SME Confidence Index launched in China by Standard Chartered
Updated: Sep 19, 2014 02:13:12pm
New Delhi, Sept 19 (KNN) Standard Chartered has launched its China SME Confidence Index (SMEI) in order to fill the information gap between the growing importance of SMEs in China’s future growth strategy and a lack of quality information on this sector.
Initially launched in October 2011 as the first confidence index targeting SMEs developed by an international bank in China, SMEI has been substantially revamped in order to give a deeper understanding of the activity and sentiment among small and mid-sized Chinese companies, Standard Chartered said in a release.
SMEI, launched on Wednesday, is designed to provide a snapshot on the business environment and outlook for China SMEs. It is based on information drawn from monthly surveys of over 600 SMEs across a wide range of sectors and locations, based on their contributions to the economy. SMEI is then calculated as a weighted average and released on a monthly basis, the release added.
In addition to the headline SMEI, our monthly surveys contain two new key indicators, “Credit Index” and “Expectation Index”; when combined, these offer a view on the general macro environment, operating conditions, investment direction and financing needs of China SMEs, as well as their expectations over the coming three months.
According to the release, compared with other economic indicators, the SMEI differs because it is 100 per cent SME focused.
“Corporates that enter into SMEI must meet the criteria for SMEs outlined by the National Bureau of Statistics. The SMEI sample distribution is designed to be comparable in terms of industrial and regional distribution of SMEs nationally,” the release said.
SMEI survey measures three aspects of SMEs – current business performance, credit status and expectations over the next three months. In contrast, most other indicators focus only on current business performance.
SMEI is released each month before most other economic indicators. For example, September SMEI will be released on 30 September, rather than in October like most other monthly economic indicators. SMEI survey contains 27 question based sub-indices, which provide detailed information for in depth analysis. These range from information on production and new orders, to financing costs, liquidity stresses and banks’ attitude to lending.
Head of Asia Macro Research, Standard Chartered Bank, David Mann said, “SMEs are a crucial segment of China’s economy, generating over 60 per cent of GDP and 50 per cent of tax revenues. They outnumber large companies by a wide margin, accounting for 99 per cent of the total number of companies in China. They also employ many more people than large companies, contributing to 80 per cent of jobs in cities.
“We have developed the SMEI in order to fill the information gap between the growing importance of SMEs in China’s future growth strategy and a lack of quality information on this sector. We hope it will become a benchmark indicator for SMEs’ business and operating conditions, which could be incorporated into forming economic policies and business strategies by policy makers, business and financial markets.” (KNN/SD)
Initially launched in October 2011 as the first confidence index targeting SMEs developed by an international bank in China, SMEI has been substantially revamped in order to give a deeper understanding of the activity and sentiment among small and mid-sized Chinese companies, Standard Chartered said in a release.
SMEI, launched on Wednesday, is designed to provide a snapshot on the business environment and outlook for China SMEs. It is based on information drawn from monthly surveys of over 600 SMEs across a wide range of sectors and locations, based on their contributions to the economy. SMEI is then calculated as a weighted average and released on a monthly basis, the release added.
In addition to the headline SMEI, our monthly surveys contain two new key indicators, “Credit Index” and “Expectation Index”; when combined, these offer a view on the general macro environment, operating conditions, investment direction and financing needs of China SMEs, as well as their expectations over the coming three months.
According to the release, compared with other economic indicators, the SMEI differs because it is 100 per cent SME focused.
“Corporates that enter into SMEI must meet the criteria for SMEs outlined by the National Bureau of Statistics. The SMEI sample distribution is designed to be comparable in terms of industrial and regional distribution of SMEs nationally,” the release said.
SMEI survey measures three aspects of SMEs – current business performance, credit status and expectations over the next three months. In contrast, most other indicators focus only on current business performance.
SMEI is released each month before most other economic indicators. For example, September SMEI will be released on 30 September, rather than in October like most other monthly economic indicators. SMEI survey contains 27 question based sub-indices, which provide detailed information for in depth analysis. These range from information on production and new orders, to financing costs, liquidity stresses and banks’ attitude to lending.
Head of Asia Macro Research, Standard Chartered Bank, David Mann said, “SMEs are a crucial segment of China’s economy, generating over 60 per cent of GDP and 50 per cent of tax revenues. They outnumber large companies by a wide margin, accounting for 99 per cent of the total number of companies in China. They also employ many more people than large companies, contributing to 80 per cent of jobs in cities.
“We have developed the SMEI in order to fill the information gap between the growing importance of SMEs in China’s future growth strategy and a lack of quality information on this sector. We hope it will become a benchmark indicator for SMEs’ business and operating conditions, which could be incorporated into forming economic policies and business strategies by policy makers, business and financial markets.” (KNN/SD)
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