The capital market will create favorable conditions for the development of small- and medium-sized enterprises (SMEs), Chinese Vice Premier Liu He said Tuesday at the opening of a SME forum in Changsha, central China's Hunan Province.

Liu stressed that it is important to support the development and innovation of SMEs as they are the main source of employment and the main entities in the market. Liu said Chinese economy will be good only if SMEs are well developed.

The vice premier added the Chinese government will resolutely protect intellectual property rights and create a good business environment for the SMEs, while endeavoring to safeguard fair competition and protect the interests of consumers in the capital market.