World Bank Group officials spent the weekend trying to raise enthusiam among venture capitalists and fund managers in Hong Kong for investment in Sichuan province's small and medium-sized enterprises (SMEs).
The officials were from the China Project Development Facility (CPDF), recently established by the World Bank's private-sector International Finance Corp (IFC).
In October last year, the CPDF opened an office in Sichuan's capital city, Chengdu, to help develop China's private sector.
Premier Zhu Rongji said SMEs, which account for one-third of gross domestic product, would play a key role in absorbing millions of workers laid-off as state-owned enterprises were reformed.
In China, however, SMEs face credit hurdles at state-owned banks.
CPDF investment services head Yang Li said: 'In the mainland, the banks have money. The problem is the People's Bank of China requires that all loans have to be fully collateralised or have certified guarantees. Most of the time, SMEs cannot provide adequate collateral, so the banks have money but they cannot lend.'