Wenzhou: 40% Smes Are Facing Bankruptcy

SMEs in Wenzhou Usury Not much, more usury.

In Wenzhou, the "Lao Gao" of the running road (the local people claim that the loan shark is "Lao Gao") is more and more.

In September 6th, the lenders, Fang Ming and his friends ate together. At the table, some people suggested offering a reward of 1 million yuan, asking the police to use the strength of the public security system or to use the technology of the net police. Hide A senior lenders here sighed that this method had been tried, and no police were willing to take it.

These people at the table are the "home" of the runaway. The borrowers are missing, leaving hundreds of millions of debts. There are only two ways to wait for them: to repay the money for the runaway, or not to pay their debts, and to play with them.

　　 Less usury into industry

The phenomenon of "running away" in Wenzhou has also attracted the attention of some research institutions. according to CLSA securities According to the Research Report of private lending, the total amount of private loans outstanding in Wenzhou may have reached 800 billion yuan to 10000 billion yuan. Because some local enterprises are bankrupt, it is estimated that about 10%~15% of this year's outstanding loans will become bad debts.

Zhou Dewen, President of Wenzhou SME Development Association, also believes that today's physical enterprises may have a profit margin of only 3% to 5%. For them, the monthly interest rate of 8, 6 or even 2 points is unbearable. However, due to the narrow channels of private financing, small and medium-sized enterprises have to borrow money from usury, and they may collapse immediately without borrowing.

Central bank Wenzhou central sub branch monitoring statistics, at present, the highest interest rate of private lending in Wenzhou is around 40%. But Zhou Dewen believes that the actual annualized interest rate of private lending in Wenzhou should be higher than 40%. "Official data are derived from information provided by intermediaries such as Guarantee Corporation, consignment shops, pawnshops, and so on. These monitored objects themselves are likely to be" providers of usury ". The information disclosed to the authorities will be preserved because of their irregular operation.

Zhou Dewen said that 20% out of 36 SMEs in Wenzhou have been closed or shut down. If the external environment is not improved in the second half of the year, 40% of the small and medium enterprises will be closed down or even closed down.

Reporters in Wenzhou local interview found that Fang Ming's circle of usury loan people do not support Wenzhou SMEs because of high interest rate and stop production. Because there are not many usurious loans to companies that are truly industrial.

Liu Ming, a manufacturing boss and Fang Ming, hold the same view: "because of the rising cost of raw materials and labor, the appreciation of the renminbi and the tightening of monetary policy, the profit margins of manufacturing industry are getting lower and lower. Some bosses will transform their assets into loan capital, making more money than doing business. Once the money is lost, it can only run, but this is the minority.

In other words, small and medium-sized enterprises in Wenzhou borrow a lot of usury, but there are quite a lot of money that they used to take out for industrial purposes. Fang Ming believes that in Wenzhou, more and more SMEs are involved in usury.

"But the people in Wenzhou are so calculating, he has a very clear account of his own mind, and he is trying to be the boss of the enterprise himself. He will not put all his money in usury." Another lender said.

　　 Travel is mostly due to gambling.

Usurious chain There are dealers and retail investors. In Wenzhou, where there are many private funds, investment companies are established. Fang Ming's friend opened an investment company. Fang Ming lent money to him. The monthly interest rate was 3 cents. The investment company reinvested in five or six monthly interest rates, mainly depending on the identity of the borrower and the guarantor.

Wenzhou borrows mostly in favor. If it is a loan between friends, it will know in advance what the purpose of the loan is, whether to do business or loan shark, who is the guarantor. If it is usury, either the partners will do it together, the profits will be shared, or A will lend the money to B, and B will give A interest every month, then A will lend usury to B. "Some people do not want to spend their energies on lending. They prefer to give money to their friends, to lend their friends or invest, so long as they pay the money on time every month." Fang Ming said that this situation is more. This is the case with the usury between his friend and his friend. His friend's investment company converged on the funds of his friends and relatives. Like a fund company, Fang Ming is a retail investor and a friend is a trader.

But because of the long-term human relationship, the risk of usury chain in Wenzhou has increased. {page_break}

Not long ago, Fang Ming's cousin said that a foreign friend brought back 100 million euros and wanted to do some business. Fang Ming had not yet had time to lend money to his cousin, and the news came out that his cousin and his family were missing.

It turned out that cousin accidentally tens of millions of dollars to gamblers, gamblers lost money after jumping off the floor, cousin must sell their own two buildings, part of the debt, and 100 million euros in the project cheated some loans, the family fled. "A few days before the escape, there was a sports car. The name tag on the whole body didn't show a sign of running away."

Usury to the end of the chain is six or seven cents interest. Suppose we borrow 10 million yuan, take 6 monthly interest rate, generate interest 20 thousand yuan a day, interest 600 thousand yuan per month, annual interest rate of 7 million 200 thousand yuan per person, who can afford such a high interest rate?

Several Wenzhou lenders believe that gambling is the root cause of the "Lao Gao" run.

"There are two kinds of people who really borrow six or seven points interest, one is short-term turnover, and a few days later, this situation is relatively small. One is a gambler who thinks that a bet can win, so that he will borrow such a high interest rate." Fang Ming said. It is the latter act that makes usury risky.

Chen Hong, general manager of Wenzhou Tian Hao Real Estate Co., Ltd. also holds the same view that usury and gambling are inextricably linked. Many capital scandals are derived from gambling.

Gambling lost, no money to repay, can only sneak away. However, lenders, guarantor or small loan companies have to repay their debts. If these people can not afford to pay, they will have to play with them.

Xiao Xu, who lives in Wenzhou for 5 years, told reporters that during the Spring Festival in Wenzhou, the wind of gambling was particularly prosperous. Many overseas Wenzhou people returned home for the new year. They gambled together, and the interest on the gambling table was very high, sometimes it was as high as 1 Gross 2 and 1 1 respectively.

　　 Has little impact on Wenzhou's economy?

Fang Ming's parents have been lending too. "A few days ago, my parents talked with me about selling the house they were renting and putting it on loan. How much is the rent per month? Lending money is fast.

When his cousin fled home, even though he knew the danger was getting worse, Fang Ming was prepared to sell a house on his hand and cash in to continue lending. "Such a higher rate of return on investment."

Fang Ming admitted his fluke mentality. "It is known that it is becoming more and more dangerous. However, there is a saying in Wenzhou that the business of a decapitated person has been done, and no one has done any business at a loss. You can make more money before the bubble burst. "

Fang Ming said that, like him, cash in lending is not a minority in Wenzhou.

Contrary to the view of many people today, Fang Ming thinks that the economic impact of usury on Wenzhou itself is not great. Because Wenzhou people do not put all their money in one basket, they only use the extra funds on hand to lend, and the risk is within the acceptable range. "It's impossible for Wenzhou people to sell the only house they own, and then loan it."

In addition, Fang Ming also believes that usury is reasonable. "As long as someone asks, there must be someone to provide services." But he admits that usury is a huge bubble and the bubble will burst on the other day. First, it depends on the attitude of the government. If the government reduces the interest rate of bank loans and lowers the interest rate of private lending, the bubble will be broken; the two is the psychology of retail investors. Wenzhou people like to get together. The money of big makers (investment companies, small loan companies, etc.) is made up of many retail investors. Panic among retail investors will inevitably bring the bubble to a premature rupture.