Copyright @ 2015 limdoo.com All Rights Reserved Chengdu LIMDOO Enterprise Management Consulting Co. Ltd.
Looking back on the course of thirty years of China's reform, undulating years always ultimately "Wenzhou" word, the ebb and flow of the crowd is always ultimately "Wenzhou businessmen" this group. Recently, a fall from a height of one life, one disappeared and Yuandun overseas businessmen, gradually an extraordinary private credit picture show in front of people, and Wenzhou has once again become the focus of public opinion.
Chain huge private lending
Wenzhou core of this crisis is actually a crisis of private lending, more accurate to say that it should be civil usury crisis. The rapid development in Wenzhou usury, because of the need to explore it from a higher level to look for.
First, the Wenzhou area, has always been known for private economic activity. A lot of the private economy in the process of rapid development, not only of their own continue to accumulate, and more need to use external funding to achieve rapid expansion of production scale and expand the business.Thus, a large number of enterprises require external credit support their own development, which is what led to the local credit market is extremely well developed fundamentals. Moreover, due to insufficient supply of long-term credit banks, as well as inherent in Wenzhou, the local coordination of suppliers from the wind, but also makes the local private credit is huge, very active.
Second, many manufacturing-based enterprises in Wenzhou, has been trying to implement industrial upgrading and industrial restructuring, but in general, with little success. Still a large number of private enterprises in Wenzhou also focused on export-oriented processing industry, the overall level of profitability in general, by the trading environment and a greater impact on the exchange rate. With the gradual lifting of the RMB exchange rate, Wenzhou enterprises already slim profit margins again be diluted, but by the impact of the financial crisis, making the orders from the US and Europe plunged. The pressure on the business of a large number of business owners in Wenzhou, have to find new sources of revenue, and became the capital level of operation with a large number of private capital in Wenzhou businessmen choice.
Again, in order to "Chinese Jews" and known Wenzhou businessmen, good grasp business opportunities, but also good at creating opportunities. In the case of private enterprise entity margin decline of traditional industries, have turned to short-term speculative profiteering industry. To the controversial "Wenzhou real estate corporation" as the representative of a large number of Wenzhou private capital into the large-scale real estate, securities, commodities, minerals, precious metals and other fields, especially in the real estate market, whether it is the name of the real estate development business, or as an individual real estate investments are gradually enabling capital away from business management to enter into a "virtual economy."The industrial capital into the stock market, property market, futures market, leading to the financial needs of private enterprises into speculative capital requirements. This fund has a higher risk of demand, but also can withstand a higher cost of capital. In the real estate market have been rising trend, but also full of stimulating the rapid Wenzhou private credit markets, credit, interest rates also will rise, and some of the annual interest rate of private lending is sometimes as high as 180%.
However, the continuation of usury and money to maintain the chain, relies on constant supply and profits growth in the real estate market continues to move up a lot of money. With the adjustment and changes in national macroeconomic policies, increasingly stringent credit policy, credit scale and gradually tightening, more important is the growing real estate market cooling, when a lot of hoarding in the real estate market in this loan can not be achieved as quickly added, capital chain the rupture has become inevitable.
In fact, a large number of borrowers in Wenzhou, either leap of "brave" or go abroad, "hermit", the vast majority are owned Industrial business owners, and even lack some sub-sectors of the leading enterprises . It is precisely because of their capacity as such, be possible to allow them to do collateral to industrial, financial institutions, and has won the trust fellow, get a lot of credit, most of the early credit funds are solely used for the development of supporting the Industry a. However, when the Industrial not achieve the expected value, or the value may have a faster time, the flow of capital will become apparent.
Moreover, many business owners are not the end of the chain, a large number of bank loans, private loans, but also through their hands, to higher profits are down home loan to, and even some state-owned enterprises, government officials also joined the army private lending . In particular, some state-owned enterprises, due to the interest rate policy of "dual system", allowing them to lower interest rates at a relatively small and medium enterprises to obtain bank loans, but these loans only require a simple resale, you can earned higher profits. In this connection, an intricate, indeed affect the whole body of the chain of funds this form.
The front end of the real estate market has been hot, on the one hand has brought extraordinary benefits to all subjects throughout the chain, on the other hand also to become more crazy usury. In a serious departure from the actual high interest rates, which are a part of any minor mishap, are likely to lead to a domino-style collapse. And when one of life fall, one by one boss flee when overwhelmed by it all, "the last straw" has finally arrived.
Select the crisis behind
Wenzhou such a critical situation, it is impossible not to cause high-level attention, including finance ministers, central bank governors, the CBRC Chairman such as a public financial officials, but also personally under the leadership of Prime Minister Wenzhou, research the facts, explore the crack of the Road. Although the State Council executive session immediately nine measures of credit from the financial burdens for SMEs and fiscal policy, and Zhejiang Province, Wenzhou City, also introduced a series of policies and measures to carry out the "self." However, there is about a "save and not save," "How to save" the discussion has become increasingly intense.
I think: the point of view or from the country as a whole in terms of the local economy, and reasonable "Save Wenzhou" are necessary, it should be, otherwise it is likely to lead to a domino effect in the field of the country. However, the way to break must start from the root of the problem, not nowhere near enough, otherwise the short term, although relief can play the role, but it might be a bigger crisis brewing.
In fact, the core of this Wenzhou credit crisis in the financial markets and the real economy reform hollow for two reasons.
On the one hand, it is lagging behind the reform of China's financial market, which leads to abnormal development of the private lending market. For a long time, loans of state-owned financial institutions have implemented the so-called "dual system", which is a product of incomplete market. Statistics show that: state-owned enterprises contributed to economic growth rate of about 40%, but consume 80 percent of total loans of financial institutions, on the contrary, private enterprises contribute to economic growth rate of about 60%, but only enjoyed loans from financial institutions 20% of the total. It is scarce in SME loans, is the major cause of a large number of private credit rampant.
Moreover, due to the long-term lending rates in the non-market-oriented state, high inflation, monetary tightening moment, financial institutions and lending rates far below the "equilibrium rate" market-oriented state. Only a simple supply curve can be drawn on the market situation "for far less than the demand." Thus, a large number of enterprises are turning to seek funds from the people also are not so strange.
In addition, because of the lack of long-term supervision for private credit, resulting in private credit has become almost crazy usury. It is estimated that the total amount of private credit borrowers, already accounts for about 40% of total domestic credit aggregates. While private credit, has been the lack of effective supervision and reasonable guidance, resulting in profit-driven madness, usury has become inevitable speculation.
On the other hand, the real economy is hollowing out the important reasons Wenzhou credit crisis. In this regard, Wenzhou crisis is just a microcosm of the country. Stocks in the referendum, national real estate tide, the loss of funds from the real economy is becoming increasingly serious. Due to the work of the author, exposed to a lot of owners of small and medium enterprises in Wenzhou, deeply felt the serious consequences of the real economy brought hollow. Many business owners in Wenzhou in the process of communication with the author, the expression is too unbearable weight of the external market environment, want to give up the idea of business management business at hand; and, in the face of its own cash on hand and bank loansIs also actively looking for quick "money" approach. It can be said, in between a large number of Wenzhou entrepreneurs are filled with confusion and impetuous emotions. Especially the soaring property market, even more so the real estate market has become their first choice, a lot of money into the real estate industry, Hangzhou, Shanghai and across the country, all over the "Wenzhou real estate corporation" figure.
Decline in the competitiveness of the real economy, accelerated the exodus from the real economy, the result is a negative trend of strengthening the capital! Thus, China is currently not shout industrial upgrading, not simply tilt taxation, reshaping traditional manufacturing competitiveness is the top priority! Wenzhou credit crisis, SMEs, reflecting the current situation of China's manufacturing industry, the system is not a cure-standard practices and unhelpful, reshaping manufacturing vitality force without delay!
Cracked road Wenzhou credit, can not be simply increasing the size of credit, or else a lot of civil usury, the final can only pay the state, only all taxpayers, so that a large number of suitors usury country, the Bank and even kidnapping for economic policy. The real crack of the Road, is should the credit crisis as an opportunity, from the financial system led to the credit crisis and economic operating environment to begin.
In terms of the financial system, first of all, we must strengthen the number and proportion of loans to private enterprises, small and medium micro enterprises tilt efforts to ensure protection of the viability and the real needs of the financial needs of SMEs; secondly, the gradual reform of the financial system, the "interest "market adjustment of the compression private credit" for rent "space; in addition, but also to strengthen the management of private credit, carding, norms, and actively guide the private credit adjustment, so that it can truly serve the real economy, rather than become a paradise for speculators usury.
But more importantly, the country's overall economic environment from start to create a favorable environment for the development of the real economy, for small and medium micro enterprises to create a good living space, which is a top priority to crack crisis, is also true for SMEs to provide effective support for the development of the core.
In the policy environment, strengthen fiscal policy efforts to support SMEs, financial institutions, and security of space for reasonable support in loans to SMEs, and actively create the development of SMEs. Moreover, we must protect and maintain the economic operation of the basic law. From the start of many aspects of reform, reduce administrative bodies at all levels of rent-seeking space, simplify examination and approval procedures, service-oriented SMEs, in order to create truly do industrial environment.
In terms of national industrial development ideas, but also attaches great importance to the importance of the real economy to the real economy as the core of the national industrial development policy by actively guide and assist taxation policies to promote the rapid and orderly development of the real economy, as SMEs create "their talent" stage. In particular, the implementation of regulatory policy must firmly and real estate industries, comprehensive inhibit the development of speculative trades, guided return of funds to the real economy.
For small and medium micro enterprises, should continue to be business management as a fundamental, seize and firmly rely on the real economy to build its "Founding of this." Business owners also have to withstand the temptation to see the long-term, look at Fortune 500 companies, many heritage several years of "century-old", and both are non-speculative industry as a fundamental, because of the non-speculative and long-lasting.
Moreover, with the further adjustment of the market environment, SMEs must achieve a reasonable use of funds. On the basis of business management, based on the funds invested to strengthen the competitiveness of the industry, such as technological innovation, product innovation, management innovation, and so on, these will really only for the development of enterprises, to achieve a comprehensive help, help enterprises to embark a stable and lasting development.The author of a Wenzhou entrepreneur friend, is a high degree of attention to their own product upgrading and technological innovation, invest a lot of money for research and innovation related. Although the overall external environment gradually deteriorated, but because of its product innovation and improvement, has earned more external orders, affected by the financial crisis and the current credit crisis is minimal.
Wenzhou crisis, precisely because the real estate industry speculation disorder, resulting in a lot of capital flows virtual field; it is because of the deterioration of the environment of the survival and development of SMEs. Therefore, we must take this as an opportunity to further reform of the financial system, further serve the real economy, effectively creating a good environment for the development of the real economy. No country, by speculative industry become a world power, no company can achieve Everlasting, the real economy is the real foundation of a nation, the real economy is the basis for the development of enterprises by speculative operations.
Copyright @ 2015 limdoo.com All Rights Reserved Chengdu LIMDOO Enterprise Management Consulting Co. Ltd.