On Dec 12, Qingdao Financing Guarantee Group held a press conference to launch new products and initiatives aimed at optimizing services and reducing costs.

These measures, as part of the group's enterprise support and relief program, offer groundbreaking solutions to the financing challenges commonly faced by micro, small, and medium-sized enterprises (MSMEs). They mark a significant step forward in Qingdao's efforts to innovate financial services for these businesses.

Established on Oct 21, Qingdao Financing Guarantee Group was formally inducted, signifying a solid stride in addressing the financing difficulties of MSMEs in Qingdao.

Among the newly announced policies, the group plans to gradually reduce the average guarantee fee to below 1 percent for private and technology-driven MSMEs, agricultural businesses and farmers, and marine industry enterprises, with reductions of up to 50 percent.

The group also announced adjustments to its guarantee limits: the maximum balance for individual technology-driven MSMEs will increase from 10 million yuan ($1.37 million) to 30 million yuan; for agricultural clients, the cap will rise from 3 million yuan to 5 million yuan; and for supply chain clients, the limit will grow from 5 million yuan to 10 million yuan.

Qingdao Financing Guarantee Group is also prioritizing digitalization, employing AI algorithms and credit big data to build business models that quicken approvals and improve the quality and efficiency of its services. This approach may offer a viable solution to the challenges of unsecured financing.

Huang Yingsheng, Party secretary and chairman of Qingdao Financing Guarantee Group, said that the group will continue leveraging its state-owned strength in financing and guaranteeing to provide solid financial support for the development of MSMEs in Qingdao.

Qingdao Financing Guarantee Group launches new products and initiatives to optimize services and lower costs on Dec 12. [Photo provided to chinadaily.com.cn]

A client consults with a staff member of Qingdao Financing Guarantee Group on potential business on Dec 12. [Photo provided to chinadaily.com.cn]