Article by Wui Seung Chong, legal consultant with Simmons & Simmons “Water, water, everywhere. Nor any drop to drink.” Change water to cash, and the poet Samuel Taylor Coleridge could have been describing the problem facing small-to-medium enterprises (SMEs) and other private businesses in China. There is plenty of money, in banks and under mattresses. But how to transport it into the hands of those who need it most - the SMEs that will be the engine of China's economy? The savings rate in China is legendary but savings are not necessarily deposited in banks, given low interest rates. Other investment opportunities are limited. Banks may have funds to lend but they are constrained by lending quotas that place SMEs at the bottom of the pile.
All news and features older than 7 days are subscription only. This article is from the archive. Archived articles could only be accessed with the subscription. If you are a subscriber please log in, alternatively you need to purchase a subscription to view the full content for this page.
