Textile And Garment Industry: Relaxation Of Microfinance

How much loosening of microfinance can ease the risk of breaking up the capital chain?

"Hard won"

"It has been shut down for 15 days."

At noon on July 15th, more than 400 workers in Zhejiang Jiao Li socks Clothing Co., Ltd. waited for the payment of wages in the hot sun.

The reason for the downtime is that Zhang Zhengjian, the parent of "Zhejiang golden Wu group", was suddenly missing. "There is a serious financial crisis in Jin Wu."

Some employees say so.

Founded in 1994, Jin Wu group is mainly engaged in socks industry, clothing production and processing, and expands its business to hotel catering and agricultural comprehensive development. It is also the "top five" private enterprises in Dachen town of Yiwu.

"As of July 16th, Kim Wu had raised 298 million yuan to 8 banks."

Wu Senmin, vice mayor of Yiwu, said.

Another person familiar with the matter said that the principal loan of Jin Wu private lending was 800 million, with an interest rate of 600 million.

Obviously, massive private lending and high interest rates are the key reasons for Zhang Zhengjian's departure.

Unfortunately, Zhang Zhengjian did not have the chance to catch up with the "early bus" and overwhelm his last straw, the Zhejiang trillions of private capital that had been underground for years.

With the rise of wage costs, the appreciation of the renminbi and the decline of the US economy, SMEs are in urgent need of funds to "spend the winter". Under the circumstances that the central bank's monetary policy has not changed much, the active private capital can now be "right to the sunshine".

A policy has been taken to set up a small loan company and then to a village bank.

In July 17th, Zhang Huajian, general manager of Wenzhou Jindian investment guarantee, was running on another identity. "The Wenzhou Guarantee Industry Association is seeking more than 20 high-quality Guarantee Corporation to win an admission ticket. There are only 16 small loan companies in the city, and the gold point is ready to participate in the stock market by 17 million yuan."

Since the announcement of the release of small loan companies in Wenzhou on the 14 th of the month, a large number of private enterprises with large liquidity have been enthusiastic. Dozens of large Wenzhou enterprises, including Huayi Electric appliances, CHINT, Huafeng and senna, have been involved in the declaration.

In the entire pilot area of Zhejiang Province, Shaoxing, Ningbo and Hangzhou have also begun to declare small loan companies.

"This is the only legitimate path for private capital to take the right path at the present time. It has been very difficult to appeal for many years."

Zhou Dewen, President of Wenzhou SME Promotion Association, said.

At this time, the new round of macroeconomic regulation just reached the key point. The new data released in the first half of the year show that GDP and CPI have dropped, but they are still at a high level, while small and medium-sized enterprises are experiencing a "life and death crisis".

"Hurt is the most dynamic part of China's economy."

Bao Yujun, President of the China private (private) Economic Research Association, said that the policy release of small loan companies seemed to reveal the signal of correcting macroeconomic regulation: "tight, part of fine-tuning, rescue China made."

This can be found in the meeting of the NPC finance and Economic Committee concluded on the 16 th: the export situation is not optimistic, and the momentum of a larger decline in export growth and corporate profits is worthy of attention. We must grasp the rhythm and intensity of export regulation and prevent the over concentration of various unfavorable factors from causing a great impact on export enterprises. We should take positive measures to help enterprises tide over difficulties.

Obviously, the adequacy of funds has become one of the keys to the difficulty of many enterprises.

"Militia turn right"

High interest rate and high risk.

In an interview with reporters in Wenzhou, we saw that the enterprises that were short of money were crazy about finding money, which made the private lending mostly run on "one gross profit".

"You simply don't understand the temptation of temptation and risk."

Mr. Qin, a partner in a private lending company, was anxious to tell reporters, "so you don't understand the release of light once you see it."

The light is coming.

Following the joint guidance issued by the CBRC and the central bank in May on the pilot project of small loan companies (hereinafter referred to as the "guiding opinions"), in July 13th, the Zhejiang provincial government officially launched a small loan company. There were 111 places in the province to be approved, and loans could be launched before and after October.

In fact, as early as the beginning of 2005, the central bank decided to launch microfinance pilot projects in 5 provinces and autonomous regions such as Shanxi, Shaanxi and Sichuan. However, the central bank has no financial supervision and financial license functions, and small loan companies have been separated from the formal financial institutions.

Then in 2007, Hebei, Ningxia, Inner Mongolia and other places have also begun to try small loan companies.

By the end of 3, 24 small loan companies had been set up in Ningxia, and 13 small loan companies in Inner Mongolia.

Obviously, the introduction of the guiding opinions has undoubtedly increased the policy basis for small loan companies. "Despite the fact that there are 5 special admission tickets in addition to 11 places in Wenzhou, the competition is still fierce."

Zhou Dewen said, "every day there are more than 10 enterprises that go to the door to consult."

Wenzhou's investment manager of Guarantee Corporation and manager of MasterCard Credit Guarantee Corporation of Wenzhou told reporters that they are actively declaring small loan companies. The specific way is to guarantee the participation of the guarantee association.

Like Zhang Fulin, general manager of Guarantee Corporation, it is very rare that he does not apply for Guarantee Corporation. Zhang thinks he has to fight for a place in the Lucheng area and his own weight is still light, so he decided to participate in the stock market.

Reporters learned from the Wenzhou finance office and the county governments that not only small businesses, but also large enterprises are very active, and more than ten well-known enterprises such as Huafeng, Ruiming and Senna have applied for the main sponsor in Ruian, and Yueqing is also involved in competition among CHINT, Huayi, deli and other large enterprises.

"Executives at the company are very interested in setting up a small loan company," CHINT group manager told reporters.

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