Five Measures to support SMEs and Micro Business
Back to Actions of Solidarity-
Targeted support to specific sectors
We now offer express disbursement service to safeguard the prompt procurement of raw materials for companies producing anti-coronavirus supplies, drugs, vaccines and testing kits as well as food and agricultural businesses and logistic companies. We’re actively approaching them to identify their banking needs, and are expanding credit support and providing preferential loans to these companies.
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Double Lending Quota
We will double the lending quota provided to SMEs and micro companies by strengthening the cooperation with guarantors. Following the successful collaboration with Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs to support local SMEs and micro companies in Shanghai,we are undertaking similar initiatives together with major local guarantors in Beijing, Guangzhou and Shenzhen. During the epidemic, in an active response to local governments policies supporting SMEs and micro companies, we are closely working with local guarantors to provide preferential solutions such as renewing loans without repayment of principal in Shanghai and reduced guarantee fees in Beijing. These joint measures serve to ensure abundant supply to credit for SMEs and micro companies to get through the epidemic smoothly.
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Speedy approval -- dedicated “green channel” of loan approval
At the current critical stage of the epidemic, to ensure timely approval and disbursement of loans for SMEs and micro companies, we will advance the speedy approval process by setting up a “green channel” where dedicated credit approvers have been assigned to review loan applications to speed up the approval process for companies producing anti-coronavirus supplies, drugs, vaccines and testing kits.
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Preferential rate
Preferential lending rates will be offered to SMEs and micro companies that are directly involved in the fight against the epidemic, including those producing, transporting and selling anti-coronavirus drugs, medical supplies and daily supplies. Rates could be reduced by as much as 50 basis points to help reduce financial burden and minimise the impact on the macro economy.
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Strengthened digital services
HSBC digital banking services are available through multi-channels including HSBCnet, mobile banking and WeChat banking, covering the service of payments, settlements, as well as trade transactions. These digital services will ensure the seamless interaction with our customers so as to help them overcome the financial difficulties. At the same time, we will offer a strengthened hotline service, addressing inquiries regarding our digital banking 24x7.
SMEs and micro firms, an integral part of the Chinese economy, are facing huge financial and operation pressures as the result for the Novel Coronavirus outbreak. Difficulties in managing cash flows, supply chains, raw material purchases and labor costs are putting their business at stake. As an international financial institution deeply rooted in China, we feel obliged to fully support our clients at this difficult time. This is also one of the best ways through which we can contribute to the fight against the epidemic and to China’s economy.
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HSBC‘s five relief measures have been well received and widely applauded by a large number of SMEs and micro businesses. In the past few weeks, our team has received numerous enquiries and requests from our clients. Our commitment is to continue with our fast pace of delivering relief measures on the ground for our clients. This coronavirus epidemic has brought with it both challenges and opportunities. We’ll stick together with our clients and win the battle through solidarity and concerted efforts.
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Focus
Reaching Out In The Hour of Need: CIC Produces 10,000 Protective Suits A Day
The epidemic broke out so suddenly that Cobes Industries Co., Ltd. (“CIC”) transformed from holiday mode to full operations almost immediately.
CIC, which produces quality protective apparel, is a mid-sized specialist producer of surgical packs. Overnight, this mid-sized company was propelled to the front line of the fight against the coronavirus. The swift and devastating spread of COVID-19 has left front-line medical personnel with severe shortages of necessary supplies, particularly protective apparel. In the face of this shortfall, CIC sprang into action. By January 25, CIC had completed its emergency epidemic plan, and was ready to begin production; by January 27, CIC had completed calibration of four adhesive tape machines to manufacture protective gear, and had deployed its supplies and personnel, allowing maximum daily production of 200 pieces of clothing. On January 29, CIC completed an emergency purchase of 12 more adhesive tape machines; by the next day, production had soared to over 1,000 pieces. On February 3, the first convoy of lorries loaded with CIC’s donated supplies departed for Wuhan, including 4,000 sets of protective gear, and 5,000 disposable surgical gowns. CIC’s daily production has now stabilized at 10,000 units.
HSBC has facilitated CIC’s rapid ramp-up in production capacity to fight COVID-19 by approving an increase of RMB10 million in the company’s LOC, providing the company with a comfortable cash-flow buffer as it purchases the necessary equipment and raw materials.
This is a war against an invisible enemy, and it is testing everyone. With its emergency return to production, mobilization of its entire staff force, and expedited production of protective gear, CIC by taking meaningful actions has made a clear statement on the fight against the coronavirus---“I’m in.”
All-Weather Service: 2,000 Tonnes of Food Delivered Every Day
For ordinary people, one of the most effective protections against the coronavirus is to leave the house less often and refrain from gatherings. However, while being cooped-up at home, people still need to buy daily necessities. As the epidemic spreads, fresh produce delivery, as a form of consumption that requires no visit to brick-and-mortar stores, has played a crucial role in helping life continue as normal while reducing the risk of cross-contamination.
At this special time, when the whole of its industry is facing tremendous challenges in product supply, logistics and manpower, as well as the question of how best to protect employees from the virus, Miss Fresh has impressed customers with its reliable service.
“We have managed to complete 90% of deliveries within 2 hours, and we can guarantee same-day delivery without a single failure.” In the early days of the epidemic, Miss Fresh quickly formed a virus-response SOP and a system to supervise its execution. The company’s efforts bolstered its procurement and supply chain efficiency, and ensured every employee on the front line had sufficient disinfectant and protective masks. During this special time, Miss Fresh’s average daily vegetable delivery gradually rose from 500 tonnes to the current 1500-2000 tonnes.
Miss Fresh’s success story would not have been possible without the support of HSBC, with whom it has had a good credit relationship since 2019. Throughout the epidemic, CMB team of HSBC Beijing Branch and the hi-tech coverage team of HSBC China HQ have joined forces, providing dedicated support for large-scale procurement by Miss Fresh and helping the company maintain healthy cash-flow.
In the face of the epidemic, every individual is making their effort count. Together, individual actions have become a considerable synergy that benefits every one of us.
Heroes in Harm’s Way, Helping 118 Hospitals with Precise Testing
In the fight against the epidemic, in addition to the many medical personnel who traveled to Wuhan, a medical company dispatched many of its technicians to install and calibrate in-vitro testing diagnostic equipment sets to ensure they can work properly.
The company is a developer and distributor of clinical detectors and testing kits. Its products are applied chiefly in hematology, body fluid analysis, microbiology, clinical chemistry and rapid diagnostic testing. As a seasoned medical service provider, the company acted promptly in response to the COVID-19 outbreak. When the initial signs of the epidemic first appeared, it immediately increased its stock of supplies to be ready for unforeseen demand. After the full outbreak of the virus, the front-line battle field soon got mired in shortages of various supplies and medical professionals. To help relieve such pressure, the company, based on its own expertise, immediately dispatched a team of professional engineers to Wuhan where they provided the much-needed in-vitro diagnostic services for all front-line hospitals and made sure the 178 equipment sets deployed in 118 hospitals in Hubei all function properly. In this anti-virus battle where speed is of the essence, the company immediately deployed its hematology-related and immunology-related in-vitro diagnostic equipment at Leishenshan Hospital to save lives by providing accurate data for the testing and monitoring of critical cases.
The epidemic spawned a surge in demand for funding among corporates including this one. Coincidentally, HSBC at that time was launching its package of financial relief measures to help SMEs and micro businesses fighting the epidemic. The Bank’s management quickly green-lit a temporary trade finance-specific addition to the client’s line of credit (“LOC”), which helped the company open its letter of credit for supplies procurement within 3 days. Soon after, in order to provide greater support and ensure the client’s continued access to sufficient working capital, HSBC’s credit approval department fast-tracked a dedicated working capital LOC for epidemic-related causes. As of now, this company has been included in the first batch of companies named as “Key Defenders Against the Epidemic” in a list drawn up by the Shanghai government, and HSBC will continue to provide support.
With the epidemic at a critical stage, we are committed to providing financial support at the flash points in the fight against the coronavirus, anticipating our clients’ needs by putting ourselves in their shoes, and providing the most timely and highest-quality service.
