On 24th July, a Fund and Industry Strategy Symposium was held in Shenzheng by Shenzheng LED Industry Federation and the Minsheng Bank. 32 LED lights manufacturers attended this Symposium, more than 90% of which expressed their willingness to obtain loan. And about 80% will spend this money on development their chip technology, only 20% indicated that they would like to this money for other purposes. And more than 70% domestic LED producers intended to apply for a loan of more than 250 million yuan.
Cao Yon, Minister of the Financial Services introduced that among 600 members (most of them are LED lighting producers), 39 enrolled in the meeting but only 32 took part in. According to the size of this Symposium, there should be more than 50 companies plan to establish the fund, with a total amount of 10 million yuan. That means each company should put at least 200 thousands into this fund pool. In 20 pieces valid questionnaires, more than 90% LED tubes enterprises applied for loan. One of them indicated that the amount of mutual fund loans is much higher than that of small loan companies. Besides, the 10% annual interest rate is also much lower than 30% of small loan companies. “We need a lot of money, but lack of confidence to go to banks. Mutual fund can really do us a favor in this part.”
Meanwhile, Minsheng Bank indicated that they will limit the large amount loans with a certain percentage of control. Loans larger than2.5 million yuan should be under rigid restrictions. 7 of these 32 domestic LED producers have met the requirements of large amount requirements and expressed their desire to apply for loans larger than 2.5 million yuan. There is limited cash available and many businesses asking, the organizer acknowledged. Loan ratio can be adjusted according to the overall participating situation of fund companies. For example, if more giant jointed into, the ratio of large amount loans will be increase as well.
Among all these enterprises, about 45% plan to use this money to alleviate the working capital pressures; 20% of them for restructuring; and 80% will spend this money on technology research and development; 55% indicated that they are planning to expand the production scale.