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China should provide more credit support for bonds issued by small and medium companies to boost their attractiveness, streamline the issuing process, and help develop the high-yield bond market to step up direct financing for such firms, a research paper published by the People's Bank of China said on Tuesday.
Outstanding bonds by SMEs accounted for just 1.3% of all bonds by 2019, according to the paper.
Beijing has prioritised support for SMEs, which have borne the brunt of the covid slowdown.