SHENZHEN Gintian Industry has applied for emergency loans available to enterprises as part of the State Council's recent move to help ease the credit squeeze. Executive director Shen Yigang said in Hong Kong yesterday the loans would be in the form of bank borrowings, but did not give details of loan amounts or when they would be given. Chinese enterprises are facing the worst credit crunch in years because of the mainland government's tight monetary supply policy. Two weeks ago, the State Council came up with a rescue programme and ordered regional governments to subsidise enterprises by nullifying interest incurred by them from bank loans. It is unclear how the Shenzhen company will use the loans, if it decides to take any. The company is placing more emphasis on garment operations, which will see its reliance on property development reduced. As a cost-saving exercise, the company will move all its garment factories in Shenzhen to Hubei province, China's cotton producing area. The remixing of the company's portfolio comes as China moves to impose a capital gains tax on property development. But Mr Shen said details of the tax had not been announced and that its impact on the company would be minimal. He said the proposed capital gains tax would curb speculators rather than legitimate developers such as Gintian. Mr Shen also sought to clarify the misunderstanding over the company's annual general meeting in Shenzhen last month. He said the company's payout proposal had not been rejected because the original proposal had never been put up for vote. The original proposal, decided by the directors, was put up for discussion among minority shareholders rather than for voting, he said. ''The original proposal was meant to give more cash to shareholders, but after taking into account the minorities' view, we decided to change the mix of cash and bonus issues.'' Eighty per cent of shareholders voted in favour of the adjusted proposal, he said. The Gintian board originally proposed a one-for-10 bonus issue, a cash divi-dend of four yuan (about HK$3.56) a share and a two-for-10 rights issue at 5.3 yuan a share. However, minority shareholders proposed to adjust the offer to a two-for-10 bonus issue, a cash dividend of one yuan and a one-for-10 rights issue at 4.3 yuan a share. The directors hold about 20 per cent of the company. A further 10 per cent is held by employees, and 27.5 per cent by foreign investors in the form of B shares. Mr Shen said the company had no state-held shares at all.