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    Zhejiang Releases Data: Rumours About Large Number Of Smes Going Bankrupt

    2008/7/23 0:00:00 50

    The survival situation of private enterprises under internal and external difficulties is worrying, so that the "private economy" province in Zhejiang has been focused recently.

    Yesterday, the statistics released by the Provincial Bureau of statistics showed that in the first half of the year, the province's economic operation was "generally stable", and GDP grew by 11.4% over the same period last year.

    Wang Chieh, a spokesman for the Zhejiang Provincial Bureau of statistics, denied that rumors of "a large number of SMEs in Zhejiang failed".

    Under the interweaving of multiple factors such as macroeconomic regulation and control, the pressure of survival of SMEs in Zhejiang is highlighted.

    Statistics from the provincial economic and Trade Commission show that in 1-5 months of this year, there were 1.07 loss making enterprises above Designated Size, with a deficit of 19.6%.

    And "Wenzhou 20% small and medium-sized enterprises stop production or half stop production", "Yiwu golden Wu group boss overseas to avoid debt" and other news, make Zhejiang "grass roots economy" fate to appear confused.

    The "semi annual report" data gave Zhejiang a reassurance.

    Statistics show that in the first half of this year, the gross domestic product of the province was 988 billion 900 million yuan, an increase of 3.3 percentage points lower than that of the same period last year, but it still increased by 11.4%, 1 percentage points higher than the national average. In the first half of the year, CPI rose 7.4%, 0.5 percentage points lower than the national average.

    The economic situation analysis meeting of the Standing Committee of the Zhejiang provincial Party committee held on the day before yesterday (21) gave an evaluation of "steady growth and positive change", and continued to move towards the direction of macro control expectation and development mode pformation.

    For the "small and medium-sized enterprises in Zhejiang a large number of failures" argument, Wang Chieh, a spokesman for the Provincial Bureau of statistics, responded that it was "inaccurate". "As far as I know, some small and medium-sized enterprises stop production and half stop production is a fact, but a lot of small and medium enterprises fail to expand the problem."

    He said that by the end of 6, there were more than 50 thousand industrial enterprises above Designated Size (sales income of more than 5 million) in Zhejiang, and 78.5 industrial enterprises below the scale.

    However, the days of private enterprises in Zhejiang are really bad.

    Data show that in the first half of this year, the proportion of the main business cost of the industrial enterprises above Designated Size in the province was 87.6%, an increase of 0.3 percentage points compared to the same period last year. In the two quarter, the entrepreneur confidence index and the business climate index were 122.4 and 131.5, down 22.7 and 23.3, respectively, lower than the average level of the whole country.

    "Small and medium-sized enterprises in Zhejiang are particularly sensitive to all previous macroeconomic regulation and control, and are even more affected." Wang Chieh said that the current difficulties of SMEs are related to the rising cost of production factors, the adjustment of export tax rebate policy, the subprime mortgage crisis in the United States, and the structural changes in domestic demand. "But I believe that SMEs can finally overcome difficulties."

    According to the briefing, Zhejiang has set the general idea of economic work in the second half of the year as "tackling both problems and stability", and will introduce a series of policies to save the market from financial support, technological pformation support, assistance from difficult enterprises and improvement of investment environment.

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