According to figures attributed to the Central Committee of China Communist Youth League (CCYL), 190,000 rural businesspeople under the age of 40 participated in a microfinance scheme designed in partnership with local financial institutions to help the youth start businesses. In the first half of 2012, CCYL channeled CNY 9.76 billion (USD 1.6 billion) through this scheme. CCYL also allocated CNY 400 million (USD 63.4 million) in interest subsidies to be used in central and western China.
In 2011, the 67 microfinance institutions in China that reported data to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, registered a total of USD 13.3 billion in loans, 568,554 active borrowers, USD 27.2 billion in deposits and 7.6 million depositors.
By Mihaela Grindeanu, Research Associate
Sources and Additional Resources:
The Standard story: “Microfinance scheme backs young businessmen”, http://www.thestandard.com.hk/breaking_news_detail.asp?id=23754&icid=2&d_str=20120823
MicroCapital story, May 10, 2012: “MICROCAPITAL BRIEF: Chinese Government Starting Rural Financial Reform Project in Lishui”, https://www.microcapital.org/microcapital-brief-chinese-government-starting-rural-financial-reform-project-in-lishui/
MicroCapital story, April 9, 2012: “MICROCAPITAL BRIEF: Chinese Government Establishes 12 Goals to Improve Local Capital Markets, Access to Finance for Private Small and Medium-Sized Enterprises”, https://www.microcapital.org/microcapital-brief-chinese-government-establishes-12-goals-to-improve-local-capital-markets-access-to-finance-for-private-small-and-medium-sized-enterprises/
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