The Central Bank Continued To Raise Interest Rates By &Nbsp; Wenzhou's Small And Medium-Sized Shoe Companies Were Hanging Ahead.

In March 8th, we reviewed the performance of last year, and some of the leaders of a shoe enterprise in Wenzhou said that Wenzhou enterprises made money last year, but the main source is not manufacturing enterprises.

Sales have gone up, but profits have dropped significantly. The revaluation has increased significantly over the past years, and the profit is not as good as a year.

At the same time, Lao Cheng is also a partner of an underground Guarantee Corporation, mainly engaged in private interest lending.

In Wenzhou, the phenomenon of usury under the banner of Guarantee Corporation is very common.

Old Cheng estimates that the city has at least 1000 Guarantee corporation with no license and no license, and its operating capital is more than 20 billion yuan. "Usury" became the most profitable Wenzhou last year.

In the first month of the lunar year, Lao Cheng shuttle to a restaurant and a tea party to have dinner with some friends and family.

During the dinner, some business owners talked more about how much money they made in usury last year, and the houses they invested are now priced at tens of millions, but rarely talk about business operations.

Lao Cheng said that the unprofitable enterprises have become the face works of some Wenzhou bosses. They have made great efforts to make big money in real estate and usury.

There is no family at home. These businesses can earn money from usury. This shows that there are many shoes in China.

Excessive contraction of credit, the first to bear the brunt will be small and medium-sized enterprises.

In February 9, 2011, when the central bank announced a 0.25 percentage point increase in the benchmark interest rate for one-year lending and lending of financial institutions, the announcement of the first interest rate increase in 2011 opened a prelude to further tightening the monetary policy of the Central Bank of China.

According to a commentary published on Thursday by China Securities Daily, China is likely to raise the deposit reserve ratio in the near future to ease liquidity pressure after the latest figures show that the scale of foreign capital inflow has increased significantly in January.

According to the data released by China's central bank on Wednesday, in January this year, financial institutions increased their foreign exchange reserves by RMB 501 billion 600 million yuan, which was 403 billion 300 million yuan in December last year.

Since January 2009, China has raised the deposit reserve rate for the eight time, and has increased by 4 percentage points. The aim is to return excess liquidity and curb inflation.

On Friday, the China Securities Journal quoted an unnamed source as saying that the new loans of the Chinese banking sector in February were below 600 billion yuan (US $91 billion 300 million), far below the 1 trillion and 40 billion yuan in January.

The report said that the decline in new loans in February showed that a series of tightening measures adopted by the Central Bank of China have played a role in containing the expansion of domestic credit.

It can be expected that the tight cycle of monetary policy will continue, and interest rates will come again, which makes the small and medium-sized foreign trade enterprises that have just recovered from the financial crisis very worried.

The increase in lending rates is undoubtedly bad news for the shoe industry.

The industry believes that the continued increase in interest rates will inevitably increase the cost pressure of foreign shoe enterprises, compressing profit margins.

However, the effect of interest rate increase is gradual. Shoe enterprises should seize the time to develop business channels, develop new customers and shorten the capital chain.

In the long run, the pformation of traditional foreign shoe enterprises to comprehensive foreign trade enterprises is imperative.

The rise of labor costs and rising prices of raw materials have made many foreign trade enterprises go on thin ice, and the tightening of money and the increase of loan interest rates mean more difficulties for SMEs.

Continuous interest rate increase will increase the loan cost of enterprises, increase interest expense and other financial expenses, and then increase operating costs.

On the other hand, the interest rate increase will further promote the appreciation of the renminbi.

Ma Guangyuan, a researcher at the Venture Capital Research Institute of Peking University, pointed out that after the financial crisis, the foundation for the recovery of many small and medium enterprises in China is still not strong enough. If excessive credit is contracted, the SMEs will bear the brunt.