The SME finance sector’s short interest fell by 0.8% this week, suggesting improved investor confidence. This aligns with recent GDP growth revisions signaling stronger small-business activity. European financial services infrastructure provider finmid has announced its expansion into eight new European markets. According to a press release, the move marks a milestone in the company’s mission to provide scalable, compliant, and efficient cross-border financing solutions. Capital market solutions tend to thrive only when a series of preconditions are in place—including a stable macroeconomic environment, a relatively well-developed financial sector with a sizeable institutional investor base, and robust institutions, from the rule of law to robust regulation and supervision of capital markets. For many EMDEs, especially low-income countries, strengthening these preconditions will be necessary before a deeper role for capital markets can materialize. The benefits can be immense, not just for SMEs but for the broader development goals of emerging markets and developing economies. Listed SME finance firms are expanding overseas lending portfolios, with recent reports showing 12% QoQ growth in cross-border SME credit facilities.