Small and micro enterprises connecting thousands of households are an important force in stabilizing the economy, promoting employment, and improving people's livelihoods. Since the beginning of this year, with a series of financial policies supporting economic development being implemented, the financing environment for small and micro enterprises has significantly improved. According to data released by the State Administration for Financial Regulation (hereinafter referred to as the "State Administration for Financial Regulation") on November 24th, as of the end of October, the balance of loans for inclusive small and micro enterprises in China was 32.45 trillion yuan, a year-on-year increase of 14.98%, which was 7.47 percentage points higher than the growth rate of various loans. Among them, the balance of credit loans for inclusive small and micro enterprises increased by 30.56% year-on-year, continuing to maintain high-speed growth. This data fully demonstrates that the policy effect of the country's support for financing for small and micro enterprises is gradually emerging. Small and micro enterprises have important strategic significance in promoting economic development. However, due to the relatively small scale of small and micro enterprises, there are problems such as information asymmetry, inadequate internal governance, incomplete credit system, and lack of standard collateral, which make some banks face many difficulties in serving small and micro enterprises Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, told reporters. In order to further unblock the financing bottlenecks for small and micro enterprises, the State Administration of Financial Regulation and the National Development and Reform Commission deployed support for the coordination mechanism of small and micro enterprise financing in mid October. Through the "Thousand Enterprises, Ten Thousand Households" activity, they conducted in-depth visits to industrial parks, communities, and rural areas, comprehensively investigated financing needs, formed "two lists", and recommended small and micro enterprises that meet the conditions to banking institutions. Banking institutions timely and accurately connected to achieve direct access of credit funds to grassroots, fast and convenient, and appropriate interest rates, and opened up the "last mile" of financial benefits for enterprises and the people. In Xinxiang, Henan, this policy has been put into practice. Mr. Wang, who runs a cattle farm, encountered difficulties due to significant initial investments such as building sheds and buying calves, which resulted in exceeding the budget at one point. Under the leadership of the small and micro enterprise financing coordination mechanism special team, Mr. Huang, the customer manager of the New China Rural Commercial Bank branch in Xinxiang, Henan, learned about Mr. Wang's financing needs through on-site visits and has reached a preliminary cooperation intention. This financing support not only solves Mr. Wang's urgent need, but also provides strong guarantees for the future development of his enterprise. In addition, data released by the China Association of Small and Medium sized Enterprises shows that the development index of small and medium-sized enterprises in October was 89, an increase of 0.3 points from September, which is the largest increase this year and the largest increase since March 2023. Among them, the market index continues to rise, and the improvement of confidence expectations and the recovery of market demand mutually promote each other. Among the 8 industries surveyed, 6 industries have seen an increase in market index. Liu Xiangdong, Deputy Director of the Economic Research Department of the China International Economic Exchange Center, stated in an interview with reporters that with the restart and expansion of economic activities, the financing demand of small and micro enterprises has increased. However, to help small and micro enterprises overcome difficulties, it is necessary to increase support for their development, especially in providing necessary support in financing and blood transfusion. According to data from the State Administration for Financial Regulation, in the first 10 months of 2024, the average interest rate for newly issued inclusive small and micro enterprise loans nationwide was 4.42%, a decrease of 0.35 percentage points from 2023. The decrease in average loan interest rates has further reduced the financing costs of small and micro enterprises and improved their operational efficiency Zhou Maohua believes that in the future, it is necessary to continue guiding banks to continuously improve their service capabilities, increase support for the development of small and micro enterprises, smooth internal circulation, stimulate economic development vitality, and accelerate economic transformation and upgrading. In addition, it is necessary to further strengthen the coordination of monetary, fiscal and other policies to achieve the "increase in volume, expansion in scope, and price reduction" of financing for small and micro enterprises. There is a mismatch between the current financial supply and the demand of small and micro enterprises. It is necessary to innovate financial products and services based on the operational characteristics of small and micro enterprises, and provide them with financial services covering the entire lifecycle Liu Xiangdong suggested that in the future, we should further leverage the intermediary function of financial institutions, smooth the channels for funds to directly reach small and micro enterprises, take multiple measures to moderately reduce the financing costs of small and micro enterprises, and use digital means to solve the problem of information asymmetry between banks and enterprises, enhancing the accessibility and rationality of financing for small and micro enterprises. Zhou Maohua said that measures such as optimizing business processes, innovating financial products and services, and digital empowerment need to be taken to effectively reduce service costs, improve risk management capabilities, and constantly enhance the ability and willingness of financial services for small and micro enterprises. (New Society)