China's State Council has announced plans to implement more fiscal and taxation policies, to help small and medium-sized enterprises tackle financing problems.

These include preferential tax policies to promote development, through raising the value-added tax and sales tax thresholds for small and micro-enterprises, and reducing enterprise income tax until 2015.

The central government also plans to increase investments in SMEs by over 1 billion yuan to 14.1 billion. And establish a development fund, in which 15 billion yuan will be injected in 5 years, with 3 billion set for this year.

The State Council emphasized the need to realize existing policies to boost financing to small and micro-businesses, ensuring a higher growth rate in loans compared with the previous year. And further to stimulate development by relaxing regulations on private, foreign and international organization’s participation in small financial institutions.