China's small and medium-sized enterprises development index reaches 89.5 in first quarter - China report

The China Association of Small and Medium Enterprises announced on the 10th that China's small and medium enterprise development index for the first quarter (January-March) showed the largest increase since 2020.
In the first quarter, the SME development index rose 0.5 percentage points to 89.5 compared to the fourth quarter of 2024 (October-December).
Small and medium-sized enterprises in the social services, manufacturing, transportation and information and communication software industries performed best. The capacity utilization rate of small and medium-sized enterprises continued to rise, with the proportion of enterprises operating at full capacity increasing by 11 percentage points.
An official from the association said, "The SME Development Index has grown for two consecutive quarters, reaching its highest level since the first quarter of 2020." One of the reasons for this is the continued success of the comprehensive growth policy.
In addition to the continued effectiveness of the measures, a combination of increased consumption during the holidays and favorable conditions in various regions led to an accelerated recovery in production and management conditions for small and medium-sized enterprises in the first quarter.
The association's survey showed that the growth outlook for small and medium-sized enterprises continued to improve in the first quarter, costs fell slightly and corporate profits improved.
In terms of market indexes, among the eight industries surveyed, the growth in information and communication software, social services, wholesale and retail, transportation, and manufacturing was remarkable, and demand is steadily increasing.
In addition, investment appetite improved in five industries, including social services and construction.