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Asian small and medium-sized enterprises are optimistic about market prospects this year and many believed China would take the lead in the region's economic development, a survey indicated.

Nearly half of the surveyed enterprises predicted promising market prospects, and 88 percent of the surveyed managers reckoned China, followed by India and the Republic of Korea, as the bellwether in boosting regional economic development, indicated the survey published by United Parcel Service (UPS) on Tuesday.

The survey found that 72 percent of enterprises foresee trade growth in Asia and 60 percent predict trade growth between Asia and the United States.

Most of the surveyed argued that small and medium-size enterprises in China are most competitive in Asia, and China remains attractive to them, said the survey.

It also found lack of innovation, qualified staff and funds has become a major obstacle for Asian small and medium-sized firms.

The survey interviewed managers of over 1,200 companies with annual turnover between US$500,000 and US$10 million in countries including China, India, Japan, the Republic of Korea, Singapore and the Philippines.

The surveyed companies involved dealers of automobiles, electronic products, textile and garments, drugs and health food, clocks and watches, toys and sports facilities.

(Xinhua News Agency April 14, 2006)