Whether a private company can get a loan however depends more on whether it is in a sector that Beijing wants to encourage than on the company's expected profit margin or expected return on investment--according to Shih.
OK, but I think the banks do most of the Chinese economy's investing (and Beijing exerts a lot of influence on the nature of that investing by the banks).
Victor Shih (China scholar) says that employers in China mostly don't care about profit margins nor do the banks that lend to them.