BEIJING — China will further support small and micro businesses as well as agricultural and rural entities in financing and credit enhancement with government guarantee to tide them over the tough time.

Government-controlled financing guarantee and re-guarantee entities should offer more such services to small and micro enterprises as well as agricultural and rural entities, and coordinate with financial institutions to solve small and micro firms' problems in financing, according to a circular issued by the Ministry of Finance (MOF).

The country will accelerate equity investment through state financing guarantee fund this year, aiming at investing 10 prefecture-level government-controlled financing guarantee institutions successful in supporting small and micro firms as well as agricultural and rural entities.

The state financing guarantee fund will also work with banking entities in bulk guaranteed loan businesses, planning to increase 400 billion yuan (about $56.52 billion) in reinsurance service this year, said the circular.

Local government-controlled financing guarantee and re-guarantee entities will halve small and micro businesses' costs for financing guarantee and re-guarantee services in 2020 and further enlarge the scale of services to small and micro firms as well as agricultural and rural entities.