www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

BIZCHINA> Insights
Starved for CASH
By Zhu Ping (China Daily)
Updated: 2009-09-15 16:45

Starved for CASH

With the morning sun just peaking over the horizon, Kang Hongqiang is already at the gates of his paper goods factory in Dongguan, ready to start a new business day.

Orders have started to pour in since June as China's economy recovers from the global financial crisis, meaning he can only afford four hours' sleep a night before he must be back at his desk.

"Business is getting better and we seem to have got through the worst of it," said the husky-voiced 33-year-old.

But he complained that it is still too hard for small Chinese firms to overcome financial difficulties because not enough small or short-term business loans are available.

Kang's Xinying Packaging Ltd opened in April last year in a small factory in the city's Chang'an township, part of Guangdong province's manufacturing hub, with an initial investment of about 150,000 yuan ($22,000). Just months later, the world was hit by the worst economic depression since the 1930s, leading to the closure of more than 670,000 small- and medium-sized enterprises (SMEs) in China.

Kang's company survived but was forced to run at a deficit. It reached an annual sales volume of 650,000 yuan but had been predicted to hit 1 million yuan before the crisis.

"I'm much more optimistic about this year. My factory is on the road to recovery," he said, adding he now trades with two foreign-funded firms and that most orders are for packaging, such as paper boxes and worth 50,000 to 60,000 yuan each. 

However, payment can take up to 40 days and, in the meantime, Kang must fork out 8,000 yuan a month on rent and around 40,000 yuan in wages to his 40 workers."I might need to spend 50,000 yuan on materials for one order, but because I have not been paid for a separate completed order I have to reject a new one as we have no liquid cash," he said. "With another 200,000 yuan we would have liquidity. Without it, my company cannot run smoothly."

When staff at the local branch of the China Construction Bank refused his loan application because he did not have a mortgage on the factory, Kang turned to the Standard Chartered Bank but was put off by the high monthly interest rate.

Related readings:
Starved for CASH China's bank loan total exceeds full-year target
Starved for CASH Both small and medium prove to be beautiful 
Starved for CASH HSBC ups SME loan funds by HK$4b

"Unless a firm or organization will vouch for me, the banks will not consider lending me the money. I don't know how to go about getting a guarantee from a third party," he explained. "I had to borrow 80,000 yuan from friends and relatives. I also got 50,000 yuan from a small loan company at a monthly rate of 2.3 percent and once borrowed 80,000 yuan from a private firm at 10 percent interest."

Kang's company is just one of the estimated 42 million SMEs in China struggling to stay afloat in a sea of uncertainty.

Of the 7.37 trillion yuan in loans approved by banks in the first half of this year, medium-sized companies made up 47 percent of the successful applicants, while small firms made up just 8.5 percent, said Li Lianzhong, head of the economy bureau for the Central Policy Research Office, in a recent People's Daily report.

"The difficulties for SMEs in getting loans is an international problem and is not just confined to China," said Liu Yingqiu, a researcher in private economy at the Chinese Academy of Social Sciences (CASS). "The enterprises usually don't have a mortgage, nor are they a profitable investment to banks. A State-owned bank will only earn about 20,000 yuan from a one-year loan of 200,000 yuan to a SME.

"The same reasons make it hard for firms and individuals in rural areas to borrow money, too, meaning a large number turn to private lending or even illegal financing."

Illegal loans totaled about 800 million yuan in 2005, according to Li Jianjun, a professor at the Central University of Finance and Economics in Beijing.

In his book, Research on China's Underground Financing (Zhongguo Dixia Jinrong Diaocha), he writes that private SMEs are the main link in a underground financing chain that sees unlicensed lenders charge exorbitant rates of interest.

SMEs contribute more than 60 percent of the country's gross domestic product growth, more than 50 percent of its tax revenue and more than 80 percent of urban jobs, said Bao Yujun, chairman of the Research Association on the Private Economy, an academic body jointly resourced by the United Front Work Department of Communist Party of China Central Committee, the Central Policy Research Office, State Administration for Industry and Commerce, All-China Federation of Industry and Commerce, Chinese Academy of Social Sciences, Development Research Center of the State Council and Peking University.

"Yet the financial challenges they face are not new they have simply been made tougher by the economic slowdown. The government should be looking at ways to help them develop given their essential role," he added.

Starved for CASH


(For more biz stories, please visit Industries)

   Previous page 1 2 Next Page  

主站蜘蛛池模板: 香蕉久久夜色精品国产尤物 | 狼人激情网 | 在线视频观看免费视频18 | 九九99九九在线精品视频 | 男女性关系视频免费观看软件 | 久久久久亚洲国产 | 国产v日韩v欧美v精品专区 | 久久国产首页 | 91免费视 | 亚洲深夜视频 | 男人精品一线视频在线观看 | 国产成人久久精品区一区二区 | 国产精品李雅在线观看 | 国产精品一级毛片不收费 | 久久视屏这里只有精品6国产 | 成人免费观看视频久爱网 | 91情国产l精品国产亚洲区 | 日本一级~片免费永久 | 色综合a怡红院怡红院首页 色综合精品久久久久久久 色综合九九 | 爆操巨乳美女 | 毛片在线播放网址 | 精品欧美一区二区三区在线 | 免费一区二区三区久久 | 亚洲欧美日韩另类在线 | 日本特黄aaaaaaa大片 | 亚洲一区二区精品视频 | 午夜黄色福利视频 | 爱爱毛片| 午夜免费福利网站 | 毛片国产 | 视频一区免费 | 精品久久久日韩精品成人 | 私人毛片免费高清影视院丶 | 99久久香蕉 | 国产亚洲自在精品久久 | 亚洲天堂色视频 | 三级网址在线 | 怡红院免费全部视频在线视频 | 国产在线一区二区三区四区 | 好看的看黄a大片爽爽影院 好男人天堂网 | 欧美一级专区免费大片俄罗斯 |