In The Pearl River Delta, It Will Be More Than Ten Thousand Hong Kong Enterprises.

After the summit of SMEs, Liu Wuhuilan, director of Hongkong business and Economic Development Bureau, appealed to financial enterprises to lend to SMEs. Under the background of financial tsunami, Hongkong financial institutions generally grudges loans, resulting in cash flow difficulties for most Hong Kong enterprises.

Yesterday morning, Hongkong's industry and Commerce appealed to the government to put pressure on banks to save Hong Kong enterprises.

Chen Zhenren, President of Hongkong Federation of industry, said that if the situation of credit crunch persists, there may be 1/4 closure in 70000 PRD enterprises.

The industrial and commercial circles have sought to solve the plight of the Hong Kong government and hit by the global financial tsunami. The Hongkong banking interface is facing great difficulties. The government has successively produced lots of huge sums of money to help the troubled Hongkong banking sector.

At the same time, due to the global economic downturn, the banking sector in Hongkong has tightened their monetary policy and urged enterprises to repay loans. Meanwhile, they refused to continue issuing new loans to Hong Kong enterprises, resulting in difficulties in cash flow for many Hong Kong enterprises.

To solve the clash between the banking industry and the industrial and commercial circles, the five major chambers of Commerce in Hongkong, the chamber of Commerce of small and medium-sized enterprises, representatives of the industry and a number of members of the Legislative Council gathered in Hongkong government offices yesterday to hold the "SME summit" with the director of the commerce and Economic Development Bureau, Liu Wuhuilan.

After the meeting, Wu Huilan said that the meeting was mainly aimed at hearing the problems faced by the industry and how the government, industry and members could work together to help SMEs overcome the difficulties.

Liu Wuhuilan said that the government will introduce a series of measures, including the flexible use of credit guarantee schemes set up for small and medium-sized enterprises and the expansion of the fund for marketing promotion.

Mr Wu Huilan said that the government may set up a task force to study and follow up the views put forward at the meeting.

"No more efforts will be made for Hong Kong enterprises to go bankrupt".

Chen Zhenren, President of the Hongkong Federation of industry, said that it is urgent to help Hong Kong enterprises to extricate themselves from their plight. If they fail to do so, they will lead to the closure of the Hong Kong enterprises which should not have failed.

Chen Zhenren predicts that if the banking sector does not relax lending restrictions, the 1/4 of 70000 Hong Kong funded enterprises in the PRD will be closed at the end of the year, and the 70000 factories employ more than 10 million workers in the Pearl River Delta.

1/4 factory closure will trigger unemployment.

Chen Zhenren analysis said that in these 70000 factories, the weak port enterprises that produce low end, low price and labor intensive products will be the first to go bankrupt.