Can Digital Inclusive Finance Help Small- and Medium-Sized Enterprises Deleverage in China?

Digital technology has energized the development of inclusive finance in China and is beneficial lowering threshold transaction costs financial services expanding coverage. However, it a key issue whether digital can help SMEs overcome financing difficulties, obtain liquidity, reduce corporate leverage, thus achieve sustainable development. By using data from China’s small- medium-sized listed companies an aggregate index at county level 2015–2019, this empirical analysis finds that significantly leverage ratio SMEs; specifically, cut down enterprises through easing constraints reducing costs. Heterogeneity shows more effective for those low- medium-leverage non-private enterprises. Accordingly, suggested government continue to promote finance, deepen supply-side structural reform, improve efficiency recycling. should speed up transformation enable provide precise high-quality institutions system as soon possible, realize scientific supervision risk prevention, finance.