The county-level city of Qidong – administered by Nantong in East China's Jiangsu province – recently announced its first financing white list – or favored-status, fast-track funding list – to reduce the fiscal burdens on resident companies that qualify and boost their current production and future development.

Under it, unsecured and unpledged credit loans totaling 236 million yuan ($35.24 million) will be granted to 63 resident enterprises on the list.

This year, the Qidong municipal finance bureau and local financial regulators jointly issued an action plan, to address the financing difficulties of micro, small and medium-sized enterprises or MSMEs, lower their financing thresholds and costs and advise financial institutions to bolster credit support for MSMEs.

Under the plan, the Qidong finance bureau set up a risk compensation fund for the development of inclusive finance, to provide pure credit loan products for eligible MSMEs. So far, loans worth 658 million yuan have been issued to 184 enterprises.

In addition, in order to boost the funding of resident businesses, the finance bureau of Qidong and financial authorities worked closely together.

They released the names of the first group of enterprises to be included on the financing white list. As a result, participating banks can complete the approvals and loan procedures within three days after the white-listed enterprises apply for loans within the credit limit.