Last year, 6 months, I have pointed out, loan sharking has quietly spread throughout the country, and iron and steel trade, many are involved in. During the second half of last year, loan sharking spread throughout the country, the steel industry has become one of those blood transfusion, the blood-is becoming a real estate. There are many steel trade, after the bank transfers the loan sharking. I think that this reselling sooner or later the Business funds to bad luck.
When loansharks spread social and moral values, it is a significant increase in risk when lending money, not only in the Downstream business, in the banking industry will also be trouble. Private money is that sooner or later the chain is broken, which groups will be a little deeper into sceptic. The first half of the last year of steel trade, money, and has thus become a generally affluent loan sharking risk of disaster areas. Since then, the banking industry began severe austerity, the steel industry in the money soon from the tightened. In the first quarter of this year, banks continue to tighten credit, especially in the steel industry trade groups, the last strictly loan loan simply stopped. In this case, the steel trade capital link is broken.
Due to the steel industry are mostly taken by means of financing the layers, forming a secured. A steel trade business scene, and it was on the scene, and banking will be more afraid, and continue to tighten the steel trade business loan, the loan until you clear off. Thus, to prevent steel trade, collective breach in the banking sector as a challenge.
According to the initial investigation: the first half of last year, in a steel trade business loans more easily be a few months, the real buyers of steel very few tenants loans, loans to one-half the steel stock and the other half through a trust company or broker to enter the real estate and in the futures, and other high-risk areas. Many people have no money to earn, but losses. According to the survey, the steel industry for the loan, many of them are disguised loan sharking. These sharks have entered a period of repayment, the steel trade, stock and, even more, does not have an inventory of arrears, only, and is often a steel trade route running and jumping, and even the thing. At this point, if there is no new money into capital, the steel trade link broken, probably inevitable events!
The complexity of the issue is far more than that. Vast majority of our long-term take iron steel trade, pad for liquidity, the steel industry's cash flow, cash flow is the Iron & Steel Works, a steel trade business that may affect the whole industry, once the steel trade industry groups funds link appears broken non-normal, it will inevitably lead to the outbreak of financial risk.
It must be emphasized that the steel industry, and a system of credit risk has its own reasons, but not completely stick to the steel industry trade body, long-term macro-economic downturn, the steel end-market demand, long-term depression which is an important factor. This past year, not only steel trade profitability decline, steel mills have no profit space, don't even have the cash flow. This kind of a business, in the banking industry is not willing to grant loans. And, on the other hand, the macro-control of the steel, and the business of the loan, the more it will tighten up the head, the steel trade is how to not die.
More recently, iron and steel industry collective issued a distress call for the banking sector. Recently, Shanghai's largest steel trade association - Fujian weeks Ning County Chamber Shanghai, open letter to all commercial banks, and the "passionate" statements are steel trade business groups, and the financial plight that banking indiscriminate tightening of lending, it will not only fight against steel trade business, will also be against steel, they will eventually trigger system against commercial banks, and financial risk.
Solutions to this serious situation is the only way to distinguish between an emergency: Banking in a comprehensive survey of the offense of fraud, you have to stop steel trade credit, credit recovery, but in the law-abiding of steel trade business loans is to continue to maintain, and to lower interest rates. It must be noted that the steel against usury, and the commercial banks can also be harmful. Last year, macro-economic recession, commercial banks also insist on floating interest rates on loans and persecute steel trade, looking for loopholes. It is now not all of the blame to the steel industry.
Although the current macro-economic recovery, but it is more than the steel industry has no money, and some are on an incoming inventory turnover, such steel trade, money is very tight, and link to return to normal loans. For them, there is a need to study special policy; and participation in the usury of the steel industry, but also the treated differently, as far as possible to avoid a large compliance cases occurred in the banking sector last year - the high interest loans to a modest debt.
Current macro-economic control measures have begun to shift to the economy, and an inflection point - there has been 5 months, long-term loans in the banking industry for more than proof of this is increased significantly. In the coming months, with high-speed rail and national-level large-scale infrastructure construction project, and sales of cars are also picked up the iron and steel products, demand will certainly recover terminal. As long as it does not mess with the new production, and strict limits, it is predicted that in the next few months, the steel industry will be slowly improving fundamentals, excess capacity and high inventory pressure will gradually reduce. At this point, the banking industry and the steel industry and trade to join hands to self-discovery, self-correction cannot be blamed.   Steel Trade banking business to continue to call for support, but also to eliminate black sheep of the banking sector, with confidence. I believe that as long as bankers to take positive measures, there is warranty, there is a pressure to be able to avoid the capital steel large broken links. The steel part of a business, and trade in the future. If you steel trade industry groups is not what has happened this year chain is broken, the systemic risk, financial risk is not in China.



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