Where Private Interest Rates Soar And Where Are Smes?

Recently, the private lending market is just like the weather in summer.

"Recently, we have received more than 20% telephone calls from consulting businesses every day. The volume of business has increased by about a year."

Gu Gu, manager of Qingdao five color soil Investment Consulting Co., Ltd. told the China national classics news reporter.

"Five colored soil" is the first company specializing in private mortgage business in China.

Gu told reporters that he expects the volume of business to increase in the second half of the year.

Gu manager's case is not a special case.

Wang Weiqi, deputy general manager of star small loan company in Jiaojiang District, Taizhou, Zhejiang, also said, "at present, we have already borrowed 70 million.

The remaining funds are not loans, but we are choosing customers.

It is understood that since March, Qingdao, Wenzhou, Guangzhou and many other places of private lending business has increased significantly.

It is worth noting that with the increase in borrowing demand, lending rates have also risen.

Wang Weiqi predicted that "3% of the monthly interest may not last too long.

Because as liquidity continues to tighten, more and more people will be short of money.

Once the situation of supply exceeds demand, interest rates will increase rapidly.

According to the state regulations, the maximum interest rate of micro credit should be 4 times the interest rate of the bank loan (short-term loan monthly interest rate is 1.62%).

However, this "red line" does not seem to work for increasingly popular private lending.

According to relevant media reports, the monthly interest rate of private lending in coastal cities such as Guangzhou has reached 5%-10% in March, with an annual interest rate of 50%-60%, while surveys in Shenzhen and other places even show an annual interest rate of 100%.

Behind the soaring interest rate of private lending, it seems to the industry that the supply and demand relationship of funds at this stage reflects.

Yang Yiqing, executive director of Zhejiang Business Research Association, said: "private capital really has unparalleled sensitivity.

From the point of view of the phenomenon, they have felt the tightening of market liquidity.

Although the interest rate of private lending has gradually increased, it will take some time, but the general direction is clearer.

Next, money will become tighter.

The latest figures released by the National Bureau of statistics have increased this expectation again.

In April, CPI rose to a new high in 18 months, approaching the inflation warning line.

Economists expect that more stringent measures will be introduced after the central bank raises the deposit reserve ratio, such as raising interest rates.

"According to past experience, macro policy is tight, and once capital becomes a scarce commodity in the market, small and medium-sized enterprises will often be" regulated out "first.

Zeng Shui Liang, an expert in the center for private enterprise research of the Yangtze River Delta Research Institute of Tsinghua University, told the "China made news" reporter that under the condition of insufficient funds, banks were more inclined to large enterprises with good credit qualifications because of their consideration of commercial profits.

But with the improvement of the economy, many small and medium-sized enterprises now need financial support, so they can only turn to the private lending market.

In fact, after the two increase in the deposit reserve ratio at the beginning of the year, the proportion of large state-owned banks' loans to small businesses has declined.

A sample survey conducted by the central bank in March on 5000 small businesses showed that this year, from the perspective of new loans, the proportion of new loans for small businesses accounted for 19.7% of all enterprises' new loans at the end of 1, which was 5.2 percentage points lower than the beginning of the year.

Analysts pointed out that with the third increase in the central bank's reserve ratio from 0.5 percentage point to 17% in May 10th, the closer the environment of funds will make bank loans more "less expensive".

Under the dual attack of tight monetary policy and capacity expansion, SMEs once again suffered from "ischemia", and private lending began to "provide timely help."

But on the other side of the coin, the risk is also aggravating.

Ma Hongman, a well-known financial commentator, reminds us that excessive private lending costs will also retard the pace of growth of enterprises.

Zeng Shui Liang also told reporters that "private financing and joint guarantee" can occasionally help enterprises survive the period of shortage of funds, but more often than not, they are drinking poison to quench thirst.

Financing interest rates are getting higher and higher, and many enterprises will be overburdened.

"Private lending market is now booming, perhaps more like a warning". Ma Hongman pointed out that the financing difficulties of SMEs in China have existed for a long time, but the effective solutions have not yet been formed and the vitality of enterprises has been damaged.

This is the institutional root that led to monetary policy adjustment "accidentally injure" the private economy.

He warned that before resolving the chronic maladies of market misplacement in small and medium enterprises, any credit control measures must take into account their negative injuries comprehensively, so as to prevent the market economy from being hit unreasonably.