China's SMEs see stable recovery in October

BEIJING -- Vitality and recovery of China's small and medium-sized enterprises kept improving in October as the country's relief policies generated more tangible benefits, the latest industry data showed.

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs, went up by 0.1 points to 87 in October and hit a new high since February, according to the China Association of Small and Medium Enterprises.

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

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

In general, nearly 97 percent of surveyed firms resumed operations. In the accommodation and catering industry, which was hit particularly hard by the COVID-19 epidemic, the resumption rate reached 94.21 percent.

The survey also showed eased cash strain, increased operating results, and stable investment enthusiasm among the firms, the association said, citing China's pro-SME measures such as the central bank's targeted monetary policies that lowered financing costs.

Fifty percent of the respondents reported a rise in output, 40 percent saw more orders from domestic and overseas clients, and 60 percent registered an increase in sale prices, according to the survey.