According to a report in China Youth Daily, Chinese bank have become more willing to lend money to small business. The China Construction Bank (CCB), has established a system to assess the credibility of small companies, which Zhu Xiaohuang, general manager of its corporate service department, says will facilitate the granting of loans.
For companies with transparent information release, lending rates will be no more than 30 percent higher than the benchmark interest rate. However, for companies with higher risk management, the lending rates will be over 50 to even 100 percent higher.
The Industrial and Commercial Bank of China (ICBC), China Merchants Bank and Shanghai Pudong Development Bank (SPDB) have similar systems in place.
