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A supposed wave of bankruptcies that has swept China's small businesses in recent time is not a matter of fact, and the central government is mulling new policies to support these businesses, an official said Thursday.

"I can assure you it is not true that a large number of China's small- and medium-sized enterprises (SMEs) are going bust," Zhu Hongren, chief engineer and spokesman for the Ministry of Industry and Information Technology (MIIT), said during a press conference.

Zhu said that he has been doing field research in areas where the bankruptcies have been reported, including the city of Dongguan in south China's Guangdong province.

However, several SMEs have faced difficulties such as a lack of legal financing channels, excessive increases in raw material prices and increased costs for labor and financing, Zhu said.

"It is simply natural that some enterprises might die and new ones will appear. This is a normal phenomenon that is determined by the rules that govern market economies," he said.

For the sake of social stability, local governments at all levels should provide support in accordance with laws, Zhu said. The State Council, or China's cabinet, is preparing for a conference at which new support measures for SMEs will be deliberated, he added.

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