Thought Candy Industry Financing Environment Variables

  "Chinese Candy": We know that the first outbreakfinancial tsunami, many international investment bank
of the U.S. financial crisis has on the world economywent bankrupt, closed down or been seriously
had a major impact, although the impact for the realweakened, and its investment in the Chinese market
economy is not so obvious, especially for themust also affected, candy companies in this
relatively closed domestic market, then we would likespace-time context, would like to get them the
to ask yes, this financial economic fluctuations causedmoney is more difficult; Secondly, from the candy
by conduction to the time about how long theenterprises themselves, even if the period of
domestic, especially for some domestic industries,economic prosperity, there is no operating
such as the candy industry. listing on the implications.characteristics of the candy companies are not
By the U.S. sub-prime crisis affects the global financialsubject to Venture Capital favor, and now this stage,
tsunami has engulfed the country's financial systembut is a candy companies from different segments of
to those caused tremendous damage to the Wallproduct development to marketing-oriented business
Street financial giant Bear Stearns, Merrill Lynch,model and a series of soft and hard power test.
Lehman Brothers, AIG and so suffered a severeThird, the private financing, since the development of
blow, in which the United States Lin and LehmanChina's market economy, private capital already has a
Brothers almost overnight, or be acquired or beconsiderable scale, so-called "possession of wealth
forced to file for bankruptcy protection. It should beamong the people", these abundant private capital
noted that, though, this is spreading in the financialhas a very sensitive and profitability, "smell" in the
tsunami, will be in U.S. dollars as a link to the worldproperty market, the stock market boom, which
financial system to have much trauma, and now it ismass market, pushing up prices after the fast
difficult to gauge, however, at present we can seeshort-selling to flee, or to "usury" in the form of
that, this the crisis from falling house prices, to peoplefinancing to a number of blocked and normal
on the transfer of assets appears to be safe, theshort-term credit for SMEs, be subjected, and to
real economy can not escape the catastrophe, andlearn effective strength of SMEs until the company
its resulting impact of capital outflows, the marketoverwhelmed them with foreign similar to hedge
recession, liquidity crunch, currency devaluation andfunds and other investment capital, together
other forms used by many emerging economies, Theconstitute the territory of China's underground hot
strong perception.money, its market economy or a benign operation of
If the trend of re-transmission of this crisis continues,the enterprises themselves, "hedging" effect
will also be bound to further aggravate the economicsufficient to cause discoloration while ago, its
turmoil in emerging market countries, I just can notknock-on effects on the manufacturing sector has
stay out of China, the scenery is fine? Indeed, sobeen the market Zhashe , the world's second star
far, China has not because of this global financial crisisenterprise in Zhejiang Asia leap Group's "usury" as
is greatly compromised. However, according toevidenced by the financing of the War, so candy
National Bureau of Statistics has just released by thecompanies the choice of private finance must be
national economic indicators show that the first threecareful, and then no way out and do not rashly
quarters GDP9.9%, in the third quarter were downinvolved, because the , in the larger environment of
GDP9.0% increase in the single digits, or aroused theglobal recession, companies operating conditions of
vigilance of all walks of life. In particular, exportsthis on the worrying, you have to pay for private
decline, leading to China's export-oriented industriesfinancing of what means high interest rates?
and the growth of enterprises are facing cash flowFourth, bank loans, in theory, in the past was mainly
difficulties and pressures, did not warrant optimism,due to tight money market liquidity surplus caused by
tens of thousands of small and medium privatean overheated economy, and now, under the impact
enterprises (mainly OEM-based exports andof the financial tsunami, the economy suddenly
labor-intensive enterprises) bankruptcy and liquidation,cooling operations, liquidity crunch, the central bank to
and barely survived some of the companies are alsotake positive monetary policy is to increase financial
underemployed, capital chain tight, companiessecurity for SME development and reduce the
precarious fate.threshold for small business loans and burden are in
This article published in vPro | boraid |line with the current situation of the wise, but that
Needs to be emphasized is that I think that this crisisdoes not absolutely mean that candy business bank
will not fully transfer to China and caused the collapseloan financing will become easy easy. I think that the
of China's economic fundamentals, the short term,central bank's policy only applies to the surface there
this global financial tsunami, major impact on Chinais a positive guiding role in commercial bank lending fell
also in the trade. Although, China's stock market nowthe specific business hours, and now the operation of
is a bad, low broad market continues to shock, butbanks has been fully market-oriented, and market
because of China's capital market is relatively a formdiscipline will only lend to those who requested their
of semi-closed operation, which in a short time byfunds are readily available in sustainable development
the impact of international financial markets is also apotential and a considerable strength of enterprises.
relatively controllable range. So, for China's foodFifth, I would like to suggest that people who have
industry is concerned, most of the enterprisespotential and strength, have their own unique
belonging to the traditional candy industry, small andcompetitive advantage in small and medium sized
medium enterprises, rather than technology sector,candy business, the best way to use the market to
does not belong to a new economic model types,solve their financing problems of the tsunami crisis in
little can be listed overseas, and its IPO will generallythe financial markets, we do traditional market, On
choose the SME board, As a result, the domesticthe one hand be able to stand firmer in a crisis, went
candy business listing, or to see whether the key toeven further, on the other, but also for the financial
success in their main business operations and financialtsunami and the economic crisis, the rapid
position is healthy and stable is good, perhaps shoulddevelopment of business accumulating strength, I will
be the one goes, worry about a few happy few,be in this form of financing is defined as "channels of
specific cases of two types: of the main market tofinancing." All along, candy candy enterprises,
domestic-based candy company, not directlyespecially small and medium enterprises survive, rely
affected by the General Assembly, the impact ofon traditional channels of distribution agent model, but
international financial tsunami, but its share price afterin fact, the current market, the nature of the
the listing of the performance, of course, to a largeecological changes that have taken place, the
extent will be affected by the market environment,traditional model of distribution of agents is constantly
particularly the financial and capital marketbeing joined, Direct chain operation model such as
environment , because institutional investors and largesubversion, and more online shopping, direct
investors confidence in investing is always cold andmarketing and other emerging e-commerce and the
heat according to the market arising from high andrise of direct marketing model. Candy companies not
low volatility; while the main export market is theonly in the 34 below market intensive farming up
export of candy companies have been hit on thetheir traditional channels, but also to seize the
extremely serious, first of all to face cash flow dryingopportunity to better the new market structure
up risks, the financial situation of embarrassment,under the support of eco-business channel for the
followed by a return to the domestic market nor thefuture development of the emerging model for the
advantages of favorable factors, lack of brand, lack12 competition in the market laid out their own
of marketing, lack of real market sales team, lack ofchannel access, but also for the future market as a
funding chain security, etc., listed only tend to be awhole a good basis for consolidating the upgrade.
beautiful dream .One possible approach is to concentrate its resources
"Chinese Candy": At present, the domesticin product development to form its own
confectionery industry, mostly small and mediumcharacteristics, it is best to create a new industry
enterprises, this event for the candy businesssegments candy category, and foster and create a
financing channels, the impact is mainly manifestedfinished product class brand; in marketing and sales
specifically in those areas? From the central bank'spromotion of the system architecture, the outside
policy is to reduce the reserve rate the supply ofthe brain can integrate the best resources to help
capital to expand the market, does it mean thatbuild out their own marketable channel model, for
candy companies to obtain financing from banks isexample, in the channel level, and vigorously promote
easier than some time ago.the franchising business model, integrating a number
Right by small and medium enterprises predominantlyof channel resources and their formation of a
Chinese candy, the journey of their development,strategic partnership to absorb the maximum extent
financing, access mainly in the following few:possible to join providers, their representative, piled
First, as mentioned, IPO listing and financing, thesand into the tower. This will not only be able to
specific impact will not go into.accumulate a considerable short-term funding to join,
Second, VC or PE risk financing, such financing, thebut also a good way to strengthen its profitability,
reasons for the success of complex, from the bigcash flow to ensure that funding problems will
environmental stresses, due to the impact of thenaturally be solved.