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Alibaba.com (HKSE 1688)has invitation sent to its users to take part in a talk at the World SME Expo, Hong Kong Convention & Exhibition Centre.

The event will be taken place from 10-12 December, 2008, presenting a possible solution to small-and-medium size companies (SMEs) in the event of weakening economy following the financial tsunami.

Echoed to the event was today’s news cover story of  HK$4 billion funding to support local SMEs through HSBC Holdings (HKSE 0005).  

The Hong Kong largest bank announced its rescue plan of  US $5 billion global fund to increase capital liquidity to SMEs  around the world.  

The loans made in Hong Kong under the global fund are meant to apply to working capital and equipment financing needs. Loans will be allocated on a case- by-case basis, using HSBC’s normal lending criteria. Interest will vary, with high rates charged to risky businesses lacking government loan guarantees, according to HSBC global co-head of commercial banking Margaret Leung Ko May-yee.

Users who are interested in more details about the new Gold Suppliers package can visit Alibaba.com booth. Make an advanced appointment on: 852-22155128.

  • Alibaba.com at the World SME Expo
    Hall 1, Hong Kong Convention & Exhibition Centre
    Booth No. 1H02, 1H04
    10-12 December 2008
    (Free Admission)

 

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Boom and Bust cycles are inherent to our global economy. Amid the financial meltdown, Chinese Premier Wen Jiabao took a swiftly move to substain economic growth by excerising a “proactive fiscal policy” and “moderately-loosened monetary policy”.

It is a quick shift from the “prudent fiscal policy ” and “tightened monetary policy” outlined by the mainland government at the end of last year.

The new set of policy apparently is good news to SMEs facing the menace of the financial tsunami. Premier Wen reckoned that loan quota controls imposed by the central bank to commercial lenders would be scrapped to stimulate lending to support key government projects, agriculture and SMEs.

Premier Wen highlighted the fact that a RMB4 trillion worth of economic plan was on its way to boost domestic demand up to 2010.

Also on today’s front-page story is Hong Kong Trade Development Council would spend HK$120 million from its reserves to attract overseas buyers and subsidize local companies to exhibit their goods and services.

The package is largely targeted to 20,000 Hong Kong-based SME companies whose clientes coming from Russia, Eastern Europe, the Middle East, North Africa, Southeast Asia and the mainland.

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Morgan Stanely economist Wang Qing and JP Morgan chief economist Frank Gong both expected China exports in October could be slipped by as much as 20 percent despite a resilient export growth in September.

The warning came before China releases its macro date for October in the upcoming week. They said industrial output has slowed faster than exports, indicating that China economy was shrinking faster than expected.

Good news is inflation rate in China is easing continuously, according to Mr Wang. He noted that producer inflation (PPI)  and consumer inflation (CPI) were expected to stay around 7.9 percent and 4.3 percent, respectively. It provide a favorable factor for the China government to adjust its monetary policy.

Aliuser learnt that Alibaba ( HKSE 1688) has earmarked US 30 million on global promotion in an effort to help SMEs to expand its oversea market following a task force was formed in October.

 

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China’s key inflation barometers – CPI and PPI continue to show signs of slowdown in September, enabling the central government to exert more control over economic policy, stimulate domestic demand and loose price control on resources materials.

The latest figures provides a favorable environment for Chinese Premier Wen ‘s resolution to deploy his economic policies for the fourth quarter.

Chinese-Premier-Wen-Jiabao

Chinese-Premier-Wen-Jiabao

Photo courtesy of http://www.chinadaily.com.cn

Premier Wen policy boost

Premier Wen Jiabao, while addressing at the State Council last week, outlined his top 10 assignments which include: 

  • Develop Small and medium enterprise sector – encourage financial institutions to lend to SME and expand direct financing channels to them
  • Maintain stable trade growth
  • Strengthen domestic investment
  • Step up energy-saving measures
  • Increase fiscal revenue

Mr Wen also said China would increase tax rebates on textiles, labor-intensive products and high value-added machinery and electronics destined for overseas.

Dwindling CPI and PPI figures in September

According to the National Bureau of Statistics (NBS), China’s Consumer Price Index (CPI)softened to 4.6% in September, which was 4.9% in August, 6.3% in July and 7.1% in June. Food prices, which account for more than a third of the CPI calculation, rose 17.3 percent during the January to September period.

The Producer Price Index (PPI) rose 8.3 percent in the first nine months. In September alone, the PPI surged to 9.1% over the same month last year, yet is lower than 10.1% in August.

China Exporters, the mainstay of China’s economic growth, have also been hit, with growth in the nine months to September down 4.8 % from the same period last year. Suppliers are diverting their energy to open up business lines in China domestic market.

Alibaba forms a task force

In the middle of financial crisis, SMEs are already feeling the chill. Aliuser reckoned that Alibaba announced a task force last week to come for rescue. Led by David Wei, chief executive of Alibaba.com,  the task force is dedicated to deploy the group’s resources, initiating relief plan very soon.

 

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