Background Introduction

Beijing Zhongguancun Sci-tech Guaranty Co., Ltd. (hereafter “ZGC Guaranty”) set up on 16th of December of 1999. It is a professional guarantee institute mainly funded by the government and provides the various credit guarantees towards hi-tech SMEs. Its current paid-in capital is 423 million yuan (about 55 million us dollars).

ZGC Guaranty takes the government’s policy as guidance but operates under a managerial mechanism of enterprise. It positions itself as a guarantor with qualification of public creditability in the economic activities; it positions the appraisal and identification of SMEs’ credit value as its core competence while it positions the credit risk controlling and credit harmony facilitating as its operation philosophy.

Until the first half year of 2007, ZGC Guaranty has accumulatively provided credit guarantees of 14.463 billion yuan to 3527 SMEs and has made the SMEs with advanced technologies and good growth potential fast develop. In present, ZGC Guaranty has formed a guarantee capability of 4 billion yuan each year and its guarantee leverage has been over 8 times. It fully secures the SMEs’ loans of banks as well as the rights and interests of other copartners.