China SMEs may still struggle for bank loans despite RRR cuts
While the People’s Bank of China hopes cuts to its reserve rate ratio will inject liquidity into the SME market, the fundamentals still weigh heavily against it.
Corporate treasurers at small and medium-sized enterprises (SMEs) holding out for a lending bonanza in the wake of a policy change by China’s central bank should not hold their breath, according to analysts who say credit risk fears are likely to outweigh benefits from the new policy.
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