The Asian Development Bank (ADB) announced Wednesday that it will make an equity investment of up to three million U.S. dollars in Credit Orienwise Group Limited, a company specializing in guaranteeing loans for small and medium-sized enterprises (SMEs) in China.

ADB's new investment is a follow-on to a 10 million dollar investment made in Credit Orienwise Group in April 2005.

"SMEs play a significant role in China's economy and are key drivers of employment, economic growth, and development," said Melissa Balinghasay-Paterno, an investment specialist with ADB's Private Sector Department.

Official data showed that SMEs account for almost half of the country's gross domestic product and provide 75% of urban and rural employment. The industrial output of SMEs has been increasing at an average annual rate of 30%, compared to 20% for industry as a whole.

Credit Orienwise Group is an offshore principal holding companywith subsidiaries operating as credit guarantee companies in China.

Source: Xinhua