ADB to invest up to 3 mln USD to support SMEs in China

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