Lin Yongqing (left), general manager of Jiangsu Hewangyuan Electric Co Ltd, feels grateful and excited to secure a loan of 8 million yuan without a pledge. [Photo/ntfabu.com]

In order to help high-tech enterprises in Rudong grow faster and more smoothly, the county – administered by Nantong city in East China's Jiangsu province – initiated a credit guarantee service named Yuan Qu Bao in the prefecture-level metropolis in May.

On May 18, the Rudong financial supervision administration released the first list of enterprises to have access to the Yuan Qu Bao service, with 23 leading companies from five major industrial parks included.

"Yuan Qu Bao, tailored specifically for those companies with high technology content and fast growth, but with credit needs, aims to help manufacturing enterprises grow stronger through financial assistance," said Chen Huiyu, head of Rudong county.

To set the bonding companies and banks at their ease, Rudong allocated 30 million yuan ($4.7 million) as a special fund for compensation if loans released by the financial institutions appear to be uncollectible.

This move will fundamentally dispel the doubts of financial organizations, according to Wu Hao, head of the county's financial supervision administration.

"We are in urgent need of an 8 million yuan loan to enlarge production capacity, for the increasing orders for high and low voltage fault ride-through test detection platforms, independently being developed by our company," said Lin Yongqing, general manager of Jiangsu Hewangyuan Electric Co Ltd.

"The Yuan Qu Bao service rolled out by the Rudong government helps us remove the obstacles of development, in that our rented plant can't be pledged," Lin added.