The most tangled and difficult year for SMEs in China

According to China’s official survey, the poor environment coupled with ** difficulties, the overall profit of Chinese SMEs is less than 3%, and nearly 70% are facing business crisis. The State Council of China is ready to launch policy measures to support the development of SMEs.

Shanghai Securities News reported that the Ministry of Industry and Information Technology of the People's Republic of China released on the 9th "2011 Summer Report on the Operation of China's Industrial Economy". The report shows that from January to July this year, large-scale enterprises operate in good condition, but SMEs have difficulties in operating and overall profits are less than 3%.

The losses of most loss-making enterprises have also continued to increase this year. The losses from January to February this year increased by 22.2%, from January to June by 41.6%. From January to July, they further increased to 46.9%. China is facing a drastic collapse of its business. crisis.

The report quoted Yu Shengzhi, member of the Standing Committee of the National People's Republic of China, as saying that multiple unfavorable factors have contributed to "2011 becoming the most tangled and difficult year for SMEs."

Yu Shengzhi stated that the difficulties of SMEs are mainly due to "financing difficulties." According to statistics, only about 10% of SMEs can get from the formal banking system.

Therefore, although the annual interest rate of private lending is as high as 120%, private financing is still in short supply. However, the lack of supervision of private lending and the high interest rates have made the economic market potentially a huge risk of debt collapse.

According to the report, currently 6 to 70% of companies are facing serious difficulties in their lives. The Ministry of Industry and Information Technology will develop relevant supporting policies to encourage and guide private investment to support SMEs; at the same time, the State Council Leading Group Meeting on the Promotion of Small and Medium-sized Enterprises Development will also be held. At that time, there will be policies and measures to support the development of SMEs.

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