China's financial system is failing to meet the needs of many of its vast number of small to medium-sized enterprises (SMEs), according to Zhang Tao, deputy governor of the People's Bank of China (PBoC). They are critical to maintaining the country's future levels of employment at a time when capacity is being reduced in many major basic export industries, he said.

China is currently rallying the different organs of its extended state to reduce overcapacity, destock, deleverage, reduce costs and