介绍:
Zhao Yang: The Chinese government has been trying to push money towards innovative, micro-, small – and medium sized business and away from fixed asset investments in secondary manufacturing. If there is so much money around, why isn’t it flowing toward these groups? What are the specific issues here
Winston Wong: There are a lot of challenges I think number one is the mechanism of where money is flowing in the system and most of the system is controlled by large SOE banks and these banks have no incentive to finance these low and medium sized businesses. Because it s very costly to make loans to make loans to small- micro --medium sized business. Just think about it if you are a bank operator; if you can make a loan of one billion dollar to some giant company and you can charge them an interest rate. Or you can make a loan to a small restaurant operator for say $50 000 how much are you going to ear from that? Naturally, its human nature, you would try to go to larger clients so that’s understandable. But then the whole SOE structure makes it more challenging.
Winston Wong: Then there is the challenge of the burden of the cost burden of the small and the medium sized enterprises I know Einar [Tangen] is going to disagree with me, but I always believe that’s one big factor in affecting the situation. If the government… I just feel that they need to rethink their strategy of allocating their resources. They need top relieve the burdens of the small and medium enterprises and I think the overall taxation burned of small Chinese companies is just too high. If you add on all the VAT taxes the income taxes the various fees the social security insurance all those kind of costs on the small and medium enterprises, they are probably one of the highest in the world. I don’t think that is a wise policy. While on the one hand you are pumping money into the market without being able to see it flowing to the right place, and on the other hand you see small and medium enterprises struggling. This is just wrong.
Einar Tangen: Well I’m not going to disagree with Winston. There’s too much red tap and over taxation is not a good thing. But this idea that you can just do away with government regulation is I think where we probably disagree, there’s got to be sensible regulations in there that make the market…I mean look at shadow banking, the government is going to put in a clause where they are going to take off the upward limit of the bank lending, this is wonderful because you are going to see now its not necessary for these banks to create these shadow lending entities they can just do the business and this can make things open up. These are the types of things; adding capacities to actually do the business. What Winston spoke about the one billion dollar client vs the $50 000 client, you need people who are capable of making these risks assessments and doing these deals very efficiently so you can get the money to micro- medium and small-sized enterprises who are really going to be the future of China.
