Small Enterprises Squeezed by Loans
Rumors have been circulating in the last few months that small enterprises in the Yangtze River Delta and the Pearl River Delta are suffering from tight capital supplies, large-scale work halts and even closures. Those that fear China's economy may suffer a "hard landing" see this as seeds of risk.
The tightening is obvious when it comes to new bank lending policies. But in Zhejiang and Guangdong, China's manufacturing hubs, still no evidence stands to back rumors of widespread closures.
"There are individual companies closing down, but there hasn't yet been a "wave of closure," Chen Wen, Chief Secretary of Guangdong Credit Association, told Caixin. Chen says companies are currently writing considerable orders.
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