(Yicai) Oct. 10 -- The index measuring the operational health of Chinese small- and medium-sized companies rose in the third quarter of the year from the previous quarter and a year earlier, thanks to the combined effects of policies and measures to stabilize growth and signs of economic recovery.

The China Small and Medium Enterprises Development Index came in at 89.2 in the three months ended Sept. 30, up from 89 in the second quarter and 88.3 in the third quarter of last year, the results of a survey from the China Association of Small and Medium Enterprises showed yesterday. A mark above 100 indicates expansion.

China faces new difficulties and challenges in its economic operation, mainly due to the complex and severe external environment, insufficient domestic demand, and operational challenges, the CASME said. Small and micro enterprises still face problems like fierce market competition, rising business costs, declining efficiency, tight capital, and default receivables, it added.

The macroeconomic sentiment index, which reflects the SMEs’ confidence in future development, rose 0.5 point to 98.9 in the third quarter from the previous one. The market and investment indexes stood at 81 and 83.3, up 0.3 point and 0.4 point, respectively, in the period.

With the implementation of policies to stabilize employment and lower taxes and fees, the production and operation of SMEs recovered, their recruitment needs increased, and the supply of labor slightly declined. The labor index remained unchanged at 106.2 in the third quarter.

However, market demand was insufficient, prices and sales were sluggish, and cost pressures continued, as higher revenues did not result in higher profits. The efficiency index stood at a historic low of 74.3 in the third quarter, unchanged from the previous period.

Editor: Futura Costaglione