The profits the listed companies earn from the loans

Until the end of July, the lowest interest rate of the listed companies was 12%, and the highest ones reached at 21.6% in the reports of their commissioned loans. The profits they earned from the loans are much more than they earn from the main businesses of the companies.

It is very hard for the SMEs to finance their own, but easy for the listed ones, which caused the liabilities between the two’s.  

Some listed companies were commented as the usuries who stealing the real economy. At the same time, the function of supervisor —–banks was weakened during the process of entrusted loan. “The listed companies act as the small banks is abnormal”, an expert said. There are high risks behind the high profits because the loans profits cannot be continuous for the companies.

Source:People’s Daily

Translated and edited by Yang Jingmin

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