China will provide better support for small and medium-sized enterprises (SMEs) by simplifying how funds are allocated, the Ministry of Finance (MOF) said on April 14.

The ministry, along with the ministries of industry and information technology, science and technology, and commerce, issued a notice to improve the efficiency in the way funds are allocated to SMEs.

According to the notice, funds will be allocated to SMEs to help improve technological innovation, financing, services, and international cooperation.

The notice also highlighted more support for SME innovation in information technology, resource saving, new energy development, the biomedical industry and modern agriculture.

A subsidy for each new innovative project will stand at no more than 3 million yuan ($487,560), or 40 percent of the research and development cost at most, according to the notice.