China SMEs hit by borrowing pains as banks made to rein in risky loans

Hong Kong

CHINA'S small to medium-sized enterprises (SMEs), already weighed down by massive debt, now also face a funding squeeze as regulators push banks to rein in riskier corporate loans - including the short-term credit on which many depend.

While China's large and state-backed entities maintain access to cash, smaller firms said that they are finding it tougher to get loans from state-owned banks, forcing them to think twice about investments and - for some - seek costlier alternatives.