William Ma, chief investment officer at Noah Holdings in Hong Kong, agrees that small companies are at a disadvantage to the state companies when it comes to getting financing.
"In short, I think the key challenge on the SMEs is the lack of proper funding channels at a reasonable market rate to support their business," he told CNBC on Tuesday.
Authorities are clearly aware there is a problem and have been making high-profile public statements about the importance of supporting smaller companies.
On Oct. 19, Vice Premier Liu He told reporters that small and mid-sized firms need help, the official Xinhua news agency reported.
"We must pay high attention to the difficulties faced by micro, small and medium-sized enterprises and roll out precise and effective measures to help them," Liu said, according to Xinhua.
That was followed by a meeting on Nov. 1 between President Xi Jinping and representatives from non-state-owned companies, during which he vowed supportive measures including improved access to financing.
Effects may take time to trickle down through China's vast economy, but such interventions have been well received by investors and are seen as essential.
"It's a game changer," Ma said of Xi's high-profile intervention.
"It's very important to send a strong signal ... that the Chinese government is focusing (on) and supporting the private sector," he said. "It's a very iconic, high-level message."