13.02 The one-year LPR is 3.1% and the over-five-year LPR is 3.6% The average interest rate for SMEs is 4.18% February 12.47 March 12.03 April 11.78 May 12.79 June 11.40 July 11.66 August 10.94 September 10.17 October 12.15 November 9.23 December 9.11

Source: Monitoring website of Wenzhou Private Finance Index, https://www.wzpfi.gov.cn/Download.aspx Other indicators In 2024, the ratio of non-performing loans to total micro and small enterprise (MSE) loans was 1.64%, a decrease of 0.37 percentage points from 2023. The ratio of non-performing loans to total business loans was 1.54% in 2023, 0.1 percentage point lower than the ratio of non-performing loans to total MSE loans.

Finally, according to survey data, the bankruptcy rate for small and medium-sized enterprises (SMEs) was

was 1.54% in 2023, 0.1 percentage point lower than the ratio of non-performing loans to total MSE loans. Finally, according to survey data, the bankruptcy rate for small and medium-sized enterprises (SMEs) was 3.72% in 2024, an increase of 0.17% from the previous year. Government policy response In 2024, the Chinese government continued to intensify its efforts to alleviate the financing di fficulties and high financing costs faced by small and medium-sized enterprises. Specific measures implemented include tax and fee reductions, the provision of subsidies, the strengthening of government financin g guarantees, the expansion of financing channels, the optimisation of financial services, and the promotion of digital integration between industry and finance. China has also executed a special plan to addres s the overdue debts of small and medium-sized enterprises, with a focus on the development of technology-based small and medium-sized enterprises. The primary policy responses and adjustments are listed bel ow: : • On January 24, the People's Bank of China expanded the scope of support for inclusive small and micro loan support tools, increasing the maximum household credit from CN Y 10 million to CNY 20 million. The bank also continued the implementation of inclusive pension special re-loans and appropriately raised the amount of re-loans and rediscounts available to sup port small and micro loans. • On February 5, the People's Bank of China reduced the deposit reserve ratio of financial institutions by 0.5 percentage points and injected approximately CNY 1 trillion of long-term funds to consolidate and enhance economic recovery. • On April 7, the People's Bank of China established a scientific and technologica l innovation and technological transformation re-loan facility with a quota of CNY 500 billi on and an interest rate of 1.75%. The initiative aims to encourage and guide financial institutions to enh ance their financial10  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026 support for technology-based small and medium-sized enterprises, as well as for key areas of technological transformation and equipment renewal projects.

FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026 support for technology-based small and medium-sized enterprises, as well as for key areas of technological transformation and equipment renewal projects. • On September 27, the People's Bank of China once again reduced the deposit reserve ratio by 0.5 percentage points and estimated that it would inject approximately 1 trillion yuan of liquidity funds. This measure may be followed by further reductions of 0.25 to 0.5 percentage points dur ing the year to maintain a reasonable level of liquidity. • On October 25, the People's Bank of China Credit Information Centre launched a new platf orm— the National Small and Medium-Sized Enterprise Capital Flow Credit Information Shar ing Platform—to further support the financing of small and medium-sized enterprises. This allows enterprises to opt to provide banks with more credit information, thereby enhancing financi al institutions' willingness to issue loans. In recent years, China has bolstered its policy support for small and medium-sized enterprises (SM Es). In 2020, the country established the National SME Development Fund Co., Ltd., the first national fund dedicated to the advancement of SMEs. By 2024, the fund had amassed over CNY 37 5 billion and had invested in more than 1,200 growth-oriented SMEs in their seed and start-up phases. Al so in 2024, the National Financing Guarantee Fund provided CNY 1.41 trillion in re-guarantee serv ices, marking a 7.6% increase from the previous year. This resulted in a total of 1.05 million SMEs benefiting from these services. Additionally, in 2024, the special funds allocated for the development of smal l and medium-sized enterprises surpassed CNY 3 billion. 11

FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Figure 1 . Trends in SME and entrepreneurship finance in the People’s Republic of China Note: MSEs in these graphs refer to Microand Small-Enterprises. 0 20000 40000 60000 80000

Figure 1 . Trends in SME and entrepreneurship finance in the People’s Republic of China Note: MSEs in these graphs refer to Microand Small-Enterprises. 0 20000 40000 60000 80000 100000 120000 140000 160000 2017 2018 2019 2020 2021 2022 2023 2024

A. SME and total business loans Annual, in CNY billion Outstanding business loans, MSEs Outstanding business loans, total

0 500 1000 1500 2000 2500 3000 2010 2011 2012 2013 2014 2015

B. Government direct loans, SMEs Annual, in CNY billion Government direct loans, SMEs

0 0.5 1 1.5 2 2.5 3 3.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

C. Non-performing loans, Annual, as a percentage Non-performing loans, total Non-performing loans, MSEs

-1 0 1 2 3 4 5 6 7 8 9 10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

D. SME interest rates and interest rate spread Annual, as a percentage Interest rate SMEs Interest rate spread

0 1000 2000 3000 4000 5000 6000 7000

F. Leasing and hire purchase Annual, in CNY billion Leasing and hire purchase

0 100 200 300 400 500 600 700 800 900 1000

E. Venture and growth capital invested Annual, in CNY billion Increamental Venture and growth capital Accumulated Venture and growth capital12  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

700 800 900 1000

E. Venture and growth capital invested Annual, in CNY billion Increamental Venture and growth capital Accumulated Venture and growth capital12  FINANCING SMES AND ENTREPRENEURS 2026: PEOPLE’S REPUBLIC OF CHINA © OECD 2026

Table 5 . Sources and definitions of the People’s Republic of China’s Scoreboard Indicator Definition Source Debt Outstanding business loans, total Outstanding (stocks) of business loans granted to domestic firms by banks (including foreign banks) and financing agencies under the supervision of the People’s Bank of China in the end of the year, in CNY People’s Bank of China Share of SME outstanding loans Calculated as percentage of SME outstanding loans in total outstanding business loans People’s Bank of China Outstanding business loans, Small and Micro Enterprises Outstanding (stocks) of business loans granted to domestic Small and Micro Enterprises by banks (including foreign banks) and financing agencies under the supervision of the People’s Bank of China in the end of the year, in CNY People’s Bank of China Share of outstanding loans, Small and Micro Enterprises Calculated as percentage of Small and Micro Enterprises outstanding loans in total outstanding business loans People’s Bank of China Share of short-term SME lending The average ratio of short-term loans to the total amount of bank loans among surveyed SMEs, SME (%) Annual Survey on SME Financing Conditions, CSME Non-performing loans, total Outstanding (stocks) of all non-performing loans as defined by The People’s Bank of China People’s Bank of China Non-performing loans, SMEs Outstanding (stocks) of SME non-performing loans to as defined by The People’s Bank of China People’s Bank of China Interest rate, SMEs Average 1-year interest rate for bank loans of SMEs Annual Survey on SME Financing Conditions, CSME Interest rate, large firms Average 1-year interest rate for bank loans of larger companies Annual Survey on SME Financing Conditions, CSME

People’s Bank of China Interest rate, SMEs Average 1-year interest rate for bank loans of SMEs Annual Survey on SME Financing Conditions, CSME Interest rate, large firms Average 1-year interest rate for bank loans of larger companies Annual Survey on SME Financing Conditions, CSME Interest rate spread The difference of average 1-year interest rate for SME’s loans and larger company’s loans (in percentages) Annual Survey on SME Financing Conditions, CSME Collateral, SMEs Percentage of collateral-based loans of SMEs to the total amount of bank loan of SMEs People’s Bank of China Collateral, Small and Micro Enterprises Percentage of collateral-based loans of Small and Micro Enterprises to the total amount of bank loan of Small and Micro Enterprises People’s Bank of China Percentage of SME loan applications The share of SMEs that have applied bank loan in latest year Annual Survey on SME Financing Conditions, CSME Rejection rate The ratio of rejection to latest loan applications in latest month Annual Survey on SME Financing Conditions, CSME Utilisation rate 1the proportion of money that is deposited in bank account for reserve use in its latest bank loans of SMEs Annual Survey on SME Financing Conditions, CSME Non-bank finance Venture and growth capital Total amount of outstanding venture and growth capital invested in all stages, calculated in accumulative way. The stock of VC in this year =The stock of VC in previous year + the incremental VC in this year -the exit VC in this year Chinese Academy of Science and Technology for Development, Ministry of Science and Technology of P.R.China Venture and growth capital (growth rate) Total amount of venture and growth capital invested in growth stage, mature stage and restructure stage Chinese Academy of Science and Technology for Development, Ministry of Science and Technology of P.R.China Venture and growth capital (in