"We have noticed that private lenders are totally inadequate in meeting the huge demand from our local businesses while the State-owned banks that used to offer larger loans also have difficulty coming up with the right solutions," Zhang said.
Some 30 small loan companies have already registered with the government since March, with total registered capital of more than 8 billion yuan ($1.28 billion), he said.
To supply SMEs with innovative financial products, the new regulations promise that all kinds of bonds and securities will soon be introduced to the city's financial market.
"The local private loan companies are encouraged to develop trial services to process the private placement of SME bonds, and the exchange in shares of non-listed companies," Zhang said.
The city aims to have more than 30 listed companies in 2015 and another 50 ready for the initial public offerings. It will welcome more securities companies to set up branches.
Zhang also pledged the government's encouragement of direct investment overseas by local individuals.
Zhou Dewen, chairman of the Wenzhou SME Development Association, pointed out that the new regulations contain innovations for local enterprises' direct financing and loan terms.
"There are more options for SMEs to access loans and take part in the city's development by investing in a larger variety of business areas," he said.
10th China Int'l Auto Exhibition to be held in Guangzhou
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