Quick Action to Support SMEs and Micro Business, Five Measures to Facilitate Return to Production Mode

With lightning speed, HSBC rolled out a new programme of five key measures to support companies fighting on the front line against the coronavirus and provide financial relief for SMEs and micro businesses. The programme, which includes doubled lending quotas, preferential lending rates, speedy approvals and targeted support to specific sectors, has been well delivered on the ground over the past few weeks in a timely response that allowed SMEs and micro businesses to kick-start their return to business as usual. HSBC is leading the charge in financial sector's fighting against the virus.

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, MissFresh 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, MissFresh 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, MissFresh's average daily vegetable delivery gradually rose from 500 tonnes to the current 1500-2000 tonnes.

MissFresh'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 MissFresh 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.

Zhao Lihui, Country Head of Business Banking, Commercial Banking of HSBC China said, "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."

Five Relief Measures Provide Timely Support for SMEs and Micro Businesses

The darker the hour, the brighter our resilience and courage shine through. Throughout this crisis, thousands of SMEs and micro businesses have stood firm on the front line. Supplies have been transported in different ways from every direction, and individual efforts have swollen into a wave of support. Every batch of supplies sent represents faith in, and hope for, the day the epidemic ends.

HSBC extends its respect to those businesses fighting on the front line, and commits to stand with them to overcome the menace of this scourge. HSBC will do its utmost, leverage its financial services to bolster SMEs and micro businesses against the fallout of the epidemic, and help protect the stability of the real economy.

HSBC China Announced Roll-out of Five Key Financial Measures As Early As February 10. Battling Through Tough Times In Solidarity. HSBC China Helps Minimise NCP Impact for SME Customers with Five Measures:

  • Lending Quotas Increase
  • Preferential Lending Rates
  •  Speedy Approval Targeted Support to specific sectors
  • Strengthened Digital Services

HSBC stands firmly together with our corporate clients, leveraging financial measures to help protect the economy and normal business operations. HSBC will continue to support all companies, SMEs and micro businesses in particular, to re-define 2020 as a year of hope.

Contact us

Commercial Banking Service Hotline

400 821 8878

This hotline serves only commercial banking customer. If you are global banking customer, please directly contact your client service manager.

 

Leave your message

 


HSBC China WeChat Subscription Account


A thought leadership content hub to share market trends, expert insights, industry reports, and global sponsorship news.
Please scan the QR code to follow it.



HSBC China Corporate Banking WeChat Service Account


Fast online banking service and 7X24 client service by intelligent virtual assistant to facilitate our corporate clients a way of managing accounts.
Please follow it and start the online banking journey!



HSBCnet Mobile App


iPhone Android

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.