Officials mull steps to help HK firms
Updated: 2008-12-04 07:39
By Kwong Man-ki(HK Edition)
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Many Hong Kong-owned factories in the Pearl River Delta region have gone bankrupt. HKMA Chief Executive Joseph Yam met some mainland officials yesterday to seek aid for the enterprises there. AFP |
The Hong Kong Monetary Authority (HKMA) along with three business associations held a meeting with the mainland officials in Guangzhou yesterday to discuss measures to help the city's companies in the Pearl River Delta region to get loans on the mainland.
Those present at the meeting include HKMA chief Joseph Yam, local representatives of the People's Bank of China (PBOC), the China Banking Regulatory Commission (CBRC) in Guangzhou, representatives of Hong Kong General Chamber of Commerce (HKGCC), Chinese Manufacturers' Association of Hong Kong (CMA) and Federation of Hong Kong Industries (FHKI).
Hong Kong-owned companies in the Pearl River Delta region have been facing difficulties to get loans from mainland banks due to the global credit crunch and the FHKI warned earlier that one-fourth of the companies in the manufacturing hub may go bankrupt.
The meeting discussed how companies can use Hong Kong collaterals to get loans from the mainland banks. Last month HKMA reached an arrangement with the PBOC so that Hong Kong banks operating on the mainland can seek collateralized loans from the PBOC.
Yam said that the measures can be expanded to the other enterprises on the mainland. He also noted that mainland banks need more credit information in approving the loans, and the problem can be solved with the cooperation of different parties.
The details of these measures are quite complicated and need further research, he told reporters in Guangzhou. "We will do our best to work out the details with Hong Kong business associations and the mainland supervisory officials," he said.
"The response from the PBOC and CBRC is positive, but we should not underestimate the difficulties," he said.
Yam said the mainland's new regulations need to be better explained to Hong Kong businesses operating in southern China. He also noted that the relations between mainland banks and Hong Kong companies should be improved.
CMA vice-president F C Lo expects more than 10,000 companies to benefit once they are allowed to obtain collateralized loans from mainland banks. He hopes that the mainland authorities will issue guidelines for the banks in lending to Hong Kong companies.
FHKI Chairman Clement Chan said the PBOC representatives responded positively on Hong Kong business associations' suggestions. FHKI also urged the mainland banks to accept more variety of collaterals.
Jeffrey Lam, Legislative Representative of HKGCC, expressed hope that the details of the measures will be confirmed before the Lunar New Year, as those SMEs need more capital during the period.
(HK Edition 12/04/2008 page2)