Yangtze River Delta (YRD)

It is learned that starting from 2011, Wuxi’s Nanchang district will help enterprises raise funds and quicken their pace of transformation by organising “financing mart” on a regular basis.

According to the Nanchang district economic and information technology bureau, the majority of private enterprises in Wuxi used to be labour-intensive enterprises which have great development potential after undergoing technological reform. But since most of these enterprises rent their factories in industrial parks, they cannot raise funds by mortgaging their factories, and once they come across cash flow problem they would run into difficulty.

But now, through the financing mart set up by the government bringing together the government, enterprises and banks, enterprises can secure financing by obtaining guarantees and pledges from banks for development. Nanchang district actively encourages private financial service organisations to participate by means of assessing the growth potential of the enterprises concerned and help them obtain financing from banks by offering them credit guarantee.

It is understood that currently some new organisations acting like financial intermediaries have sprung up in Wuxi offering various services such as small-amount loans, mortgage, guarantee and valuation. One example is Huipu SME financial service centre, which is one of the few private organisations of the kind in the province. According to a responsible person of the company, for SMEs which cannot meet the requirements of banks for extending mortgages, they can now use a number of methods such as family joint guarantee or personal guarantee to secure financing by way of pledging family assets.