For small- and medium-sized enterprises (SMEs), the biannual Canton Fair, China's largest export trade show, would be the perfect chance to showcase their products and secure face-to-face communications with numerous overseas businessmen. But the fair's high threshold is usually out of their reach.

The picture is likely to change with the first-ever SMEs Fair, starting from next Monday (Oct. 18) in Guangzhou.

The five-day event will run simultaneously with the Canton Fair which will be held also in the same city from today to the end of the month.

"One big advantage of the fair is that it will naturally share the visiting businessmen with the Canton Fair," said Wu Kaili, an official with the Guangdong Provincial Committee of Economic Co-operation and Trade.

Co-organized by the National Development and Reform Commission, State Administration for Industry and Commerce and Guangdong provincial government, the fair is set as an annual event starting from this year.

According to statistics, the mushrooming SMEs created 56 per cent of China's GDP, 62 per cent of total exports, 46 per cent of tax income and 75 per cent of employment opportunities last year. The number of SMEs totals 1.34 million, accounting for 99 per cent of all industries in China.

In contrast to their significance in the economy, SMEs have little access to bank loans and high-level trade platforms like Canton Fair.

Of every 10 enterprises having secured bank loans, only one is an SME, according to the SMEs Fair organizing committee.

Financing issues are to be discussed on the fair, among entrepreneurs and the officials from banks, brokerages and exchanges.

"It's urgent (for SMEs) to have a platform of their own," said Zhang Dejiang, Secretary of Guangdong Provincial Committee of CPC. .

Editor: Olivia