SMES＇FINANCING,Hard Nut to Be Cracked？

Small and medium-sized enterprises （SMEs） are a crucial driving force for innovation, employment and development and the engines of growth in an economy. But as the sector is characterized by information asymmetries and high processing costs, banks are reluetam to lend to SMEs, which have long faced difficulties in financing. Amid capital depletion, risk aversion and credit contraction in the current global economic crisis, the issue of financing for SMEs is a pressing issue for all natlons, which is not exceptional to China.     

The Myths and Realities of Informal Financial Resources

Under the context of tightening macro-control polices,the financial problems of small and medium sized enterprises (SMEs) rise again.Many SMEs resorted to the informal financial resources,and some of the SMEs can't shoulder the huge financing pressure with the weakening economic activity and many bosses run out in Wenzhou etc.SMEs have the increasingly important role in ensuring the sustainable,healthy and stable development.In order to get closer views of financial problems of SMEs in Hainan,we made a survey of informal financial Resources.Here are some of the results of the survey.     

Boosting Int'l SMEs Cooperation——Interview with Zhu Shuhai,Director,Department for SMEs,Trade Development Bureau,Ministry of Commerce

Either in the developed countries or developing countries,the small and me- dium enterprises(SMEs)have been playing a significant role in promoting the tech- nological progress,employment,export, etc.Especially in the modern society with efficient development of knowledge and in- formation,which is making the production and business operation smaller and more dispersed,and with more family participa- tion as well,SMEs are becoming a more and more important force of the social and economic development. Although the SMEs have made very important contributions to the national economic development and the increase of employment,they are thirsty of more gov- ernment and social supports,especially for the overseas development.In order to meet the mission of promoting the SMEs development,the Ministry of Commerce has established Department for SMEs. In July,China's Foreign Trade inter- viewed Zhu Shuhai,Director of Depart- ment for SMEs,Trade Development Bu- reau,Ministry,of Commerce.     

Boosting Int＇l SMEs Cooperation——Interview with Zhu Shuhai,Director,Department for SMEs,Trade Development Bureau,Ministry of Commerce

Either in the developed countries or developing countries,the small and medium enterprises（SMEs）have been playing a significant role in promoting the technological progress,employment,export, etc.Especially in the modern society with efficient development of knowledge and information,which is making the production and business operation smaller and more dispersed,and with more family participation as well,SMEs are becoming a more and more important force of the social and economic development. Although the SMEs have made very important contributions to the national economic development and the increase of employment,they are thirsty of more government and social supports,especially for the overseas development.In order to meet the mission of promoting the SMEs development,the Ministry of Commerce has established Department for SMEs. In July,China＇s Foreign Trade inte viewed Zhu Shuhai,Director of Department for SMEs,Trade Development Bureau,Ministry,of Commerce.     

Break the Iceof “Financing Difficulty”

141ccording to “Survey on Current Conditions of and Intentions for Outbound Investment by Chinese Enterprises (2008-2010)” officially released by the China Council for the Promotion of International Trade (CCPIT),over 60％ of respondent enterprises believe the “determining factor” or “crucial factor” restricting their outbound investment is financing difficulty and shortage of international trade management talents.Most of these enterprises are small and medium sized enterprises (SMEs) with no more than 5 million outhound investment.     

The English Edition

Expo Bonds Set for Market State Council and NDRC hadapproved to issue8billion yuan(US$986million)bonds in a bid tobroaden financing channels andsupport construction for the2010Shanghai World Expo.The firstphase of1.5billion yuan ShanghaiWorld Expo bonds w…     

Five Dilemmas of SMEs

When the financial storm indulges in the Wall Street of US,the whole world economy is threatened.In this global economy,no one can turn away from its impact.So as China and her SMEs.Small and medium-sized enterprises,i.e.SMEs,are often opposite to state-owned enterprises,i.e.SOEs in China.Born with some natural shortages, where can Chinese SMEs find shelter for the bad weather? How can they survive in the tempest? To be or not to be,that is a question raised to them cruelly.     

Stand Still in Global Financial Storm?

The number of small and medium- sized enterprises(SMEs)in China has exceeded 40 million, accounting for 99 percent of the country's total enterprises.Chinese and foreign experts estimate that SMEs are now responsible for about 60 percent of China's industrial output and employ about 75 percent of the workforce in Chi-     

China-SME Index Distorted by Holiday Effect

*The SME index fell modestly to 55.6 in February from 56.6 in January;expectations index improved*Real activity weakened during the Lunar New Year holiday;job market deteriorated further*Credit availability remains tight for SMEs;financing costs have edged lower*IT sector outperforms;business conditions are healthier in central-western and southem China     

RMB Appreciation SlashesExporters' Profits

This year,with the increasing cost for domestic labor and raw materials,the enterprises particularly the small-andmedium-sized (SMEs) were through a much tougher time.When negotiating with their foreign counterparts,Chinese exporters have to take into account the exchange rate fluctuations in three months.As many foreign clients are reluctant to accept forward exchange rates,the business has to be conducted by current exchange rates.The domestic enterprises have no way to withstand losses incurred by fluctuations of exchange rates,which have made them begin to lose superiorities in terms of price.     

Encouraged Projects for Foreign Investment in China

According to official statistics,the population of foreign residents in China amount- ed to above 320 thousand by the end of last year.Most of them are working for institu- tions and enterprises in China.They are an undividable part of Chinas growing econ- omy.To better promote business exchange between China and the world,and to better serve those foreign friends in China who contribute for China's international exchange, China's Foreign Trade opens this special"Foreigner's Guidance"column,supplying use- ful information for foreign readers mainly on investment and trade in China.Each issue of the Magazine will focus on different aspect,from where business and life could be easier to start.We offer more than guidance!     

Encouraged Projects for Foreign Investment in China

According to official statistics, the population of foreign residents in China amounted to above 320 thousand by the end of last year. Most of them are working for institutions and enterprises in China. They are an undividable part of Chinas growing economy. To better promote business exchange between China and the world, and to better serve those foreign friends in China who contribute for China＇s international exchange, China＇s Foreign Trade opens this special ＂Foreigner＇s Guidance＂ column, supplying useful information for foreign readers mainly on investment and trade in China. Each issue of the Magazine will focus on different aspect, from where business and life could be easier to start. We offer more than guidance!     

Issue of Franchising Operational Resources:IP and Business Secret

Franchising is a business model which uses business resources(trade mark, patent or business secret etc) to contract others to use for profit.In the franchise operation, business resources are the core value, business resources can make the franchisee to establish strong competitiveness or edges within the market, which also made a franchisor to develop and growth.Business resources are usually makes the franchise operation to have sufficient market advantages, the content of intellectual property or trade secrets which usually other industry competitors do not have, which made this kind of business resources for the franchisor more attractive to investors in the business world. Although, intellectual property and trade secrets there are a lot of different in the field of franchising sector, but there are sometimes have some overlap in content, it is a decision for franchisor to use intellectual property rights, or to use the trade secret to franchising as the core resource for protection.     

Managing Abundance to Avoid A Bust in Latin America

Latin American (LA) economies today are at a challenging juncture as key global conditions have aligned in very exceptional ways, representing a double tailwind for many countries of the region.These countries must figure out how to best respond to a sustained period of unusually easy foreign financing conditions and large capital inflows.At the same time, they face high world prices for their commodity exports, another source of abundance that is likely to be persistent but not permanent.Such conditions are, of course, in many ways favorable, creating opportunities with important upsides.But such conditions can also lead to an accumulation of important vulnerabilities for the future.There are challenges both while these conditions persist and during the transition after they end because severe dislocations and crises may arise if the good times are improperly managed.Indeed, some of Latin America's own past experiences with the "problems of plenty" have illustrated that good times can be followed by bad endings.     

A New Interest Rise Directed at Inflation

Greater inflation pressure and worsening negative interest rate are the direct causes for the interest rate rise,which also conforms to the changes of the market interest rate. Right when the Qingming Festival is coming to an end,the central bank exercises its muscles again to increase the interest rate,raising the base interest rate for deposit and loan in RMB by 0.25 percentage points.Growing pressure of inflation and worsening negative interest rate are the direct causes for the interest rate rise,sai...     

Views from Shandong

Zhang Shaojun：Three qpproaches to bail SMEs out
Shocked by the international financial crisis, it becomes increasingly hard for small and medium-sized enterprises （SMEs） to get loans from banks. ＂The government must take effective measures to help SMEs get through difficult times.＂ Zhang Shaojun, NPC deputy, also the governor of Linyi City in Shandong province, said when interviewed during the two sessions.     

Invest in Junisia

Tunisia maintains a clear and far-reaching vision of development. In opening up the country economically, the option has been taken to go the distance, thoroughly but gradually. Thus major reforms have been introduced in the areas of taxes, financing, privatization, liberalized foreign and domestic trade investment in all incentives, and modernization of production and infrastructure. Social dimensions are a basic consideration in all reforms. This step by step approach has allowed Tunisia to emerge a model of economic, political and social stability.     

From Farm to Table:Quality & Safety

Food safety is a global issue which demands an integrated,global response.The answer to tackling the issue of food-borne hazards lies very close to homein the farms,fields,orchards andrivers,large or small-where our food has its source.Agricultural products,which are daily necessity of our life and raw material of many kinds of processed food,usually come directly from these sources.In this regard,the quality and safety of agricultural products should be always on the top of priorities.     

Invest in Tunisia

Tunisia maintains a clear and far-reaching vision of development. In opening up the country economically, the option has been taken to go the distance, thoroughly but gradually. Thus major reforms have been introduced in the areas of taxes, financing, privatization, liberalized foreign and domestic trade investment in all incentives, and modernization of production and infrastructure. Social dimensions are a basic consideration in all reforms. This step by step approach has allowed Tunisia to emerge a model of economic, political and social stability.