The Chinese government on Tuesday announced the launch of a special guarantee program with a total scale of 500 billion yuan (about 72 billion U.S. dollars) to support investment by micro, small and medium-sized private enterprises.

Implemented through the National Financing Guarantee Fund over a two-year period, the program will cover not only medium- and long-term loans, but also financing needs related to daily operations, such as factory expansion, shop renovations and working capital, according to official documents jointly released by the China's Ministry of Finance (MOF) and several other competent departments.
"The 500-billion-yuan investment guarantee program, supported by a tiered government financing guarantee mechanism from central to provincial and city levels, is expected to leverage private investment to the tune of nearly 900 billion yuan. This program is crucial for stabilizing and stimulating private investment at the moment," said Yuan Dong, director of China Economic Research Center of the National Academy of Financial and Economic Strategy at the Central University of Finance and Economics.