Entrepreneurs feel confident in China's development, according to a report released by the China Entrepreneurs Forum and Institute of Minsheng Economic Research of Tsinghua University on Sunday.

Chinese entrepreneurs' development confidence index rose to 56.88 in the first half of 2019, up 4.19 from the second half of 2018, the survey showed.

A main factor in the rebound of entrepreneurs' confidence is the improvement of the social and cultural environment, the report said, citing the efforts in fighting criminal gangs and encouraging innovation, integrity and entrepreneurship.

The policy environment index reached 57.8 in the first half of 2019, up 10.3 percent from the second half of 2018. The report said this shows the cut of taxes and fees, and the establishment of science and technology innovation board, and the reforms of the business registration procedures also encouraged entrepreneurs' confidence.

Labor and financing costs

However, factors like rising labor costs and financing costs constrained their confidence. The report said nearly 80 percent of companies saw increasing labor costs and nearly 50 percent faced the problem of higher financing costs in the first half of 2019.

Wang Yong, deputy dean of Institute of Minsheng Economic Research of Tsinghua University, said various reform policies enhanced the confidence of entrepreneurs in the first half of the year, but Chinese entrepreneurs still need to strengthen confidence to tackle the complex external environment in the second half of the year.

Released on the closing ceremony of 15th summer summit of Yabuli China Entrepreneurs Forum 2019 held in north China's Tianjin Municipality, the report surveyed more than 1,200 entrepreneurs, covering evaluative aspects of the economic environment, policy environment, political and legal environment, social and cultural environment.