Credit finance applications by small and medium-sized enterprises in Zhejiang province will be judged on their previous performance completing government contracts, according to a report by Xinhua News Agency.

The report said in June the local government had established a system of credit ratings for SMEs in the province, and that is being applied to all applications for financing.

The measure, the report said, will be used to score companies, as they apply for funding.

The value of government procurement contracts in Zhejiang province in 2011 totaled 77.8 billion yuan ($12.25 billion) , more than 70 percent of which were signed with SMEs.

China Daily-Agencies