China Daily European Weekly : 2018-11-30

Comment : 12 : 12

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12 COMMENT EUROPEAN WEEKLY CHINA DAILY November 30-December 6, 2018 By YIN RUIZHE It is not only in China that banks are cautious about lending money to small and mediumsized companies. The difficulty of financing for private companies is common across the world. But China’s current situation is still worth pondering. S ince the beginning of this year, there have been a series of defaults in the credit debt market. Whether in volume or size, private companies are responsible for more than half of these defaults. Under this circumstance, bond market investors are reluctant to lend money to private companies, and some institutions even try to avoid it. It is not only that it is difficult for private companies to get financing in the bond market, but also from other financial channels. To be honest, it is not only in China that banks are cautious about lending money to small and medium-sized companies. The difficulty of financing for private companies is common across the world. But China’s current situation is still worth pondering, and there are mainly two reasons for this phenomenon. PRINTED AND DISTRIBUTED BY PRESSREADER PressReader.com +1 604 278 4604 ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY COPYRIGHT AND PROTECTED BY APPLICABLE LAW

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