Global slowdown threatens
millions of jobs in China
Kong, Oct 19 (DPA) Up to 2.5 million people could lose their
jobs in the Pearl River delta, covering Hong Kong and parts
of southern China, by January as a result of the global economic
slowdown, a media report said Sunday.
financial crisis could also bankrupt one-fourth of Hong Kong-owned
small and medium-sized enterprises in the next three months,
said the South China Morning Post quoting local business group,
the Federation of Hong Kong Industries.
flow-on effects in Hong Kong will be drastic. It will hit
the banks, the service industries, everyone," said federation
chairman Clement Chen.
are very, very worried about our businesses. Our feeling for
the medium term is grave and we believe the recession is going
to last for some time," Chen added.
said banks were cutting overdrafts and other credit facilities
which meant companies found it difficult to pay suppliers
and staff as exports fell.
are appealing to the banks not to take the same line with
everyone and to examine each business on an individual basis,"
companies have recently said they would close down.
1,500 staff of Hong Kong-listed electrical appliance maker
BEP International in Shenzhen, which borders Hong Kong, will
lose their jobs Monday (tomorrow) when their factory closes.
Hong Kong's third-biggest appliance store chain, Tai Lin Radio
Services, shut with the loss of 260 jobs, barely a week after
U-Right International Holdings, a garment maker and retailer,
went into liquidation throwing hundreds out of work.
6,500 staff of Hong Kong-listed toymaker Smart Union were
also left unemployed when the company went into liquidation
Hong Kong government said Saturday that it would give more
financial support for small and medium-sized firms. That includes
a loan guarantee package that can be used for operating expenses
in addition to capital expenditure.