China Taunts the World: Tells Banks to Lend to Steel Exporters as SOE Reports Massive Loss

N&O: China tells banks to lend to expand steel exports
Regulators told Chinese banks on Thursday to finance steel exports to help reduce a supply glut in a move that could worsen trade tensions with Europe and the United States.

Beijing faces pressure from the United States and Europe to stop what they complain is a strategy of trying to clear away a backlog of steel by exporting at unfairly low prices. Washington imposed anti-dumping duties last month on Chinese steel.

The latest order to finance exports is part of instructions from the Chinese central bank and financial regulators to lenders to support the overhaul of state-owned steel and coal industries.
Meanwhile, Chongqing Steel just announced a 6 billion yuan loss, equivalent to 300,000 yuan per employee. EO: 60亿元巨亏重压 重庆钢铁闯关
For a long time we have been insisting longevity lead to the relocation of the plant in terms of Chongqing Iron and Steel into a part of the point of Chongqing Iron & Steel workers today, two weeks ago the company exposed as a general astronomical huge loss of nearly 6 billion yuan, has erased the last vestiges of their company's future fantasy. "For heavy steel, this is not just a disgrace." An unnamed Chongqing Iron & Steel employee told the Economic Observer newspaper that Chongqing Iron & Steel has no escape route.
The company's executives have been removed:
Chongqing SASAC director Hu occasion to heavy weight Steel Group research, is already the saying is very straightforward: "Heavy Steel Group faced a test of leadership must understand the current grim situation."

In the outside world, many people accused of Chongqing Chongqing Iron & Steel has become the largest corporate zombies, suck each year by the government's "blood" (huge financial subsidies) for a living, easily lead to social stability and shutting down factories, government financial deficit will not shut down .

The latest news occurred on April 8: Chonqging Steel Group chairman, party secretary, and secretary of the Discipline Committee Yuan Jin Fu were dismissed from all posts.

Yuan Jin Fu has served as director of Chongqing Iron and Steel, heavy steel group's third in command, in Chongqing Iron & Steel working for twenty years, many of the Yuan Jin Fu heavy steel workers were dismissed by surprise. At April 6, Yuan Jin Fu also accompanied the Deputy Mayor of Chongqing Wengjie Ming attended the Chongqing Iron and Steel Group and South Korea's POSCO cooperation signing ceremony.

March 31, 2016, Chongqing Iron & Steel announced the 2015 annual financial report, in its annual report, operating income of Chongqing Iron and Steel 83.5 billion yuan, down 35.8%; net profit attributable to shareholders is negative 5.987 billion yuan, about 6 billion yuan.

In the 2015 report, the management of the Chongqing Iron and Steel huge loss attributed to industry issues, said the domestic steel due to serious excess capacity, the steel market continued to deteriorate in the annual report, steel prices fell sharply, the domestic steel industry have faced enormous pressure on the operation .

Before Yuan Jin Fu was removed from office for three years, Chongqing Iron & Steel has replaced three chairman. David Liu, chairman of the latest term in late 2015 to perform their duties. Continuous replacement of senior management, it seems to no avail, on the contrary make Chongqing Iron & Steel produced a greater amount of loss.

As the actual controller of Chongqing SASAC may also have been aware of the problem. Hu occasion right weight Steel Group research indicates time, Chongqing Iron & Steel Group to plan good "Thirteen Five" transformation strategy turnaround program, seize the time to study how out of the woods, how restructuring and development, how to promote reform.

March 29, Chongqing Municipal Standing Committee adopted the "Implementation Plan on deepening the reform of municipal state-owned enterprises," the reform of State-owned Chongqing will be a gradual manner.

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