China's SMEs continue robust recovery

China's small and medium-sized enterprises (SMEs) registered stable recovery in the fourth quarter of 2020 (Q4) as the country's economy demonstrated strong resilience and vitality, said the country's top economic planner.

In Q4, the Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs, went up 0.2 points from Q3 to 87, according to the National Development and Reform Commission (NDRC).

The reading scored a three-quarter streak of expansion and hit a new high since Q1 2020, NDRC data showed.

The index contains multiple sub-indexes to gauge the performance and expectations of SMEs. A reading below 100 indicates dented vitality.

In the last three months of 2020, the sub-indexes for the sentiment on the macroeconomy, financing, operating cost and labor force were above 100, suggesting an upward trend in business.

Q4 data also showed a sustained positive trend among the firms in terms of investment enthusiasm, enterprise profitability and the ease of cash strain, with relevant indexes rising for the third consecutive quarter.