Has Shenzhen Shilian Microfinance closed down?

1. As the main financial service of the World Bank, the World Bank small loan was established as early as April 12, 2007, with a registered capital of1500 million yuan and a paid-in capital of17 years. Headquartered in Shenzhen, its main business scope is micro-loan business (unable to absorb public deposits). From June 5438 to September 2020, the net cash flow generated by the World Bank's operating activities decreased by 50.57% year-on-year. One of the main reasons is that the financial services business continues to strictly control risks and steadily lend, which reduces the net cash flow generated by loan recovery and lending by 35 1 10,000 yuan year-on-year.

2. In fact, as early as this year's semi-annual report, World Bank indicated that it would control the scale of World Bank's small loans, mainly due to the uncertainty of the market environment and the surge in diversified customer demand during the epidemic. It is worth mentioning that many small loan companies cannot expand their business scale because of the limitation of leverage ratio. During the epidemic, many local financial offices issued a document calling for the sustainable development of small and medium-sized enterprises, and the leverage ratio of some small loan companies can be relaxed to five times. But in fact, some small loan companies cannot make full use of the leverage ratio of 5 times. At present, there are more than 7,000 small loan companies in China. Due to many restrictions in the industry, some small loan companies continue to lose money or have to close down, and some have no business at all.

3. The epidemic has seriously impacted small loan companies and SME customers served by small loan companies. Small and medium-sized enterprises can't repay their loans in time due to the sharp drop in income, which has caused certain overdue and many loans can't be recovered on time. In the uncertain market environment, World Union small loans are also being cleaned up and started to shrink in scale. In fact, many small loan companies are already controlling the scale.

Moreover, since 2020, strong supervision has once again pointed to small loan companies. On August 20th, the Supreme Law officially promulgated the newly revised Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, and finally determined the upper limit of judicial protection of private lending interest rates based on the one-year loan market quotation (LPR) published by the National Interbank Funding Center on the 20th of each month. A large number of people believe that it is a general trend for small loan companies to apply the provisions of the Supreme Law and the downward trend of loan interest rates.