Pearl River Delta 58 Thousand Port Enterprises Down 15 Thousand

How much is the number of enterprises in the Pearl River Delta who are facing difficulties?

Yesterday, Hongkong media quoted Sun Qilie, vice chairman of the Hongkong Federation of industries, as saying that there were originally 58 thousand Hong Kong processing enterprises in the Pearl River Delta region, but about 15 thousand have lost contact.

He believes that the trend of collapse of Hong Kong enterprises in the mainland will continue.

The Hongkong monetary authority once again made efforts to promote bank loans. Yesterday, in order to create a more relaxed credit environment for SMEs, the Hongkong monetary authority once again made moves.

Yesterday, the HKMA launched two optimization arrangements, including extending the maximum term of secured loan with maturity from 1 months to 3 months, and adjusting the interest rate of the scheduled loan arrangement to lower the level of interbank offered rate in the same period.

In addition, the HKMA injected another HK $3 billion 875 million into the market the night before.

Ren Zhigang, President of the HKMA, said the arrangements came into effect in real time and lasted until the end of March 2009.

Ren Zhigang said the optimization measures are to provide a loose monetary environment for banks and Hongkong, and hope to penetrate into the retail and corporate level, making it easier for industries to borrow.

He said there could be a vicious circle of credit strained and economic downturn.

He hoped that banks could consider this and avoid a vicious circle and support Hongkong's economy.

He appealed to banks to fulfill the important responsibility of financing channels so that all businesses could continue to operate normally.

The bank can relax credit to SMEs, increase its commitment to enterprises, and help SMEs get rid of the miserable situation of business difficulties.

Sun Qilie also hoped that the government and the HKMA would make regulations on the percentage of bank loans to SMEs.

(20%) small and medium enterprises (SMEs) have called banks to tighten credit. However, for the action of the HKMA, Li Huangtian, chairman of the Hongkong SME Federation, thinks that it has little effect.

He said that the right to approve loans is in the hands of banks, and that the government only undertakes the maximum amount of credit guarantees for SMEs.

He suggested that the government increase the amount of credit to 70% to 80%, reduce the risk of banks, thereby enabling SMEs to obtain loans.

Li Huangtian added that the mainland labor contract law has made it more difficult for Hong Kong funded SMEs to operate. He hoped that the government would help pform the troubled Hong Kong enterprises.

Sun Qilie, vice president of the Federation of industries, expressed support for the HKMA's measures.

But he also believes that the government and the HKMA should require banks to be flexible in approving SME loans.

He said that 20% of SMEs in Hongkong indicated that banks had tightened credit and sought assistance from the general industry.