Small and medium enterprises in China have no access to credit By " La Recontra Oferta Newspaper " LRON at San Jose, CA US 17:01PM 08.12.2013 Ms. Dai Jinlian has created more than 200 jobs for people who collect tea leaves in Zhejiang. It was not enough to get a loan from the state banking system país.Pequeñas and medium enterprises in China do not have access to credit in, the image of some 100 yuan notes. Photo: Reuters British asset manager shares the dream of tycoons acquire Chilean banks U.S. Authorities JPMorgan accused of manipulating prices in energy markets in Brazil Private Banks 5000 employees laid off in the first half Bank of America makes a profit of U.S. $ 5,495 million in the first half SHANGHAI More International Banking. - Since 2008, Dai Jinlian has created more than 200 jobs for people who collect tea leaves in the Chinese province of Zhejiang. It was not enough to get a loan from the state banking system of the country. This grandmother of 65, who could not qualify for a loan of 40,000 yuan (U.S. $ 6,500) in 2009, depends on changes of its earnings to finance an activity that began with 300,000 yuan of savings. "The banks send flowers if you are rich, but even if they look poor," said Dai, who sells tea bags "Mother Dai" in local stores. The fact that Dai is unable to obtain funding highlights the plight of small businesses in China, which have been overlooked in the frenzy credit of four years and a half he lived the country despite representing 60% of production economic and 80% of jobs. Last month, the elimination of a floor on lending rates of banks-the most significant financial reform since the premier Li Keqiang took office in March, could provide a little relief. "If anyone will get an immediate benefit from the fee reform, large SOEs are already flooded with liquidity," said Tang Jianwei, a Shanghai-based economist at Bank of Communications Co. "Small businesses support the weight of the slowdown in China. " The economy will likely grow 7.5% in 2013, the slowest pace in 23 years, according to the median estimate of economists surveyed by Bloomberg News last month, while Li increases the role of markets in the midst of a restructuring aimed at reducing Chinese dependence on exports and infrastructure spending. Credit Frenzy In late 2008 both policy makers put the unprecedented sum of $ 6.2 billion bank credit available to state enterprises and local governments, 42 million small and medium enterprises in China have had to rely on more expensive credit from friends, family, pawn shops and underground lenders. Bankruptcies and defaults advance loans in Zhejiang, a region south of Shanghai that houses many of the largest private companies in the country. Access to capital markets remains limited amidst a freeze of nearly 10 months of initial public offerings and a bond market that is open primarily to larger companies. Bank of China, which has set a loan rate to a 6% year eliminated the maximum discount of 30% that banks can offer privileged debtors, effective July 20. The measure aimed to make loan rates more competitive and reduce borrowing costs of companies, said in a statement on July 19. With that, lenders may be more subject to pressure from its largest debtor-state companies that have access to alternative financing markets stocks and bonds to reduce lending rates, according to economist Wang Tao of UBS AG. Banks will try to offset their profits charge more on loans to smaller companies, Wang said in a note dated July 20.
Posted on: Tue, 13 Aug 2013 00:02:44 +0000