Hundreds of Chinese firms reportedly seeking billions in loans to soften impact of virus outbreak

These includes prominent names such as Xiaomi, Meituan Dianping, and DiDi

Reuters is reporting on the matter, citing two banking sources, as to saying that more than 300 Chinese firms are seeking bank loans totaling at least ¥57.4 billion ($8.2 billion) in order to soften the impact of the coronavirus outbreak.

It is said that the firms were either involved in the control of the epidemic or had been the hardest hit by the outbreak situation.

The sources also say that the companies are likely to get fast-track approvals and preferential rates but that the banks will have the final say on any lending decisions.

Mind you, we’re probably still in the early-to-mid stages of the coronavirus outbreak situation (if you believe talk of a peak in mid-to-late February) and this will certainly throw out a lot of China’s efforts to try and stymie risks in the financial system.

The worry is that there could be smaller businesses that just go under water because of the current situation and that creates a problem that trickles back down to the consumer level and then back towards the main corporations.