VDO of Usury Destroys SME in China
After we tend to got the knowledge about Annual Credit Report ago VDO, we'll explore the Usury Destroys SME in China. I urge everybody to use judgment in the audience. A recent survey found that I actually have encounter Usury Destroys SME in China. I saw that it absolutely was important for them to be printed. If any errors. I apologize. If you do not want to publish VDO. i am pleased to be here. Thanks for an excellent VDO. Usury Destroys SME in China Video Clips. Duration : 3.22 Mins.Follow us on TWITTER: twitter.com Like us on FACEBOOK: www.facebook.com In order to control inflation, the Chinese Communist Party (CCP) increased control on lending, resulting in many small business unable to obtain any loans. More and more small businesses turned to the black market. According to an estimate, there will be 40% of mid to small businesses slowing production, stopping production, or even going bankrupt. Rich corporations earn money from giving high interest loans instead of doing everyday business. Experts say China is facing a new round of economic crisis. Mainland China's stock exchange filing shows, from Jan. to Aug. 2011, 40 listed companies gave out 8 billion yuan in entrusted loans. This included corporations' interest as high as 24.5%, equivalent to 4 times the annual benchmark loan rate. One corporation's half yearly profit relies on 85% of loan interest. Shandong Textile Equipment Factory director Mr Luan said, his company can only survive on loans. Mr. Luan: "we need loans from friends and relatives from the village." In China, direct lending of funds between enterprises is strictly prohibited. However, corporations can sign out entrusted loans to borrowers through the bank. Interest rates are determined by the commissioning party. Banks act as intermediaries. According to The Wall Street Journal, Sunny Loan Top Co.'s performance report shows, from January to June 2011, the entrusted loans accounts for 55.5 million Yuan profit. It also accounts ...
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