The Wave Of Zhejiang Businessmen'S Collapse Has Sounded China'S Economic Alert.

In October 11th, the media in Zhejiang reported the bankruptcy of the largest private enterprise in Zhejiang Shaoxing, Zhejiang Hualian three Xin group.

"Hualian three Xin" has Asia's largest and second of the world's PTA (a chemical product used to make polyester) production base, its shareholders include the well-known listed companies, "Hualian Holdings" (000036) and "Huaxi Village" (000936), the total assets of the total size of 11 billion.

The other two shareholders are Shaoxing's famous enterprises, "prospect group" and "Gabriel group", which are among the largest enterprises in Shaoxing.

Among them, the Outlook Group's "prospect shares" and the Gabon group's "Wing Lung industries" are all Hong Kong listed companies.

According to the materials reported to the government by three Xin Lian, the debt gap is as high as 7 billion 282 million yuan, involving dozens of domestic commercial banks besides dozens of domestic enterprises.

At present, Zhou Zhenmin, vice president of the group, has been controlled by Shaoxing police. Another major shareholder, Sun Li Yong, chairman of Gabriel group of Zhejiang, has lost contact. Unconfirmed news that he has fled abroad.

But only 4 days ago in October 7th, Shaoxing's "Zhejiang Jiang long holding group", the biggest printing and dyeing enterprise in the country, went bankrupt.

Its "China printing and dyeing" listed in Singapore was suspended in Singapore at 14:20 on October 8th local time.

Jiang long holdings is a large printing and dyeing enterprise integrating R & D, production, processing and sales. It has a number of enterprises, such as Zhejiang Southern science and Technology Co., Ltd., Zhejiang Jiang long textile printing and dyeing Co., Ltd.

Only its subsidiary, Jiang long printing and dyeing sales in 2005 amounted to 600 million yuan, and net profit reached 70 million yuan.

It is said that the debt of the group is as high as 2 billion yuan, most of which are bank loans and private lending.

Its chairman Tao Shoulong and his wife, Yan Qi, are both missing.

In August 13th, Zheng Yajin, chairman of the Zhejiang new group, located in Lanxi, Zhejiang, was hanged in her office due to a huge debt dispute.

"One new group" is a national high-tech enterprise engaged in the development, production and sale of Chinese and Western medicine preparations and natural pharmaceutical preparations. It is ranked as the top 50 Chinese patent medicine company. It mainly produces and sells Chinese and Western medicines, APIs, plant extracts and health products.

Its production of "a new baby syrup" once became a star brand at the end of last century, the Group annual sales of about 70 million to 90 million yuan.

In July 30th, Chen Jinyi, chairman of Zhejiang Jinyi group, located in Hangzhou, capital of Zhejiang Province, once ranked thirty-fifth in the list of China's Forbes rich list, was mysteriously missing because of her huge debts.

Jinyi group is a highly well-known private enterprise in Hangzhou and even Zhejiang. Its business scope covers many fields such as chemical raw materials, food and beverage, real estate development, commercial chain and so on.

Chen Jinyi, chairman and general manager, was born in 1961, Fang Wu Village, Bipu Township, Tonglu County, Zhejiang province. He is currently a member of the Zhejiang provincial CPPCC. He has won numerous honorary titles including outstanding young entrepreneurs in the country, ten outstanding young people in Hangzhou, and the new Long March Raiders.

In July 17th, Zhejiang Yiwu's top five "Zhejiang golden group" failed to repay due to huge debts and was auctioned off.

Its chairman, Zhang Zhengjian, is missing.

"Jin Wu group" is a star enterprise with obligations. It is a comprehensive modern enterprise integrating agriculture, industry and commerce. It has a wholly-owned subsidiary, Zhejiang Jiao Li socks Industrial Clothing Co., Ltd., Yiwu Wansheng Chemical Fiber Co., Ltd., Jinhua Jiangnan farm Co., Ltd., Shenzhen Dejia Trading Co., Ltd., and founded in the United Arab Emirates (Dubai).

It mainly deals with the production, sale and finishing of socks, clothing, wholesale and retail of cotton yarn and chemical fiber raw materials.

The product not only has a huge sales network in China, but also exported to Japan, the United States, the European Community and Russia.

In June 5th, the "Zhejiang flying group", located in Taizhou, Zhejiang, was heavily indebted, insolvent and suffering from the crisis of capital chain breaking.

"Leap Group" is the largest sewing equipment production base in the world. Since its establishment in 1986, it has formed a complete system from product development to whole machine, mold and parts manufacturing, quality control and after sale service.

In the field of sewing, the leap almost covers all types of products. It has 31 series and more than 300 varieties, and produces 2 million sewing machines annually. Among them, super high speed sewing machines and sewing machines account for more than 50% of the world's total output.

Qiu Jibao, chairman of "leap Group", was once called "national treasure" by Zhu Rongji. He was born in Taizhou, Zhejiang in July 1962, and is the sixteen largest representative of the Communist Party of China.

He was awarded the ten outstanding figures of the cause of building socialism with Chinese characteristics, the Chinese youth 54 medal, the Chinese National Youth medal, the outstanding representative of China's private enterprises, the outstanding figures in China's private enterprises, the ten leading figures in promoting the internationalization of Chinese brands, the ten leading leaders in the independent innovation of Chinese private enterprises, the ten leading figures in the international competitiveness of Chinese private enterprises, the masters of Chinese enterprises, the outstanding young entrepreneurs in China, the excellent entrepreneurs of private science and technology in China, the 50 Chinese enterprises, the Zhejiang provincial labor models, the outstanding enterprises in Zhejiang Province, the outstanding entrepreneurs in Zhejiang, the advanced private entrepreneurs in Zhejiang, the ten outstanding young people in Zhejiang, and the senior contributions of the Zhejiang businessmen.

In a short span of 4 months, the collapse of large enterprises and leading enterprises in Zhejiang business circles has aroused people's high vigilance. In fact, it has already sounded the alarm for the serious recession and crisis that may occur in China's economy.

Once upon a time, Zhejiang merchants were the most enterprising spirit, the best way to manage business and the most flexible pronoun of Chinese entrepreneurs.

Zhejiang, which is located in the Yangtze River Delta and Guangdong in the Pearl River Delta, is the two largest engine for rapid growth of China's manufacturing industry.

Since last year, first of all, a large number of foreign trade enterprises in Guangdong have been closed down due to the appreciation of the renminbi. Then, a large number of small and medium-sized enterprises went bankrupt in Zhejiang earlier this year.

Now, this situation has begun to endanger large enterprises in Guangdong and Zhejiang.

According to international experience, the wave of business failures during economic recession and crisis will generally go through three stages:

The first stage is the collapse of some small and medium enterprises with weak risk tolerance, which is the initial stage of recession and crisis.

The second stage is that some large enterprises are in the predicament of capital chain breaking and start to fail. This is the upgrading stage of recession and crisis.

The third stage, as a large enterprise involves a broader debt chain, the collapse of several large enterprises will trigger a full-scale debt crisis, which will lead to bankruptcy and bankruptcy in a large scale upgrading and proliferation. This is the overall outbreak stage of recession and crisis, and is also the most difficult period of economic recession and economic crisis.

Only from the six big enterprises that have broken down or broken up the capital chain, there may be more than 100 enterprises directly involved, and the scale of debt directly involved may reach as high as 200-300 billion.

If the mutual guarantee between enterprises is added, the data will be magnified several times or more than ten times.

It can be expected that in the next six months or even a year, the Zhejiang business community will also explode a series of debt mines, thereby directly threatening Zhejiang's leading position as an economically advanced and manufacturing province in the whole country.

The crisis and recession in Guangdong and Zhejiang will make the two high-speed engines of China's industrial growth in the Yangtze River Delta and the Pearl River Delta lose their strong driving force, resulting in the stalling of the entire Chinese economy.