pldragon

In China Money is Way to Loose, Not Tight

hey Michael...

Today, Looking for some infos about real estate market in China, I stumbled upon a very interested blog/website...
You will be surely intrested by this article (well, maybe you already knew...but it is total news for me...)

www.chinastakes.com/st...

" Government Moves To Legitimize Underground Lending in Zhejiang
July 14,2008





by CSC staff


In Zhejiang Province, with the most developed private companies and private capital in China, the government is trying to legitimize private capital, and set up small-sum loan companies to connect private capital with capital-hungry private companies.


The tight credit policy has driven many small and medium enterprises into hardship and even bankruptcy in coastal provinces like Zhejiang Province. Normally, formal banks, especially the state-owned banks, are reluctant to lend to private companies.


However, Zhejiang is also famous for its so-called underground banking, or back-alley banks as some analysts put it. The government has never issued lending licenses to them....."

Just like we used to say few weeks ago...