MKsport East China's Shandong Province. Photo: Xinhua" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-12-05/f390cd91-21ca-4248-8fd9-62d31ba5c146.jpeg" />

Workers weld at a workshop of an automobile manufacturing enterprise in Qingzhou city, East China's Shandong Province. Photo: Xinhua

An index tracking the development of China's small and medium-sized enterprises (SMEs) edged up in the fourth quarter of 2024, driven by the government's supportive monetary and fiscal policies. 

SMEs' confidence and market demand both showed improvement, according to data released by the China Association of Small and Medium Enterprises on Sunday.

The Small and Medium Enterprises Development Index is a key indicator reflecting the economic activity and operational health of SMEs, according to the association.

The data showed that in the fourth quarter, the index stood at 89.0, indicating a modest rise of 0.1 points from the third quarter. 

During the same period, both the comprehensive business index, which reflects overall business performance, and the market index, which tracks supply and demand including orders, production, sales and inventory, all recorded rises of 0.1 points over the third quarter last year.

The association noted an improvement in both the industrial and services sectors, with their respective indices rebounding from earlier declines with a gain of 0.1 points each.

Demand made a steady rebound, with the market index rising to 80.8 in the fourth quarter, an increase of 0.1 points from the previous quarter, according to the report.

SMEs' confidence and market demand showed gradual improvement, contributing to increased sector vitality and growth momentum, said the report. SMEs exhibited a stable operational trajectory with consistent progress, supported by the government's incremental pro-growth policies, according to the association.

China has rolled out a range of supportive measures in the fourth quarter, including measures to bolster private enterprises and SMEs.

"Industrial enterprises have undergone relatively swift transformations in recent years," said Cong Yi, a professor at the Tianjin School of Administration.

Policy support is expected to continue, with initiatives aimed at addressing the technological and talent shortages faced by SMEs during their transformation, according to Cong.