The higher one-year lending rate may be affecting larger makers more than smaller ones, but the difficulty in obtaining funding is adding to SMEs' cost pressures. Small and midsize enterprises in China are feeling the proverbial noose closing down on them. Acquiring financing from banks has always been difficult for SMEs, regardless of how high or low lending interest rates are. But because of recent challenges such as rising material costs and wages, it has become imperative for many such companies to invest in expanding their capability and boosting efficiency.
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