Recently, a special bank in Dongguan, a city in south China's Guangdong province, was set up to provide financial services to small and medium-sized high tech enterprises in the city's Songshanhu High Tech Industrial Park. Different from traditional commercial banks, this bank plans to design financial and credit products particularly for high tech enterprises and will develop professional operation procedures for them.

"Only less than half of the newly established small and medium-sized high tech enterprises could survive from their hardest first one to three years due to a lack of money, which banks might not be able to offer for many reasons. For example, during the period, those enterprises are not capable of getting bank loans by using their tangible assets as collateral and their intellectual properties have not yet formed," said a government official, adding that the specialized bank is designed to help out those enterprises.

He continued: "In view of the risks of delivering financial support to newly established SMEs, it is of great significance for the specialized bank to adopt a new perception in evaluating risks and managing assets." [Chinese version is available on gzdaily.dayoo.com]