Legal basis: Article 5 of the Regulations on Supervision and Administration of Financing Guarantee Companies in People's Republic of China (PRC) promotes the establishment of a government financing guarantee system, develops government-supported financing guarantee companies, establishes a cooperation mechanism among the government, banking financial institutions and financing guarantee companies, and expands the scale of financing guarantee business for small and micro enterprises, agriculture, rural areas and farmers and maintains a low rate.
The financial departments of the people's governments at all levels provide financial support to financing guarantee companies that mainly serve small and micro enterprises and "agriculture, rural areas and farmers" through capital investment and risk sharing mechanism. The specific measures shall be formulated by the financial department of the State Council.