SME Credit Crisis Or Usher In A New Buffer Period

From factory semi shutdown, shutdown to bankruptcy, from the boss of the enterprise

From November 1st, the detailed rules for the implementation of the Provisional Regulations on value added tax in People's Republic of China and People's Republic of China

Insiders said that adjusting taxes would help boost enterprises.

Burden reduction for SMEs

The purpose of adjusting these tax policies is to support the development of small and micro enterprises, and to regulate the financing difficulties of small and micro enterprises. It is an encouraging measure and has some help. However, single measures can not solve the problem and need to cooperate with other measures.

The heavy tax burden has been regarded as an important reason for the development of small and medium-sized enterprises.

Ye Jianping, chairman of Wenzhou Bai Xian de Clothing Co., Ltd., at Wen Jiabao's research seminar in Wenzhou, once said, "can we reduce taxes on SMEs?"

Premier Wen Jiabao, who chaired the executive session of the State Council in early October, said he would increase tax support for small and micro enterprises and raise their value added tax and business tax threshold.

A few days later, the Executive Council of the State Council decided to carry out a pilot project to deepen the reform of value-added tax system from January 1st next year, and take the lead in pilot projects in Shanghai's pportation and some modern service industries.

A series of encouraging measures have seen most enterprises see a ray of sunshine, but the industry believes that raising the value added tax and business tax threshold is mainly applicable to individuals.

Xue Shengwen, senior researcher of CIC, said in an interview with reporters that the starting points of these two taxes are aimed at small scale taxpayers. They can lighten the tax burden of small and micro enterprises to a certain extent and alleviate their survival crisis, but they do not play a big role in getting rid of the predicament of medium-sized enterprises.

"Tax cuts will help the small and medium-sized businesses such as commerce, retail, catering and tourism."

"Although it is widely applied to individuals, enterprises are mainly composed of individuals, which creates a favorable tax environment, can reduce the cost of small and medium-sized owners, will play a positive role in SMEs, and increase enterprise confidence."

Zhou Dewen told reporters.

It is worth mentioning that some of the bosses feel anxious because of the lag in policy implementation.

Zhu Yi, a leather goods company in Wenzhou, bluntly pointed out that the implementation of the national policy is relatively slow and the process is rather long. Now it is the most difficult period for small and medium-sized enterprises, and it is hoped that the corresponding policies can be implemented as soon as possible to enterprises.

In fact, Zhou Dewen regretted that "if these good policies are introduced in the first half of this year, then half of the enterprises will be greatly reduced, and they will not spread to the present situation."

Zhou Dewen said, "at present, a large number of semi stoppages, stoppages and failures have been checked, but the contradictions have not been reduced. For example, tax system, investment and financing problems have not changed fundamentally.

However, if the corresponding support measures are not released as soon as possible, there will be a considerable number of semi stoppage, stoppage and closure in February next year.

Zhou Dewen once again issued an early warning.

Zhou Dewen's prophecy has been confirmed, and the collapse and credit crisis of SMEs will appear.

Wenzhou footwear industry boss said that in Wenzhou, the labor cost of making shoes increased by more than 20% over last year; the average electricity consumption per pair of shoes reached 1.5 yuan, up by 0.5 yuan; the annual interest rate of corporate credit reached 12%, the credit interest expense doubled over the previous year, and the purchase price of raw materials increased by 8.4% over the same period last year.

That is to say, under the level of extrusion, small and medium-sized enterprises have no profit.

As a result, some bosses began to "run".

"This tax reduction is one of the structural tax cuts, and it can not be said that its tax cuts are in place."

Xue Shengwen believes that the current tax law is still more stringent for small and medium enterprises. It should further expand the scope of benefit for SMEs and ease their plight.

In every cycle of economic contraction, SMEs are always the first to be injured. Therefore, we must introduce policies to support the capital market and small and medium-sized enterprises at the same time.

An analyst who declined to be named said that the purpose of adjusting these tax policies is to support the development of small and micro enterprises, and to regulate the financing difficulties of small and micro enterprises. It is an encouraging measure and helpful, but a single measure can not solve the problem, and it still needs to cooperate with his measures.

Embrace development and tide over difficulties

"Enterprises should strengthen their confidence and act like the combination of government and enterprises, bank holding together, industry holding together, big and small businesses and internal holding UPS, just like the outbreak of the international financial crisis."

Zhou Dewen believes that as long as we hold together tightly, there will be no difficulties that can not be overcome.

Just when reporters interviewed Zhou Dewen, a boss called Zhou Dewen and complained to him, "the bank's 40 million yuan loan is going to be wasted."

Zhou Dewen told reporters that because bank loans need mutual insurance, and those who were willing to provide loan guarantees are now worried that borrowers are unable to repay, they are unwilling to provide guarantees. "The key 40 million yuan is likely to be yellow."

Credit crisis has now emerged.

If an enterprise chooses to refinance the bank, it may undergo a re evaluation. In the period of economic contraction, the assessment value of the enterprise may be greatly reduced, and the loan amount that the enterprise will get will also shrink.

Ruixin group is one of the few enterprises that face debt because of guarantee.

After the owner of Xintai group, a leading enterprise in Wenzhou's eyeglasses industry, fled with its secured relationship, more than 10 enterprises were chased by banks and no longer continued to lend.

"The difficulty we face today is to guarantee 56 million yuan for Xintai group. Because the boss of Xintai is on foot, we have a loan of 56 million yuan to repay."

Ruan Chundao, chairman of Ruixin group, said that if mutual insurance companies had similar incidents to happen again, it would be very difficult for enterprises to carry them.

The problem in Wenzhou is only a microcosm of the national problem.

Zhou Dewen told reporters that there is a view that the situation in Wenzhou will not spread to the whole country, which is a wrong understanding.

The situation in the whole country is no lighter than that in Wenzhou.

"I went to 14.90,0.00,0.00% 4 times this year, and private lending in Ordos is much more serious than in Wenzhou.

Jiangsu Sihong, Fujian Xiamen, Guangdong Dongguan, Zhongshan and so on, are all similar to Wenzhou.

According to a central bank survey report, when China's private lending market began to rise last year, the stock of funds has exceeded 2 trillion and 400 billion yuan, accounting for more than 5% of the loan market share at that time.

In the past two years, the stock of private lending has increased by more than 28%.

More small and medium-sized shoe companies need external funding support, but they find it increasingly difficult to get funds from formal financing channels.

"This time, some enterprises in Wenzhou have difficulty in capital turnover, and some bosses are running away, causing chain reactions."

Ye Jianping hopes that the government and financial institutions can increase their support and protection for SMEs.

He believes that private lending in Wenzhou is not accidental. Without private lending, there will be no private enterprises.

Wenzhou's private capital is still strong. The problem is that there is no way to invest and lend to others.

There is a lack of platform and bridge between private capital and private enterprises.

"I suggest that the government turn Wenzhou's private capital from" underground "to" above ground "and form a financial system conducive to the healthy development of private lending.

Xue Shengwen believes that tax cuts show that the state is paying more and more attention to the current plight of SMEs, and will gradually adopt supportive policies for SMEs. However, for small and medium enterprises, relying solely on tax cuts can not fundamentally help them relieve their difficulties. The pformation of SMEs and their competitiveness are all indispensable factors. In the process of helping small and medium-sized enterprises, the state should also increase the construction of financing channels for small and medium-sized enterprises, and expand the identification standards of small and medium enterprises, so as to benefit more enterprises.

"All enterprises should strengthen their confidence and act like the combination of government and business, bank holding together, industry holding together, holding large and small businesses together, and internal holding together, just like the outbreak of the international financial crisis."

Zhou Dewen believed that the small and medium-sized enterprises in Wenzhou began to build up together in Baotuan, and as long as they held together tightly, there was no difficulty that could not be overcome.

Private lending in sunshine operation

Let private lending supervision be in the sunshine, so as to promote diversification of financial services institutions.

We should reduce the threshold for private capital to run financial institutions, give private lending some legal status, incorporate normal financial supervision, and give private capital a reasonable outlet.

Zhou Dewen revealed to reporters that Premier Wen Jiabao made five proposals to the premier at the Wenzhou research entrepreneur forum: direct tax cuts for small and medium-sized enterprises, speed up the pace of financial opening to the interior, increase the reform of investment and financing system, appropriately adjust the national macro-control policies, and recommend the State Council to set up the State Administration of small and medium enterprises.

How to solve the financing difficulties of SMEs? Some experts suggest that a separate regulatory body should be established at the local government level to regulate private lending in the region.

Let private lending supervision be in the sunshine, so as to actively promote the diversification of financial services institutions.

At the same time, we should reduce the threshold for private capital to run financial institutions, give private lending some legal status, and incorporate normal financial supervision, and give private capital a reasonable outlet.

Zhou Dewen told reporters that when he delivered a speech at Columbia University in late October, he talked about the domestic environment for the survival of Chinese SMEs. "China's financial system and investment and financing system are not reasonable and perfect. It has lagged far behind the development of China's economy and needs to be reformed."

Zhou Dewen believes that China's financial system should be reformed from top to bottom, breaking the monopoly pattern of state owned economy, conscientiously carrying out the new 36 promulgated by the State Council last year, allowing private capital to enter the financial services industry, so as to prepare a large number of small financial institutions serving small and medium enterprises, especially small and micro enterprises, such as foreign small business banks and community banks, which are able to meet the needs of households. Only a large number of small financial institutions can emerge in China to solve the financing difficulties of SMEs. The Chinese government should also legalize private lending as soon as possible, and formulate relevant laws, such as "inter citizen lending law" and "lender regulations", so as to enable private lending to operate in a sunny way and be incorporated into the state's supervision.

At the same time, China's investment and financing system also needs to be constantly reformed and perfected. It is necessary to increase direct financing channels for SMEs, such as improving the "equity market" and "debt market", allowing SMEs to issue shares and non listed equity pactions and issuing bonds to achieve the purpose of financing, rather than relying too much on indirect financing, that is, bank loans.

"RMB appreciation has brought serious pressure on the development and survival of SMEs in China, especially those engaged in export business, and at the same time, it also promotes pformation and upgrading of these SMEs."

Zhou Dewen said that China's small and medium-sized enterprises now think the most and talk about the most is pformation, change the way of growth, improve product technology content, improve the added value of products, improve production efficiency.

But pformation, pformation and improvement can not be achieved in a short time, and need a process.

Therefore, the reform of the RMB must adhere to the principles of initiative, controllability and gradualism. We should take advantage of the situation and seek advantages and avoid disadvantages so as to minimize the possible internal and external negative effects.