The Lujiazui Financial District in Pudong with the Shanghai Tower, the Shanghai World Financial Center, Jinmao Tower, and Oriental Pearl TV Tower in Shanghai, July 18, 2018. (Photo: IC)

China's business finance climate has improved, backed by encouraging policies from both central and local governments according to a Cheung Kong Graduate School of Business professor.

"Our monthly report shows the index of the financing environment for businesses in China has been climbing and reached a two-year high this month.

"Efforts to enhance companies' financing environment from governments have proved efficient," Li Wei said.

Li was referring to the CKGSB Business Conditions Index, released Monday.

The index shows the financing environment for companies reached a score of 53 this month, up from 42.7 in February.

It also marks the first time the index has exceeded 50 since December 2016.

The overall BCI has continued its growth since October, reaching 60.8.

The index was first released in 2011, with figures above 50 indicating improving conditions and those below suggesting worsening conditions.