Collective "Play The Money" To See How Wenzhou Smes Fall?

Escape from manufacturing

People familiar with Wenzhou's manufacturing industry know that Wenzhou's manufacturing enterprises are mainly concentrated in leather, lock, lighters, glasses and other industries. At the height of their prosperity, the output of these four kinds of small commodities occupies a leading position all over the world.

But now, Wenzhou is not such.

More than smoking gear, Wenzhou is the most proud.

A manager of an Asian shoe purchasing center supplied by WAL-MART, Carrefour and other large supermarkets told reporters that he had orders of 8000 to 90 million dollars every year. Most of the orders were completed in Wenzhou, and this year's orders are close to 80% to India and Vietnam, because most of Wenzhou's shoemaking enterprises do not take orders.

"The high cost of manpower and raw materials is certainly a reason, but mostly the majority.

Most of the small and medium-sized enterprises in Wenzhou who have given up their main businesses are very short of money and are always financing everywhere.

That is to say, because of the financing of the main business, many small and medium-sized manufacturing industries have not been closed down. As long as they are still in production, business owners can borrow money from banks and private financing institutions.

Chen Hong, general manager of Tian Hao real estate company, said that some of his colleagues' production lines were basically only 20% when he was making shoes. He did not invest directly in real estate or loans.

Since it is lending, of course, the higher the interest, the better.

"Now, manufacturing enterprises in Yueqing, Wenzhou, whose production scale is below 200 million, is basically losing money, because their profits are low and their superposition is not sufficient.

They only take the enterprise as a platform for financing and engage in other investments. "

Vice president of a manufacturing enterprise in Wenzhou.

Liang Qianqian, deputy director of the Wenzhou Municipal People's Bank statistics bureau, also confirmed that they heard that the bank or loan officer reflected that corporate loans were not used for their own development, but for other industries.

A Yueqing CPPCC official said that in 2010, they conducted a survey. "Over 70% of the profits of the above scale enterprises in Liushi town of" low voltage appliance capital "no longer invested in local industries, but pferred to other provinces and cities to develop real estate and build high-tech projects, and there were also many funds for buying buildings and mining.

The CPPCC officials acknowledged that the business as a financing platform, in order to get a large number of bank loans to invest in real estate and other industries, this phenomenon is relatively common in Wenzhou.

"In 2010, an enterprise with an annual output value of about 100 million yuan could win 1 billion yuan of bank credit."

The Wenzhou City People's Bank reported that in 2010, under the loose monetary policy, banks sought to seize the loan market share, making some manufacturing enterprises financing channels more and more heavily indebted, exceeding their actual bearing capacity, for example, the total liabilities of some enterprises exceeded their annual output value.

"This kind of overfinancing manufacturing industry often exists cross industry and different places investment behavior".

"The cost and difficulty of financing this year have all increased, but the state of high debt investment in Wenzhou manufacturing enterprises has existed. A large number of projects invested before need to be further invested. Even if usury is used, Wenzhou's manufacturing enterprises can no longer throw away the curse of capital greed."

The head of a local investment organization in Wenzhou said.

Liu Qihong, director of the regional economic research center of Hohai University, recently reported that Zhejiang's capital pursuit of huge profits has restrained its investment in industrial innovation to a certain extent, and the momentum of local economic development has shown signs of failure.

According to Chang Li Li, executive vice president of Wenzhou University business school, most of the Wenzhou private enterprises are directly or indirectly related to real estate.

{page_break}

Chen Hong also holds the same view on the real estate chain. He thinks that a large number of manufacturing enterprises in Wenzhou are real estate enterprises.

There are even some bosses who use enterprises as financing platforms to use credit funds to go to real estate or engage in real estate development.

"Most bank credit is misappropriated by enterprises."

A person in charge of a commercial bank who is in charge of the company's loan business revealed that according to the follow-up visit of the loan officer, it was found that many loans were used for speculation and speculation, which was rarely used for the development of the enterprises themselves.

"In the name of expanding production capacity and technological pformation, enterprises use corporate assets to go to bank mortgage loans, and then through book processing, they successfully enter other high-income investment industries."

"Clothing enterprises have limited profits. We use it as a platform to accumulate connections or finance."

The chairman of a clothing group in Wenzhou once said that the real estate industry is an example. If developers invest in real estate projects for a total of 120 million yuan, they will inject the funds, developers will pay them 20% to 30% monthly interest, and collect accounts after 3 months.

He also said that this investment method is convenient and labor-saving, even exceeding the pure profit brought by the garment industry.

A shoe factory in Cangnan, in recent 10 years, the owner of the enterprise has spent all the money he made on shoemaking machine to buy a house. From north to Heilongjiang, South to Hainan, there are real estate everywhere, and the main business has not developed for 10 years.

Liang Qianqian, deputy director of the Wenzhou Municipal People's Bank statistics bureau, also confirmed that they heard that the bank or loan officer reflected that corporate loans were not used for their own development, but for other industries.

A Yueqing CPPCC official said that in 2010, they conducted a survey. "Over 70% of the profits of the above scale enterprises in Liushi town of" low voltage appliance capital "no longer invested in local industries, but pferred to other provinces and cities to develop real estate and build high-tech projects, and there were also many funds for buying buildings and mining.

The CPPCC officials acknowledged that the business as a financing platform, in order to get a large number of bank loans to invest in real estate and other industries, this phenomenon is relatively common in Wenzhou.

"In 2010, an enterprise with an annual output value of about 100 million yuan could win 1 billion yuan of bank credit."

The Wenzhou City People's Bank reported that in 2010, under the loose monetary policy, banks sought to seize the loan market share, making some manufacturing enterprises financing channels more and more heavily indebted, exceeding their actual bearing capacity, for example, the total liabilities of some enterprises exceeded their annual output value.

"This kind of overfinancing manufacturing industry often exists cross industry and different places investment behavior".

"The cost and difficulty of financing this year have all increased, but the state of high debt investment in Wenzhou manufacturing enterprises has existed. A large number of projects invested before need to be further invested. Even if usury is used, Wenzhou's manufacturing enterprises can no longer throw away the curse of capital greed."

The head of a local investment organization in Wenzhou said.