Zhejiang Enterprises Frequently Run And Run Businesses.

Soaring prices of raw materials, appreciation of the renminbi, sharp increase in labour costs, difficulties in bank loans and soaring private lending rates are becoming the five major predicaments facing millions of small and medium-sized enterprises in Zhejiang.

On the desk of the head of the Zhejiang banking regulatory bureau, there is a research report released in June this year, which shows the "death list" of Zhejiang's small and medium enterprises (stock quotes) because of usury.

In the case of 15 enterprises running away from Taizhou, most of them involve private lending: the name of the list is still increasing.

In fact, the soaring prices of raw materials, the appreciation of the renminbi, the rapid increase in labor costs, the difficulty of bank loans and the soaring interest rate of private lending are becoming the five major predicaments facing millions of small and medium-sized enterprises in Zhejiang.

Predicament 1: raw material prices skyrocketed. "Steel prices surged from 4500 yuan per ton at the beginning of the year to 6500 yuan per ton," said the head of a professional child carrier company in Panan. "Because the proportion of steel used in the product is too large, the orders received by the company at the beginning of the year are all depleted."

Because steel prices have risen by more than 40% since the beginning of the year, while the ex factory prices of processing enterprises have risen by only 10%, the production of these processing enterprises is very passive.

Li Huangen, general manager of Shanghai Bai Chan Industrial Company, said, "according to our customer survey, as the price of steel rises rapidly, the more orders customers receive at the beginning of the year, the more losses they will have."

Many customers simply do not pick up orders, businesses are in a halt, half stop production, hoping to reduce losses.

The price of raw materials is not only one of steel prices. The price increase of other raw materials is not lower than that of steel products.

Because of the scarcity of resources in Zhejiang, the price of raw materials has been seriously affected by the small and medium sized Zhejiang enterprises with "two heads in the outside, the big progress".

According to a sample survey conducted by Zhejiang Banking Regulatory Bureau recently for 265 small and medium enterprises, among all the factors that cause enterprises' tight funds, the proportion of raw materials rising too fast is as high as 65%.

Dilemma two: the increase in labor costs and the promulgation and implementation of the new labor law contract also pose challenges to SMEs in Zhejiang.

According to the latest research report of Zhejiang SME Bureau, the current labor contract signing rate and social security coverage rate of SMEs in Zhejiang is only 50%~60%.

The report said that if full coverage is achieved according to the law, the cost of employment will increase significantly.

"At present, there are more than 10 thousand employees in the group," said the boss of a large labor-intensive enterprise in Taizhou, Zhejiang. "If we realize the total coverage of" 5 gold "(endowment insurance, medical insurance, work-related injury insurance, unemployment insurance and provident fund), we need to increase the cost by about 14000000 yuan, plus raise the wage level by 4 million yuan, and increase the total labor cost by 18 million yuan, which will account for 27% of the company's annual profits.

Dilemma three: RMB appreciation pressure, RMB appreciation and export tax rebate adjustment also bring challenges to the traditional mode of foreign trade operation of small and medium-sized enterprises in Zhejiang.

The latest report of Zhejiang SME Bureau shows that "the RMB has appreciated by 4.3% in 1~4 months this year, which has become the most difficult factor to predict and influence SMEs."

The report, for example, said that the small and medium-sized enterprises in Zhejiang's textile and garment industry had only a profit of 5%~10%. The appreciation of the RMB has seriously affected the export of enterprises, and even some enterprises have been afraid to take orders for more than two months.

A boss in Yiwu, Zhejiang, who specializes in the production and export of clothing accessories, said yesterday that the operation was not good enough and that the factory was on the edge of production and could be shut down at any time.

The boss said that at present, Yiwu's counterparts have reached an unanimous consensus that the RMB exchange rate with the US dollar will be 6.5, and if a breakthrough is made, a larger part of the export production enterprises will be crushed.

For foreign trade enterprises, exchange rate fluctuations not only impede exports, but also bring risks to their foreign exchange holdings, thus causing them to suffer double losses.

According to the report of the Zhejiang banking regulatory bureau, small and medium-sized foreign trade enterprises hope that banks will provide various types of exchange rate hedging products, such as forward settlement and sale, trade financing, foreign exchange swap, foreign currency structured finance, etc., but the current means of banks are limited to long-term settlement and trade financing, and other means are rarely used.

Dilemma four: bank loans are difficult. The Zhejiang Banking Regulatory Commission's research report shows that the "tight money" policy has reduced the overall credit supply capacity of the banking institutions within the jurisdiction.

At the same time, the increase in operating costs of small businesses and the expansion of financing demand have increased the contradiction between supply and demand of credit.

The report shows that in the first quarter, all loans in Zhejiang increased by 144 billion 800 million yuan, up less than 31 billion 800 million yuan from the same period last year.

Among them, the number of small business credit households was reduced by 11664 compared with the beginning of the year, and the balance of loans for small businesses increased by 5 billion yuan compared with the beginning of the year, representing only 8.6% of the total increase of last year.

If the increment of small business loans is not less than the total loans for the same period, the loans for small businesses in the first quarter should be increased by 20 billion yuan, or 15 billion yuan in real terms.

"At present, the gap between small and medium-sized enterprises is very serious, and the risk of capital chain breaking is increasing."

The report of Zhejiang SME Bureau said.

Due to the scarcity of credit resources, the interest rate of bank loans for SMEs in Zhejiang has been increasing. Many banks have generally risen to 30%~40% or even 80% of their lending rates to SMEs.

If the loan is secured, the guarantee rate of the guarantee agency 2%~3% will be added, and the financing cost will be higher.

According to the report, in the 1~4 months of this year, the financial expenses of small and medium-sized enterprises above Designated Size in Zhejiang increased by 41%, of which net interest expense increased by 45.18%, with a deficit of 21.03% and a total loss of 7 billion 60 million yuan, up 34.93% over the same period last year.

Dilemma five: the interest rate of private lending is high. The report of Zhejiang banking regulatory bureau shows that many small and medium-sized enterprises can only turn to private lending in order to find financing channels because of the continuous tension of capital market.

At present, the proportion of self financing, bank loans and private financing has changed from 60:24:16 in 2006 to 54:18:28 in Wenzhou, Zhejiang.

According to the report, over half of the enterprises surveyed had had private financing behavior, and 15% of them had solved the problem of fund shortage through private financing.

The prevalence of private lending has also led to a sharp rise in private lending rates. "Part of the enterprises' short term" bridge loan "monthly interest rate is as high as 4~6 points. Lu Shaoji, director of the Zhejiang provincial SME Finance Bureau, told reporters that once the enterprise is unable to repay its debts, the capital chain will be broken.

Zhejiang Jin Gu Limited by Share Ltd is the largest steel tyre manufacturer in China. It has a stable liquidity loan.

However, in order to raise the grade of products, the company needs 100 million yuan of technical pformation investment urgently, and the medium and long-term loans of banks can not be implemented.

The head of the company said, "at present, there is no shortage of liquidity, but the market competition is fierce.

Technical pformation, no long-term loans from banks, misappropriation of short-term funds for technical pformation, is equivalent to finding death.

Lu Shaoji, director of the Financial Statistics Department of Zhejiang SME Bureau, told reporters: "the proportion of loans for technical pformation in Zhejiang's financial institutions has dropped from 16.09% in 2000 to 0.97% in 2007.

The imbalance of loan structure of financial institutions makes small and medium-sized enterprises lose their ability to follow up, and can not be bigger and stronger.