China’s small and medium-sized enterprises (SMEs) maintained their recovery momentum in October amid strengthening policy support for the private economy and investment, data from an industry association showed on Monday.

The Small and Medium Enterprise Development Index, based on a survey of 3,000 SMEs across eight major sectors, stood at 89 in October, up 0.3 points month-on-month , the highest growth rate since March 2023, according to the China Association of Small and Medium Enterprises. Mid-sized businesses said.

All eight subindexes recovered last month, according to the association. For example, the macroeconomic subindex stood at 98.8 in October, up 0.6 points from the previous month.

The macroeconomic situation tracking sentiment index reached 103.4, up 0.6 points from the previous month, while the industrial situation sentiment index was 94.1, up 0.6 points from the previous month. 0.5 points compared to the previous month, indicating a notable rise in market confidence and economic operations thanks to the implementation of a set of progressive policy measures, according to the association.

Ma Bin, executive vice president of the association, said the October index reflected that SMEs were on track to achieve an overall recovery early in the fourth quarter, which will also create favorable conditions for achieving economic and commercial growth for the whole year. social development goals.

In China, more than 90 percent of private enterprises are SMEs, and more than 90 percent of SMEs are private enterprises, Xinhua News Agency reported.

The private sector contributes about 50 percent of China’s tax revenue, 60 percent of its GDP, 70 percent of its technological innovation and 80 percent of its urban employment.

In addition to good growth in SMEs, China’s manufacturing purchasing managers’ index (PMI) stood at 50.1 in October, up from 49.8 in September and crossed the boom-bust line. of 50 for the first time since May. , according to the National Bureau of Statistics.

“Thanks to a set of progressive policy measures, various sectors, including consumption and investment, showed improvement in October. This strong momentum is expected to strengthen in November and December this year, and even in 2025,” said Chen Fengying, an economist and former director of the Institute of Global Economic Studies at the China Institutes of Contemporary International Relations, told the Global Times on Monday.

As part of a package of fiscal policy measures, Chinese lawmakers on Friday approved a State Council bill to raise the debt ceiling of local governments by 6 trillion yuan ($838 billion). ) to replace existing hidden debts.

“The deployment and implementation of a set of policies including local government debt swaps, stabilization of the real estate sector and injection of liquidity into the market underlines the determination and capacity of the central government to ensure growth stable economy,” Chen said.