Posts Tagged ‘china’

Posted on November 4, 2009 - by boris

China: Mending micro-credit…

The pursuit of profits at the expense of poverty stricken individuals has the China Association of Microfinance (CAM) calling for improved industry self-regulation and a social performance assessment of the country’s micro-credit institutions at a micro-finance forum held recently in Beijing.

The micro-credit institutions (MCIs) need to improve their social performance management and assessment systems to help the investors and regulators with better decision making and regulations, Bai Chengyu, secretary general of the CAM, told the China Microfinance Summit Forum 2009.

Currently the requirements that many small loan institutions have for low income customers to provide collateral for loans contradict their stated objective of providing financial services to the poor to eliminate poverty, said Bai.

Read more

Source: http://news.alibaba.com/article/detail/business-in-china/100193628-1-mending-micro-credit.html

Posted on October 13, 2009 - by boris

HSBC and Women’s World Banking provide financing to farmers and small businesses in rural China…

The Hongkong and Shanghai Banking Corporation Limited, in partnership with Women’s World Banking (WWB), one of the largest networks of microfinance institutions and banks,  announced the successful launch of a new “individual lending” product, an unsecured small business loan tailored to meet the financing needs of farmers and small businesses in rural China.

WWB is providing technical support to HSBC, training local staff in managing and servicing a portfolio of farmers and small businesses and creating tailored financial products and services to address the specific needs of the country’s rural areas. HSBC partnered with WWB to tap the organization’s 30 years of experience in assessing local market conditions, designing financial products with low-income clients in mind and assisting financial service providers in expanding their rural franchises.

Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation Limited, said: “We are very pleased to be able to extend our financial services to farmers and small rural businesses in China through the launch of the individual lending product. As the first international bank to enter the country’s rural market, HSBC is leveraging its international experience and partnerships to tailor suitable products and services for rural communities in China.”

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Source: https://www.theasianbanker.com/A556C5/Update.nsf/0/BBBA4FA10A2610B54825764E0023A815?Opendocument

Posted on October 8, 2009 - by boris

Does China need microfinance?…

The concept of distributing small loans to the poor has flourished across Asia since its introduction in Bangladesh three decades ago. Yet it has a notably minimal footprint in China.

A casual observer might say China doesn’t need microfinance. After all, it is now the world’s third-largest economy. But beyond the prosperous cities, millions of people still languish in poverty. China has the second-largest number of poor after India. About 254 million people in China lived on less than $1.25 a day in 2005 (as measured in purchasing power parity dollars), according to the World Bank. The income gap is widening between rural and urban areas and has today reached a historical high.

Microfinance is one tool that can reduce this entrenched poverty by providing entrepreneurs with credit, just as it has in other developing countries. Loan sizes would be larger than in India because GDP at purchasing power parity per capita in China is higher at $5,962 versus $2,972 in India, according to 2008 World Bank figures.

But loans would still be used for income-generating activities such as raising livestock, buying materials for micro-businesses and farming, and setting up small trade and services. This is especially pertinent as the government seeks to create a “harmonious society” in part through poverty reduction and human development.

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Source: http://online.wsj.com/article/SB10001424052748703298004574457922639779290.html?mod=googlenews_wsj

Posted on August 7, 2009 - by boris

International Finance Corporation (IFC) investment in Renshou Minfu Rural Bank to support financing for small businesses in China…

IFC, a member of the World Bank Group, has
agreed to invest 5 million Chinese renminbi (equivalent to $700,000) in Renshou
Minfu Rural Bank, a village and township bank in Sichuan Province, to support
financing for micro and small businesses in rural China.

IFC also will provide advisory services to enable Renshou Minfu Rural Bank to
increase operational efficiencies, adopt advanced risk management practices,
and provide high-quality products and services.

Read more
Source: http://ifcln001.worldbank.org/ifcext/mediahub.nsf/Content/SelectedPR?OpenDocument&UNID=016E1879DC2810758525760A0056B162

Posted on June 23, 2009 - by Gavin

Micro-finance banks to get $8.4m grant…

Vanguard Kaduna, Nigeria, The Executive
Secretary/Chief Executive Officer of the Nigerian Investment
Promotion Commission, Alhaji Mustapha Bello, yesterday, said that
six micro-finance banks in the country will receive about $8.4
million grant this year. Bello said that the lifeline was to
address the problem of poor access to loan and equity capital
confronting micro, small and medium enterprises in Nigeria. He
spoke in Kaduna while addressing participants at the Business
Development Services Fair jointly organized by the World Bank and
the Federal Government. According to Bello, the grants awarded by
the MSME Project, a joint pilot project of the Federal Government
and the World Bank, were expected to attract over $20 million worth
of new private sector investment to the micro-finance institutions.
Bello further said that the six micro-finance banks are currently
serving over 800,000 active clients, including over 50,000 active
borrowers. “Access to finance is a significant problem for Micro,
Small and Medium Enterprises (MSMEs) in Nigeria. MSMEs have poor
access to both loan and equity capital,” he said. “To overcome
these constraints the project through its to finance component has
broadened and deepened finance provision to MSMEs through the
introduction of new financialinstitutions. “A total of $8.4million
of grants has been approved for six micro-finance banks-ACCION,
SUSU, IMFB (opened a branch in Kaduna), MIC, LFS, and Microcred
(will be operating from Kaduna)… “In this respect we recognize
the important role the MSMEs play in harnessing the forces of
economic growth to benefit the poor and have identified access to
both financial and non-financial support as critical to the growth
of NigerianMSMEs. “This is especially important as the current
global economic and financial crisis will have significant impact
onemerging economies,” he added. Earlier, the Team Leader,
WorldBank/MSME Nigeria Project, Mr. Emeka Ile said that the
projectwas working in Kaduna State with the New Nigeria Foundation
topromote rice production chain. Source:
http://www.vanguardngr.com/2009/06/19/micro-finance-banks-to-get-84m-grant/

Posted on April 16, 2009 - by Gavin

Deals Help China Expand Its Sway in Latin America…

The New York Times

CARACAS, Venezuela — As Washington tries to rebuild its strained relationships in Latin America, China is stepping in vigorously, offering countries across the region large amounts of money while they struggle with sharply slowing economies, a plunge in commodity prices and restricted access to credit. In recent weeks, China has been negotiating deals to double a development fund in Venezuela to $12 billion, lend Ecuador at least $1 billion to build a hydroelectric plant, provide Argentina with access to more than $10 billion in Chinese currency and lend Brazil’s national oil company $10 billion. The deals largely focus on China locking in natural resources like oil for years to come.

China’s trade with Latin America has grown quickly this decade, making it the region’s second largest trading partner after the United States. But the size and scope of these loans point to a deeper engagement with Latin America at a time when the Obama administration is starting to address the erosion of Washington’s influence in the hemisphere.

“This is how the balance of power shifts quietly during times of crisis,” said David Rothkopf, a former Commerce Department official in the Clinton administration. “The loans are an example of the checkbook power in the world moving to new places, with the Chinese becoming more active.” (more…)

Posted on April 16, 2009 - by Gavin

China’s quarterly growth slows to 6.1%…

Financial Times

China’s economy grew 6.1 per cent in the first quarter, the lowest year-on-year reading since quarterly GDP data was first published in 1992 as Beijing struggled to prop up growth that has deteriorated in the face of the global crisis.

The increase was down from 6.8 per cent in the fourth quarter and 9 per cent for the whole of 2008.

The rapid cooling in Chinese growth has been led by a collapse in exports and private sector investment but aggressive government stimulus measures to boost growth through infrastructure spending kept the economy in positive territory.

The 6.1 per cent GDP growth rate was far lower than the 10.6 per cent recorded in the first quarter of 2008 and less than half the 13 per cent China recorded for the whole of 2007 but the government appears relieved that growth has not deteriorated further.

The figure was “indeed quite an achievement” against the background of the worsening global crisis and recession in many of the developed economies that China relies on to buy its exports, Li Xiaochao, spokesman for the National Bureau of Statistics. (more…)

Posted on April 2, 2009 - by Gavin

‘China no more a threat to us’…

DNA India

Mumbai: Many Indian manufacturers that were giving China competition in the international market have been hit hard by the current crisis. Still, Mohammed Saqib, founder and secretary-general of the India-China Economic and Cultural Council, says Indian businessmen have no reason to fear the dragon.

Who is worst affected by the global economic recession — India or China?
It is China. More than 50% of their economy is dependent on exports and China exports all types of goods across the world. Due to the recession, China is going through a bad phase. In the past a few months, more than 50 lakh people have lost jobs and more than 10 lakh have shut down their business. In the case of India, our exports are just 14% of our economy and the slowdown is psychological. Looking at all these factors, now, China is no more a threat to India.

Compared to China, where is India lacking?
I have been to China several times over the past few decades. There is neither license raj nor inspector raj in China, which is our biggest drawback. If our government stops interfering once the licenses are issued, even our companies will be able to produce good quality products. As regards the Chinese, they are tech-savvy and they are good in productivity. But they lack in marketing skills. (more…)

Posted on March 18, 2009 - by Gavin

China: As Economic Crisis Deepens, Millions Uncertain About the Future…

Alertnet

SILVER SPRING, Md.–The current economic crisis is placing significant pressure on the resources of countries around the world, including China, where the financial downturn has caused an increase in unemployment, lowered household incomes, and sparked rising fears of social unrest, said the Adventist Development and Relief Agency (ADRA).

To help impoverished farming families in rural Anhui province improve their financial security, in 2006, ADRA began an economic development project in partnership with the Chinese government that provides valuable livelihood training opportunities and income-generating small loans initiatives for families in need. “ADRA is fulfilling an urgent need for these poor families,” said Sharon Tobing, acting programs director for ADRA China. “A line of credit represents a tremendous opportunity to make important investments, generate alternate forms of income, and begin moving out of poverty.”

ADRA has also worked with the Chinese Academy of Social Sciences (CASS), to provide training for more than 90 government officials from the Leading Group Office of Poverty Alleviation located in Huo Shan County on how to successfully manage and execute micro-finance projects, and is providing training and financial assistance for 1,000 low-income rural famers in Da Hua Ping and Yu Er Jie Townships in Huo Shan County. (more…)

Posted on March 13, 2009 - by Gavin

MICROCAPITAL STORY: SKS Microfinance in India Plans to Launch Operations in China…

Microcapital

SKS Microfinance, the largest microfinance provider in India in terms of assets, is planning to launch operations in China, in a move to expand its reach beyond India. According to a press release on The Economic Times, SKS reckons this would be the ideal time to enter the Chinese market. The export driven Chinese economy has been impacted by the global meltdown and several vocationally-trained rural employees in China have lost jobs.

SKS plans to give credit to these unemployed groups in China and help them start their own ventures. In this regard, the release quoted the chief executive officer and managing director of SKS Microfinance, Mr. Suresh Gurumani as saying that SKS was looking to expand in China primarily because it was a ‘large country with a significant population that was poor’. Mr. Gurumani also stated that the expansion was a move to share SKS’ knowledge in the field of microfinance to benefit ‘a larger section of people’. SKS’ foray into China would make it the first overseas expansion for an Indian microfinance institution (MFI).

Subject to all regulatory approvals granted by both the governments, SKS plans to tie up with a China-based MFI to start operations in the country. As of now, no information on the Chinese MFI is publicly available. As per the release, SKS is currently evaluating regulatory issues that may have to be sorted out to set up a joint venture in China. Commenting on this, Mr. Gurumani said there were legal, compliance and cultural issues that SKS had to understand well before plunging into a detailed exercise. As of now, no timeframe has been set for the proposed venture. (more…)

Posted on March 12, 2009 - by Gavin

China and US hold key to upturn…

Business Daily

March 12, 2009: China’s economic growth will plunge in 2009. The United States is in severe recession. For the world’s economy to recover, these two economic powerhouses must cooperate and become the engine for the Group of 20. Without a strong G-2, the G-20 will disappoint.

We must address realities. The root cause of broader global payment imbalances is structural: overconsumption in the United States and oversaving in China.

For the United States, the consumption boom was fuelled by bubbles in stocks and housing. This was accompanied by a collapse in the US savings rate. For China, the savings surplus is a result of structural distortions in the financial, corporate and resource sectors.

China’s savings rates, at up to half of its gross domestic product, are much higher than in other countries. But this is not all because of workers saving money. Indeed, household savings in China are about 20 per cent of GDP, similar to the rate in India.

An unusually high amount of savings comes from large companies in China’s corporate sector. Small and medium-size enterprises, which employ 80 per cent of workers, have minimal access to financial services because that sector is dominated by four large banks that primarily serve large companies. (more…)

Posted on November 3, 2008 - by James

Citi Taps Rural Market in China

Citigroup Inc, the largest US bank, said yesterday that China’s banking watchdog has approved its plan to open two microcredit firms in Hubei province, tapping the nation’s vast rural market. 

Citigroup, the first overseas lender allowed to establish such institutions in the country, plans to set up the two firms in Gong’an county and the city of Chibi, which are scheduled to open in the next few months.

 

The move comes as major rivals including HSBC and Standard Chartered are opening rural outlets in order to expand in the nation’s underdeveloped regions and the government is relaxing controls on private financing to support thousands of small and cash-strapped manufacturers… [click here to read the rest of this article...]

Posted on October 22, 2008 - by lincolnw

China Emphasizes Microcredit Expansion Again

BEIJING, October 21, SinoCast — The People’s Bank of China (PBC), the country’s central bank, has recently encouraged some commercial banks to devote themselves to supporting the microfinance and financing schemes of the domestic SMEs (small and medium enterprises).

Several days ago, Wen Jiabao, premier of the State Council, emphasized that the nation should further improve the microcredit guarantee system, stimulate more financial institutions to microfinance, broaden SMEs’ direct financing channels, as well as finance the technical innovation of SMEs in the fourth quarter of 2008 and even the near future…{click this link to read the rest of this article}

Posted on October 14, 2008 - by lincolnw

Microcredit lenders ermerging in China

Microcredit lenders, once the quaint peripheral players in China’s mammoth financial system, are emerging from the shadows of the State-owned banks as white knights to thousands of small, cash-strapped manufacturers around the nation.

The spate of bankruptcies in the manufacturing sector, particularly in the Pearl River Delta region, has prompted the government to act by selectively relaxing credit controls three times in the past two months…{click here to read the rest of this article}

Posted on August 27, 2008 - by James

China: AIG acquires 18% stake of MicroCred…

AIG BUYS EXCLUSIVE RIGHTS TO MICROCRED MICRO-INSURANCE

CHARLOTTE, N.C.-American International Group Inc. said Tuesday it has acquired 18 percent of MicroCred Nanchong China and the exclusive right to sell micro-insurance to MicroCred clients for two years.

AIG (nyse: AIG - news - people ) Micro Financial Services, a unit dedicated to providing financial services and products to low income individuals and micro entrepreneurs worldwide, is leading the U.S. insurer’s efforts with MicroCred Nanchong China, the New York-based… [click here to read the rest of this article...]

Posted on August 19, 2008 - by James

First: Micro-insurer launches in China…

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