China Daily (Latin America Weekly) : 2018-11-26
8 Comment Editorial • Opinion : 8 : 8
8 Comment Editorial • Opinion
8 Monday-Sunday, November 26 - December 2, 2018 COMMENT EDITORIAL • OPINION China Daily Latin America Weekly chinadailyusa.com Luo Jie Pilot program for painless labor WHAT THEY SAY New channels, creative financing modes can help private enterprises Editor’s note: expressed its firm support for the development of private enterprises, especially small-and medium-sized ones at a symposium for entrepreneurs on Nov 1, many supportive policies have been introduced. Gmw.cn comments: SINCE THE TOP LEADERSHIP Of these, the policies related to financial support are the most attractive. Over the past several years, many private enterprises have faced difficulties getting bank loans. According to data, private enterprises account for about 60 percent of the national economy, yet the loans they get from commercial banks account for only 20 percent of the total.
That is why the recent move of several commercial banks to simplify the loan procedures for private enterprises was welcomed. However, merely simplifying loan procedures for private enterprises to get loans is not enough because the loan threshold is still very high. Besides, the total amount of loans remains the same, so many private enterprises are still unable to get the loans they need.
More creative measures must be taken to help private enterprises. Maybe they could learn from the Shenzhen Stock Exchange, which approved meituan.com to issue 5 billion yuan ($7.2 billion) as asset backed securitization loans. The first round of 500 million yuan will be used as low-cost loans for private enterprises, especially SMEs.
That kind of financing, as its name shows, allows a company to raise funds and get loans using its assets as a security. In that way, not only are the financing channels expanded, but also procedures such as credit reviews are avoided.
On Wednesday, the China Trustee Association issued a report, which shows that the total amount of asset backed securitization loans issued in 2017 reached 83.7 billion yuan. The mode has great potential to provide support to private enterprises, especially SMEs.
Besides the above-mentioned asset backed securitization loans, commercial banks can also take other creative financing measures to support private enterprises. Only with the joint efforts of all will the private economy prosper. If you want to get even closer, follow on Facebook CONTACT US China Daily China Daily UK 15 Huixin Dongjie, Chaoyang, Beijing 100029 +86 (0) 10 6491-8366; [email protected] 90 Cannon Street, London EC4N 6HA © 2016 China Daily All Rights Reserved
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