On May 22, 2013, 21cbh.com, a professional financial news website under the 21st Century Media Group in Guangdong Province, published an article titled, “The Source of China’s Financing Chaos.”
According to the article, a large number of small and medium enterprises have two or even more sets of financial records, one of which is used only for applying for bank loans. However, this set of financial records is not accurate in presenting the true financial situation of the enterprise. As a result of this practice, banks and trust companies would rather lower their interest rate for large enterprises than lend money to the small and medium enterprises.
Source: 21cbh.com, May 22, 2013