中文简体 | 中文繁体
 

                  (Source: China Daily2012-03-02) 

SHANGHAI - Small and microenterprises, a key engine driving the growth of the Chinese economy, may receive more financial support as the central government takes measures to solve their capital shortage.

 On Monday, Guo Shuqing, chairman of China Securities Regulatory Commission, said in an interview with the People’s Daily that the commission is working to make it easier for small and medium-sized enterprises (SMEs) to offer debt. Guo added that the government will keep building a “multi-level capital market”, offering different financing channels for different enterprises. Guo’s comments send a positive signal to millions of private businesses in China where many SMEs cannot stay afloat because of capital shortage amid tightening policies last year, experts say.

“It is just a matter of time with regard to the legalization of private lending, and that should just be one of the multiple choices for entrepreneurs around the country to sustain their businesses,” said Zhou Dewen, chairman of Wenzhou SME Development Association.

Zhou said he hoped his proposal that private lending should be legalized would be taken into consideration during the forthcoming annual session of the National People’s CongressChina’s top legislature.

According to a report about micro enterprises, which are defined as enterprises each with an annual turnover of less than 30 million yuan (4.8 million), 43 percent of the interviewed enterprises in Central China said they were “nagged” by a capital shortage. More than half of the businesspeople in the Pearl River Delta have never been on loan. While in the Yangtze River Delta, where private lending is popular, borrowing money from acquaintances and friends still ranked first as the most sought-after channel for small businesses to get funds. “They may look like trivial issues at first glance,” said Wang Tong, marketing director of Alibaba Finance, which compiled the report with Peking University. “But after deep research, or perhaps just a second look, you will find that micro enterprises create most of the country’s jobs.”

Since 2011, Alibaba has helped fund 76.3 million small and micro enterprises registered on Alibaba, the country’s largest e-commerce site. The loans require no mortgage and the lending rate is “low”. By the end of 2011, nearly 100,000 enterprises had received loans totaling 15.4billion yuan through Alibaba.

A number of policies have been introduced by central and local governments to help as well. QingdaoShandong province, for example, issued an order on Wednesday banning local commercial banks from charging administrative fees and encouraging college graduates to work for micro enterprises. In Shanghai, similarly, the city’s industry and commerce administration canceled the annual administrative fee levied on micro enterprises this year.

(Edited By: China West Lawyer)

  • > Italian Authorities File 30 Complaints Over Fake Brands
  • > Attorney Zhao Junxin Invited by Ministry of Commerce of China to Participate in Promoting Policy Seminars on Cross-border Investment and Infrastructure Construction
  • > Second Round Negotiation on China-Switzerland FTA Held in Xi’an
  • > China Rejects Japan’s Rail Patents Claims
  • > China’s Court Cases of 2013
  • > China Pledges Strictness to Software Intellectual Property Protection in Central Government
  • > China Steps Up Crackdown on Online Copyright Infringements and Counterfeiting
  • > CSRC Tightens Rules On Acquisitions
  • > China: New Rules to Restrict Foreigners’ Ownership of Homes
  • > Funds A Problem For Small Businesses
  • > CSRC Chairman Calls for ‘Rational Investment’
  • > Major Revisions to the Criminal Procedure Law In Line With Times
  • > China court rejects damages plea from man jailed for Bo joke
  • > Foreigners Face Visa Scrutiny
  • > Foreigners Receiving More Legal Support
  • > Yuan Settlements Gain Favor With Exporters
  • > China’s Growth Continues Slowdown, More Policy Support Be seen
  • > China Suspended Officials in Forced-Abortion Case
  • > Participated in by Attorney Zhao Junxi the Symposium on International Commerce Arbitration
  • > China to Hold Gu Kailai Murder Trial on Aug. 9: Sources
  • > Details of the Trials of Wang Lijun
  • > China To Crack Down On “Malicious” Trademark Registrations
  • > Newly-amended Criminal Procedure Law As Well As Its Interpretation Released To Take Effect
  • > Regulation Issued to Protect Detainees’ Rights
  • > Participation in Seminar on Sino-US Legal Exchange 2010 by Attorney Zhao
  • Contact Us

    If you need legal service or consulting, You can also contact us directly by the ways below: 

    Attorney Zhao Junxi (Seaer Zhao)
    Grandall Law Firm
    Address: 
    Beijing Office: 9th Floor, Taikang Financial Tower, No. 38 North Road East Third Ring, Chaoyang District, Beijing, P.R.C
    Chengdu Office: 9/F, Building 26, Boundary-Freeland Center, No. 269, Tianfu 2 St., Hi-Tech Zone, Chengdu CitySichuan Province, P.R.C 610095
    Cell Phone: (+86)18982170437
                          (+86)13881816953
    E-mail: zjunxi@gmail.com (Abroad)
                 742042577@qq.com (Home) 
     
     
     

     

    Disclaimer |  Privacy |  Contact Us |   contentFormat[23]
    Copyright@ 2003-2011 China West Lawyer  www.cwlawyer.comm,All Rights Reserved  蜀ICP备[6024258]号
    Zip: Tel:    Adsense statistics