China's outstanding loans to small business rise in Q1

Outstanding loans to China's small business continued to grow in Q1, official data showed on Friday.

Outstanding loans to small business had totaled 21.9 trillion yuan (3.2 trillion U.S. dollars) at the end of March, up 17 percent from a year ago, the People's Bank of China (PBOC) said in a statement.

The growth was faster than that recorded by bigger businesses, the central bank said.

Small business loans account for nearly one third of total outstanding loans, 1.7 percentage points higher than a year ago.

The government is encouraging banks to support small businesses, which often have difficulty obtaining bank loans.

The banking regulator has differential regulatory policies to improve the coverage of loans for small businesses and reduce their financing costs. Endi