SMEs thrive as new momentum to economic growth in Guangzhou

According to the measures, the government will help private companies and SMEs access a 30 billion yuan fund.

In it, the district government will subsidize companies for bank interests, guarantee costs and the interests of finance leasing.

The government also pledged to cut administrative costs, optimize customs' clearance procedures, lower industrial land and housing costs and build more incubators.

Huayin Health Group, a third-party medical laboratory that focuses on medical examinations and diagnosis in GDD, got a fund of 23 million yuan due to its intellectual property recently.

In a trial move supported by the local government, Industrial Securities issued an asset-backed securitization bond in September. It aims to raise 301 million yuan for 11 private high-tech SMEs in GDD, including Huayin, based on their patent license fees.

"The faster a company develops, the bigger fund demands it will have," said Huang Chunbo, founder and general manager of Huayin Health. "Besides equity and bond financing, banks are our major channel but intellectual property usually doesn't work. They need fixed assets."

The innovative funding attempt is a boon to high-tech SMEs with patents, which can solve financial problems and lower financing costs, he noted. Huang added that the government efforts should not be neglected.