GUANGZHOU: Despite all the negative impacts of the global financial crisis, private-sector business in this south China province has maintained strong momentum this year.

Citing statistics, Yang Jianchu, director of the provincial economic and trade commission of Guangdong, said that the private-sector economy, mostly consisting of SMEs, reported a growth of 15.2 percent in its industrial output in the January to July period of this year, much higher than the State-owned sector or foreign-funded sector.

The sector also saw a smaller decline in its foreign trade despite the severe challenges of the global economic recession.

Private-sector enterprises reported total imports and exports worth $48.44 billion in the first half of this year, a decline of 1.3 percent from a year ago.

The province's foreign trade reported a decrease of 20.7 percent in the first six months of this year. The official attributed the sustained growth of the private-sector enterprises in the province much to the policies the State and the provincial government have issued in support of the development of SMEs in addition to the fact that SMEs are in a better position to accustom to market change and to adjust management and operation strategy accordingly.

He noted policies the provincial government took to lead the response after the global financial crisis hit the economy in Guangdong.

According to the official, the policies allow more flexible and simplified terms for SMEs to get access to credit loans from local banking institutions, offer incentives and help to encourage SMEs to go listing, and support all qualified SMEs to issue corporate bonds and to raise funds directly.

A special 1 billion yuan fund exclusively for SMEs has helped solve their financing difficulties. "The policies have been carried out by the book," Yang noted.

Yang said that the province will continue to promote the pilot program of "equity for capital" to help SMEs solve their financing difficulties and will take good advantage of Southern United Prorperty Right Exchange, the only provincial non-profit financing platform in Guangdong for SMEs.

"The provincial economic and trade commission will improve service for the exhibitors at the upcoming CISMEF so as to help them maximize the business opportunities," he said. "And the provincial commission will gear up to launch campaigns for the promotion of their products nationwide."

The province plans to launch 126 promotional campaigns for its SMEs, 67 of which had been done in the past months to bring about business transactions worth 434.5 billion yuan for the SMEs.

And the province will take steps to promote IT applications among the SMEs and offer incentives to encourage them to invest handsomely in technological renovation, he added.

The province's capital input for technological renovation in the first half of this year was 49.3 percent higher than a year ago, or 33.8 percentage points higher than the increase rate of investment in fixed assets, official statistics indicate.