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Offering financing support to small- and medium-sized enterprises (SMEs) is a priority for the China Development Bank, its governor said.

 

The bank will make full use of its existing business network and its close cooperation with local governments at all levels to support the development of SMEs, said Chen Yuan, governor of the China Development Bank, at a signing ceremony.

 

The bank inked a memorandum of understanding with the Hong Kong Trade Development Council (TDC) yesterday, to support two-way development of SMEs from both the mainland and Hong Kong.

 

"The cooperation will support SMEs based in Hong Kong to expand their business on the mainland, as well as to assist mainland SMEs to go overseas through Hong Kong," said Peter Woo, TDC's chairman.

 

"We will help SMEs deal with challenges in the increasingly competitive market," he said.

 

The two sides did not reveal details of the cooperation. But Chen said it would offer more loans to SMEs based in Hong Kong.

 

"Their development on the mainland is like planting a seed to cultivate the business environment," Chen said.

 

The role of good management concept brought by Hong Kong companies to the mainland is as important as that of infrastructure construction in local economic development, he said, adding he expected that, through Hong Kong, more overseas SMEs would be attracted to the mainland.

 

(China Daily January 24, 2007)