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The Report on the Economic Daily – PSBC Small and Micro-sized Enterprise Operating Index for June 2021 Is Released

2021-07-20

In June 2021, the Economic Daily – PSBC Small and Micro-sized Enterprise Operating Index (SMEOI) reported 44.3, on a par with that in last month. The index has grown steadily and moderately since June 2020.

Regarding the component indices, three out of the eight indices went up, while the other five went down. Specifically, the market index, purchasing index and confidence index posted 39.8, 42.4 and 41.4 respectively, up 0.3 point, 0.2 point and 0.3 point; the performance index, expansion index, financing index, risk index and cost index stood at 44.3, 42.6, 52.9, 48.9 and 63 respectively, down 0.2 point, 0.2 point, 0.3 point, 0.3 point and 0.2 point.

In terms of the regional indices, three out of the six regional indices went up, one remained unchanged, and the other two went down. The North China index reported 41.9, down 0.1 point. The Northeast China index registered 41.1, up 0.2 point. The East China index was 45.4, up 0.1 point. The Central & South China index stood at 46.3, down 0.1 point. The Southwest China index reported 43.5, on a par with that in the previous month. The Northwest China index posted 41.4, up 0.1 point.

Sun Wenkai, professor at the School of Economics of Renmin University of China, claimed that the SME Index remained stable, and meanwhile manifested two highlights: First, the prevailing rise in the market index of various industries reflected the continued recovery of the market at large, especially demonstrating a sustained rise in the business volume and the main business income of the accommodation & catering industry which was heavily affected by the pandemic. Second, although the financing index has seen a decline, it has been standing at a high level of above 50 for more than a year, signifying that the financing environment for SMEs is experiencing a sustained improvement. Although the current recovery momentum of SMEs is relatively sluggish, if they can seize opportunities to carry out reform and make adjustments, it will help to lay a solid foundation for sustainable and healthy development in the longer term. We still need to adopt discretionary approaches in the macro-economic policies to stabilize the economic recovery. We could slow down the withdrawal of fiscal and monetary policies, continue to increase fiscal spending, and moderately ease credit; we should also give play to the power and negotiation competence of large enterprises in the futures market, reduce costs through centralized procurement of commodities, and if necessary, consider providing price subsidies for commodities.