Boom and Bust cycles are inherent to our global economy. Amid the financial meltdown, Chinese Premier Wen Jiabao took a swiftly move to substain economic growth by excerising a “proactive fiscal policy” and “moderately-loosened monetary policy”.

It is a quick shift from the “prudent fiscal policy ” and “tightened monetary policy” outlined by the mainland government at the end of last year.

The new set of policy apparently is good news to SMEs facing the menace of the financial tsunami. Premier Wen reckoned that loan quota controls imposed by the central bank to commercial lenders would be scrapped to stimulate lending to support key government projects, agriculture and SMEs.

Premier Wen highlighted the fact that a RMB4 trillion worth of economic plan was on its way to boost domestic demand up to 2010.

Also on today’s front-page story is Hong Kong Trade Development Council would spend HK$120 million from its reserves to attract overseas buyers and subsidize local companies to exhibit their goods and services.

The package is largely targeted to 20,000 Hong Kong-based SME companies whose clientes coming from Russia, Eastern Europe, the Middle East, North Africa, Southeast Asia and the mainland.

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