The non-state sector in Guangdong Province, an economic locomotive in southern China, kept its growth momentum in the first half of this year, thanks partly to local banks' financial support.

According to statistics provided by the provincial economic and trade authorities, the non-state sector invested 75.499 billion yuan (US$9.1 billion) in capital construction between January and June, a year-on-year growth of 24 percent. Meanwhile, it exported US$7.78 billion worth of goods, up 87.5 percent over the same period of last year.

To ease capital shortage of smaller enterprises, Guangdong has launched a variety of guarantee institutions for credit extension. Currently, there are 75 such institutions in the province, 57 more than at yearend 2002.

They have secured loans of 15.179 billion yuan (US$1.83 billion) for private enterprises, and helped the beneficiaries increase sales by 28.045 billion yuan and pre-tax profits by 1.941 billion yuan (US$233.9 million).

By the end of June, there were 353,000 non-state enterprises in Guangdong, up 27.4 percent from the year-earlier level. Of the total, 19,638 are authorized to deal in import and export, 4,862 more than the 2003 yearend level.

The total also include 6,508 recognized scientific and technological enterprises, of which more than 3,000 are dedicated to new- and high-tech business, accounting for more than 80 percent of the province's total.

(China Daily August 1, 2004)