Wenzhou'S Private Capital And Industry Are Fading Away.

Private capital in Wenzhou: getting further away from industry -- Analysis

When the capital accumulated by the main business is gradually moving away from the real economy and plunging into the capital market and the embrace of the property market, the crisis has already lurked.

Rely on industry to make money, but slow wealth comes slowly.

Chinese people realized that Wenzhou's private capital was fierce.

Today, the real estate industry is still the first choice for capital investment in Wenzhou. In 2010, property policy tightened, investment finance and private equity became the new hot destination.

What worries us is that when Wenzhou, a manufacturing industry, started playing capital games, when capital was obsessed with "stir up" money, who would be more interested in industry?

In the 30 years of reform and opening up, Wenzhou people have managed to turn a small family workshop into a well-known enterprise. Wenzhou has developed from a small city to a famous commercial city. "Made in China" has made the world have to re-examine China's international status.

To match this, Wenzhou has accumulated a lot of capital.

Zhou Dewen, President of Wenzhou SME Development Promotion Association, said that Wenzhou now has about 8000 to 10 thousand billion of private capital, so much capital is looking for investment areas.

Real estate survival of manufacturing industry

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Near the end of the year, Lin Fei is busy with the final preparations for the Wenzhou tour. In the first month of 2011, the Wanda project will focus on Wenzhou's tour, because Wenzhou people will go home to celebrate the lunar new year.

Lin Fei said with some adoration that he used to be

Wenzhou people's real estate started from their doorstep.

From 1998 to 2001, local real estate prices increased at an annual rate of 20%, and urban housing prices surged from 2000 yuan / square meter to 7000 yuan / square meter.

In 2001, the first Wenzhou housing group, a total of 157 people, went to Shanghai, and bought more than 100 houses in 3 days, and about 50000000 yuan in cash against Shanghai's property market.

Meanwhile, another purchase team went to Hangzhou.

Over the next few years, about 200 billion yuan of Wenzhou's capital invested in real estate everywhere. Wherever they went, local housing prices went wild all the way.

However, Wenzhou's capital investment real estate has gone beyond the "speculation" stage.

In 2010, the latest ranking of top 100 private enterprises in Zhejiang in 2009 was 70%.

In 2010, half of the top 100 enterprises in Wenzhou were involved in real estate.

Real estate has become an indispensable industry of enterprises, and even determines the survival and survival of enterprises.

The argument that "selling goods is inferior to capital" and "do not ask for 100 years' foundation but seek asset appreciation" are popular in the bookshops.

In the traditional clothing industry, some famous brand enterprises are selling their houses, including YOUNGOR, Shanshan, Taiping bird, and happy birds.

In July 2007, YOUNGOR won the first plot in Hangzhou with 1 billion 476 million yuan, and entered the Hangzhou real estate market with a high price of 15 thousand and 712 yuan / m2 of floor price.

It has been revealed that YOUNGOR group has developed 3 million square meters of residential properties, villas, business buildings and other properties in Ningbo and Suzhou.

In 2009, YOUNGOR set up YOUNGOR real estate holding company. Li Rucheng, chairman of the group, hopes that YOUNGOR will become a national real estate brand in 10 years.

This is also true of Wenzhou's traditional electrical appliance industry.

Zheng Yuanbao, chairman of the people's appliance group, introduced that the people's Appliance Group invested 1180 yuan in real estate projects in Handan, Hebei, which invested 2 billion yuan, and invested more than 500 billion mu of headquarters in Wuhan, investing more than ten billion yuan.

In addition, will continue to invest in real estate in Henan, Zhengzhou and other places.

He said that for some property to hold for a long time and get double profits from rising real estate and rents, it is expected to have a profit of seven or eight percentage points.

Huang Fajing, chairman of Wenzhou Day Fung lighter Co. Ltd., admitted that as long as there are suitable projects to invest in real estate, more than two or three projects are being done.

AOKANG group, a well-known shoe maker, is also a real estate developer called out by ordinary people.

According to relevant information, the number of manufacturing enterprises in Zhejiang accounted for 60% of the total number of private enterprises in 2009, down 24% from the same period last year.

In the last 100 private enterprises, 14 traditional manufacturing enterprises failed to enter the top 100 list.

Among the top 100 private enterprises, the fastest growing industry is the housing construction and real estate industry.

The news bird group invested in real estate in 2003.

Group related responsible person said, "real estate" survival itself is a diversified operation, industrial investors and developers who are reluctant to sell real estate are essentially different from each other. Industrial investors are more concerned about cash flow, and pursue fast forward and quick out.

And industrialists' "fast forward" will undoubtedly accumulate huge market bubbles.

Investment finance and private equity

Wenzhou private enterprises invested in investment and finance was unprecedentedly positive. By the middle of 2010, 1361 private backbone enterprises had invested in various financial institutions, with a capital of about 7 billion yuan.

Among the Wenzhou businessmen who are in contact with Lin Fei, real estate is no longer their only capital destination. Many people choose to directly intervene in the financial sector.

After the tightening of bank credit, private lending was once popular.

According to the investigation of Wenzhou central sub branch of the people's Bank of China, since 2005, with the deepening of the reform of Wenzhou's rural financial system, Wenzhou has launched a boom in the stock market.

Since July 2008, with the continuous development of small loan companies and village banks, the investment of private enterprises in Wenzhou has been unprecedentedly positive.

By the middle of 2010, 1361 private backbone enterprises had invested in all kinds of financial institutions and invested about 7 billion yuan.

In Wenzhou, official, civil, semi official, semi civil, and all kinds of platforms have been built in an attempt to find a way out for Wenzhou's private capital.

All kinds of training courses on venture capital have been concentrated in Wenzhou. Now, there are already a lot of Wenzhou entrepreneurs with a certain strength. After forming a certain scale of investment funds, they go to professional fund companies and private placement companies.

Zhang Yi is the person in charge of an investment company in Wenzhou. According to him, an investment company like them is to assemble Wenzhou's idle private capital and invest in various fields.

Not long ago, Wenzhou Buffett limited invested two hundred million yuan in an agricultural technology company with the concept of listing in Xinjiang.

Wenzhou Buffett Co., Ltd. is one of the earliest private fund companies established in Wenzhou. Its main shareholders are traditional shoes and clothing enterprises from Wenzhou.

Through a series of capital operations, the company has been greatly different from the traditional manufacturing industry whose shareholders are engaged in.

According to media reports, according to incomplete statistics, there are about 12 enterprises engaged in private equity investment in Wenzhou, and there are more than 10 Private Equity Investment Firm founded by Wenzhou people outside Wenzhou.

The funds of these institutions range from tens of millions to about one billion yuan.

Its capital mainly comes from Wenzhou private enterprises, which have already begun to take shape in industry.

Zhou Dewen, President of Wenzhou SME Development Association, treats Wenzhou people's "tug of investment" in this way. In Wenzhou, as long as the project is good, they are not afraid of no funds, which is a major advantage of Wenzhou.

"Wenzhou has a flexible mechanism for private enterprises, especially in capital accumulation, with its own specific mode. So long as we find good investment projects, we can quickly raise large amounts of funds in the private sector."

Private capital in Wenzhou is no longer a simple sense of idle capital. The alliance and system of capital formation are growing rapidly.

The strong capital of 1 trillion yuan, the action is swift and unanimous, "a meal of several phone calls can beat 1 billion yuan of funds", they have the ability to pry the commodity essential factor in any market, unavoidably everywhere, panic.

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A few days ago, Wenzhou became the only pilot of individual overseas direct investment in China.

Allegedly, the original intention of the pilot directly refers to the private capital represented by Wenzhou.

Zhou Dewen said that Wenzhou people's funds can be directly exported, which is an important measure for further reform and opening up. The government encourages Wenzhou's private capital to invest in overseas industries, share directly in foreign countries, and merge some foreign non-financial sectors, which has found a very good outlet for Wenzhou capital.

Why not do business?

The argument that "selling goods is inferior to capital" and "do not ask for 100 years' foundation but seek asset appreciation" has always been popular in the bookshops.

Wenzhou's capital is keen to invest in finance and private equity, and has long been in charge of real estate investment. The local government is eager to build various platforms to find investment for the capital. The central government has launched a "pilot" new policy to guide capital to go out.

However, why not invest in industry?

Reporters understand that Zhejiang private enterprises are mainly engaged in real estate in two periods: the first is the policy liberalization around 2000, and many manufacturing enterprises have invested in real estate.

Secondly, in 2005 and 2006, the profits of manufacturing industry have been diluted, and some private enterprises have to find auxiliary industries.

With the rapid development of real estate in recent years, the profit of private manufacturing enterprises has been declining.

Clothing, electrical appliances and shoes are the three major traditional manufacturing industries in Wenzhou.

The reporter understands, at present, the profits of the three industries are declining sharply, and the profit of shoe industry can only be maintained at 1% to 3%.

The profit of electrical appliances dropped from 20% to 7%, and even small and medium-sized enterprises were only about 2%.

And this is relative to the huge profits of real estate investment.

The leader of the listed company, Fu Li Da group, once introduced that the net profit of the group increased by 12 times compared with that of the real estate development, property management and industrial investment.

It is not difficult to understand that among the top 100 private enterprises in Zhejiang, construction and real estate enterprises rose from 4 in 2002 to 27 in 2009, of which 10 real estate enterprises sold 146 billion 300 million yuan, up 66% over the same period last year.

This does not include a number of "sideline" real estate manufacturing companies.

According to the responsible person of the news bird group, under the situation of manufacturing depression, some manufacturing enterprises will mortgage the plant for production, exchange loans, invest in real estate, and maintain the operation of the enterprise with the high profits of the real estate.

Although companies are scrambling to profit from the real estate and financial industries, business executives emphasize that these sideline businesses are only platforms for obtaining capital.

However, despite repeated arguments, the real estate and financial markets are just capital platforms, and earn money will return to industry. But how much credibility is there? It is doubtful that when people are able to get hundreds of millions of wealth into their pocket when they do not move, they will still bother to do business. When capital enters real estate and finance can be appreciated rapidly, who can remain calm and commit themselves to scientific research and high technology innovation?

The data are undoubtedly the most convincing. The Guangdong Province, Su Lu and Zhejiang, which belong to the coastal areas, are the top four national economy. The 4 provinces are often analyzed as a plate in statistics.

In 2009, on the economic growth rate, Jiangsu increased by 12.4%, while Shandong and Guangdong increased by 11.9% and 9.5%, while Zhejiang increased by only 8.9%.

In 2003, Zhejiang's gross domestic product was about 905 billion yuan, while Jiangsu realized 1 trillion and 245 billion 180 million yuan. The gap between the two provinces was about 300000000000 yuan. But in 2009, after 5 years, Jiangsu achieved 3 trillion and 406 billion 100 million yuan gross domestic product, Zhejiang was 2 trillion and 283 billion 200 million yuan, and two provinces had a gap of more than 1 trillion.

It is clear that the fleeing of manufacturing capital has made the momentum of Zhejiang's economic growth become tired.

Wenzhou is facing the spirit of commercialism instead of industrial spirit. Business spirit pays attention to the present and profits are used to measure all the standards. The spirit of industry focuses on industry and is proud of what achievements it makes.

The profit orientation and structure at the moment are worrying.

Will the manufacturing industry rebound in the past be a false impression of a real estate bubble?

This is not the image of China's industry at present. There is nothing wrong with capital gains and profits. It is indisputable for enterprises to survive.

However, it is certain that the waste manufacturing industry is definitely a loss of intelligence.

The huge gap between the low profits of the manufacturing industry and the high profits of the real estate industry is absolutely abnormal.

Land finance is hard to blame in this frenzy.