Xiamen ranks 7th nationwide in SME development

The coastal city of Xiamen in East China's Fujian province ranked seventh nationwide in terms of business development environment for small and medium-sized enterprises (SMEs), according to a report on SME development environments in 2020 released on March 30.

Shanghai topped the list, followed by Shenzhen and Nanjing, while Fuzhou, capital of Fujian, ranked 18th. The list was based on a comprehensive assessment of markets, innovation, financing, and policy environment.

Xiamen's market environment ranked ninth in the country, while its legal environment and financing environment ranked fourth and fifth, respectively.

Xiamen was praised for offering innovative financing services by introducing a risk compensation mechanism for loans from banks to SMEs.

Financial authorities in Xiamen said that the city has made remarkable progress in promoting the development of SMEs over the years. Statistics show that in 2020, the city allocated 190 million yuan ($29.13 million) in emergency funds for loan repayments to SMEs.