Financial Policy Is Heating Up, Service Enterprises Financing Waiting For Sunshine

Just as the news of the central easing of money was loaded with newspapers, Mr. Wang, head of an export garment enterprise in Dalian, once again hit the wall.

Mr. Wang's company has been operating steadily for many years, but he was euphemistically rejected by the credit manager of the bank.

According to the credit manager, "because Mr. Wang's industry is traditional industries, and enterprises are export-oriented enterprises, banks should carefully consider their financing needs."

Recently, the state has introduced ten economic measures to expand domestic demand in the near future, and decided to implement a proactive fiscal policy and moderately loose monetary policy, thus greatly enhancing the confidence of the textile industry and enterprises.

The executive meeting of the State Council, which was held recently, further studied and determined 6 policy measures to promote the healthy development of the textile industry, including encouraging and guiding financial institutions to increase financial support and effectively solve the financing difficulties of textile and small and medium enterprises.

Mr. Wang's rejection experience shows that although the national rescue policy is strong, the current market environment of enterprises is still very grim.

The industry analysis and pointed out that the policy from publication to pmission to the industrial economic chain has a pitional period of 3-6 months.

It is a matter of life and death for a small and medium-sized enterprise struggling with difficulties.

Since the end of 2007, since the implementation of the tight monetary policy, banks in various parts of the country have tightened their credit scale, resulting in tight cash flow in the eastern coastal garment enterprises.

Today, although the country proposes to implement "moderately loose" monetary policy and increase credit to stimulate economic recovery, it is understood by reporters that the financial difficulties of most garment enterprises have not yet been alleviated.

In November 24th, Zhao Linzhong, chairman of the National People's Congress and chairman of the board of directors of Fu run Holdings Group, sent a proposal on the development of the textile industry from Zhejiang to the Standing Committee of the National People's Congress.

Zhao Linzhong said in the "proposal" that although the national policy has boosted the confidence of the textile industry, the difficulties of the industry will not be so fast, and there are many specific difficulties to be solved.

At present, the six measures introduced in November 19th, in addition to expanding domestic demand, can only alleviate the pressure on the industry, and the situation in the future is still grim.

"From the end of last year, the funding problem has become the most serious problem encountered by the textile and garment industry.

It is difficult for textile enterprises to get loans from banks, and only through other financing channels to raise funds and maintain production, but the cost of financing is much higher than the cost of bank loans.

Zhao Linzhong pointed out in the proposal that the state related lending policy, though giving small and medium-sized enterprises a certain amount of funds, is not clear how to do it in detail.

Dai Minghua, chairman of the Shanshan securities company, also looks forward to specific measures to be issued. "This series of policies is only put forward in a macro way, and the details are not clear enough, so we can not determine how much benefits can be brought to SMEs, such as how to solve the financing difficulties, and what type of enterprises can reach the standard of government support."

He believes that if specific measures are introduced, it is still difficult for financial institutions to embrace the garment enterprises.

It is undeniable that financial institutions generally believe that textile and clothing is a traditional industry with excess capacity, and some banks even put it in the sunset industry.

An employee of China Minsheng Bank's credit business department said that although loans to small and medium sized enterprises do not have clear restrictions on the industry, it is necessary to assess the performance of enterprises. Textile and garment industry is a small profit industry, and it is hard to get support.

"Under the macro control of tight monetary policy, banks have been strictly controlling the credit for the textile and garment industry.

After moderately loose monetary policy, the bank's loan to textile and garment enterprises is still not relaxed.

The source also revealed that in addition to the industrial factors, banks are also sensitive to loans from enterprises in some areas.

Especially in the Pearl River Delta region, a large number of export enterprises and OEM enterprises fail to give banks a lot of pressure.

At present, the bad rate of loans in the Yangtze River Delta region has also increased.

A central bank insider told reporters that the downward trend of the current economy, such as real estate, steel, textile and other industries credit risk began to accumulate, so even if monetary policy easing, commercial banks lending behavior will be very prudent.

From the direction of future loans, banks may be more keen on projects involving central or local governments, or large listed companies in the industry to ensure minimum risk.

Liang Weihao, chairman of the Dongguan Association of foreign investment enterprises, sent a letter to the bank, suggesting that the financial institutions and banks should not be "one size fits all". They can take flexible measures from reality and release the quality enterprises in the textile and garment industry to help enterprises get through the temporary financial cold winter, but there are few responses.

"For the labor-intensive clothing enterprises, there is a general shortage of capital and liquidity."

Sun Huaibin, director of the China Textile Economic Research Center, said that at present, many garment enterprises in China are closed down or closed down because of the broken capital chain, which is a huge loss to the entire garment industry.

The sunshine is always in the wind and rain. Obviously, the problem of capital and credit is related to the survival of enterprises. It is a major problem that needs to be solved urgently.

However, in the course of the interview, reporters learned that a series of "rescue markets" policies were issued by the government. Industry leaders and business representatives were all confident of the future prospects. They also believed that with the gradual implementation of policies and the liberalization of financial institutions' credit scale, business difficulties would be solved effectively.

In the face of the new market environment, the national monetary policy used the "loose" statement for the first time for the first time in more than ten years. It shows that the state's monetary supply orientation has changed greatly. It is beneficial to maintain the safe and stable operation of our economic and financial markets. It is a good news for the textile and clothing industry which has been affected by the financial crisis.

When reporters interviewed some of the heads of textile and garment enterprises in China, they all affirmed that after the introduction of relatively loose monetary policy, the textile and garment industry will continue to shoulder heavy responsibilities in the country's expectation of further expanding domestic demand and promoting steady economic growth, and it also brings good development opportunities to enterprises.

"In the ten major measures introduced by the state, it is clear that we should increase financial support for economic growth and expand the credit scale reasonably."

Sun Huaibin said.

However, after a series of positive policies, the management of garment enterprises has not been improved.

The above economic experts pointed out that in general, the policy from publication to conduction is not effective in a short time.

Sun Huaibin also said that the problems facing the textile and garment industry, such as capital difficulties, orders reduction and market demand decline, will continue for some time. This period is precisely the most difficult period for the industry, and enterprises need to strengthen their physique.

Now, when banks listen to projects, loans are tightened. Even for good projects, banks not only give loans but also lend money.

Many enterprises this year are because banks do not have blood pfusions, and business capital collapses.

The financial policies promulgated by the state are very good, but how long will it take to really implement them?

This is not in everyone's mind.

A man in charge of a men's clothing company in Xiamen expressed this concern.

Shantou Bao Ya Garments Co., Ltd. is a home garment company which mainly exports to Europe and the United States. Due to the quality of products and credit, the overseas orders are constantly coming. General manager Wang Zhipeng is afraid to take orders. Because the pressure of capital flow is too great, buyers should shorten the delivery cycle, and the risk is considerable.

"The state has proposed to increase support for light textile industry and expand the loan scale of state-owned commercial banks to small and medium-sized enterprises.

But financing policies need time to pmit to enterprises.

In this process, if cash flow problems, it is likely to lead to enterprise failure.

Wang Zhipeng believes that under the situation of economic turbulence and industry downturn, it is most important to stabilize the smooth cash flow.

However, he told reporters that he hoped that the relevant credit policies would be implemented as soon as possible and that SMEs would benefit as soon as possible.

Zhang Ping, a Hong Kong businessman who does business in Dongguan, reflects that, because there is no physical collateral such as factory buildings, it is very difficult for Hong Kong funded enterprises to invest in garment manufacturers in the mainland to obtain loans from mainland banks. However, with the gradual liberalization of the mainland credit scale, he is considering applying for loans in March and April next year. "I do not know if there is any hope."

"As an industry organization, it is hoped that through the implementation of policy initiatives at all levels of financial institutions, China's garment enterprises can get a real monetary guarantee in moderately loose monetary policy."

Sun Huaibin said that the association is actively exploring new ways to jointly guarantee credit guarantees for small and medium-sized garment enterprises with local governments.

Sun Huaibin also pointed out that in order to get out of the difficult situation completely, in addition to macroeconomic policy assistance, we must rely on both government support and enterprise's own efforts.

Economic experts also predict that under the pulling of a series of loose policies, the garment enterprises will be able to tap new economic growth points and further upgrade the industry.

Yang Jing: editor in charge