Usury Forced Private Entrepreneurs In Wenzhou To Escape Collectively.

This year, all over the country, especially in Wenzhou, is frequent.

Usury and "not doing business" result in huge losses

Small and medium entrepreneurs in Wenzhou

Faced with repeated changes in financing costs and changes in the external economic environment, it continues to expand regardless of the consequences.

Recently, a number of Wenzhou bosses, including Hu Fulin, chairman of Xintai group, have spread rapidly. In the 10 days since September 12th -22, there are already several bosses in Wenzhou who have been involved in the "missing" whirlpool. The industry scope mainly involves machinery, valve doors and other manufacturing industries. Besides, the responsible person of the local government also revealed that in September 22nd alone, there were 9 bosses running on the same day in Wenzhou. The core reasons were all too rapid expansion of business, resulting in inflow of funds and huge amounts of money.

Take Xintai group as an example, the company has more than 3000 employees and holds the only well-known trademark "dolphin" in China's glasses industry. According to statistics, the output value of optical glasses was 272 million yuan last year, and output value is 125 million yuan in 1-8 months this year. According to statistics, Wenzhou has a well-known brand of "dolphin".

However, due to excessive business, the output value of hundreds of millions of yuan can not meet the needs of its expansion. Public information shows that Xintai's business in recent years also includes solar photovoltaic, real estate and so on, and these industries demand huge amounts of capital.

How much debt does Xintai owe, the outside world is not fully aware of it.

There are guesses that the Xintai group Hu Fulin real arrears of up to about 2000000000 yuan, including 1 billion 200 million yuan usury, monthly interest up to about 20000000 yuan, bank loans 800 million yuan, monthly interest rate of about 5000000 yuan, in the photovoltaic power generation cost recovery is slower, the real estate industry experience the property market.

Coincidentally, in May this year, the registered capital of 15 million 800 thousand yuan Jiangnan leather company and the Zhejiang June Tianshi Electronics Co., Ltd. boss also failed to repay loans because of the escape.

"Small and medium-sized enterprises in Wenzhou have problems of survival, ignoring the changes in the external financing environment and the economic environment. It is still one of the reasons why they can borrow money without interest."

Chen Naixing, a small and medium enterprise research center of the Institute of industrial economics of the Chinese Academy of Social Sciences, told reporters that the money of private lending in Wenzhou is not a form of guarantee. In general, ordinary families give money to middlemen, and middlemen pay the money to the company again. It is a form of Pyramid that is handed over from top to bottom.

The Wenzhou Central Branch of the central bank recently released the "Wenzhou private lending market report" shows that private lending in Wenzhou is extremely active, with 89% of the households and 59.67% of the enterprises involved in private lending. At present, the scale of private lending in Wenzhou is as high as 110 billion yuan.

However, when the central bank raised the deposit reserve rate for the six time this year, when raising the threshold of official financing, it also pushed up the cost of private lending.

The Ministry of industry and information also shows that some bridge loan interest rates even reach as high as 30% or more, and the private sector is rumoured that Wenzhou's small and medium enterprises are currently non-governmental.

"After a boss has run away, the boss of Guarantee Corporation is bound to fail. If a Guarantee Corporation boss runs on a road, the associated enterprise will inevitably be affected, and the cycle will be repeated."

Chen Naixing's worries are not unreasonable. In July of this year, Zhejiang's giant shoe boss fled the business, mainly due to the involvement of an illegal Guarantee Corporation. Guarantee Corporation's boss fled, and he was forced to flee.

In Chen Naixing's view, although Wenzhou has always been the habit of private lending, but because of the "uncertainty" of the development of uncertainty, Wenzhou's small and medium-sized enterprises finally ushered in their own winter.

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SME failure or bring

"Domino dominoes" effect

Many people worry that once the Wenzhou business owner runs down this Domino down, there will be a series of chain effects.

"Small and medium sized enterprises which lack credit or have no ability to establish credit are often issued loans for the purpose of business indicators. At present, the credit market of SMEs in our country has not been fully established. For banks, loans to such SMEs are also a huge risk, usually requiring mortgage loans.

For small and medium-sized enterprises without credit, they can only turn to private lending capital for funding.

Min Sen, an Associate Research Fellow of the International Trade Research Institute of the Ministry of Commerce, said in an interview with reporters.

In the current high inflation level and the negative real interest rate of deposits, private credit has become active.

However, because of the establishment of the local financial system and the private credit system, there are still a lot of space. There are a lot of disputes about private loans, such as triangle debts, duplicate mortgages and so on.

Mr Min said, for example, in the case of an enterprise loan marked "used for a production project", the explanation in the judicial interpretation would be that if there is no ability to repay, the investment will be executed accordingly.

Once the company is bankrupt or insolvent, it will be difficult for the borrower to recover the funds.

Moreover, the issue of repeated mortgage for fixed assets such as real estate and automobiles is only a contract fraud rather than a fraud in the judiciary, and the lender is not at risk of criminal liability.

Small and medium-sized enterprises have absorbed a large number of personnel employment. Once the enterprise fails to pay debts, it will lead to bankruptcy, or the enterprises will throw away the mess.

"In the export structure of our country, processing trade occupies half of the country. Although the added value is low, it solves a large number of jobs and supports a large number of people. This is the undeniable contribution of processing trade to export enterprises.

Most of the coastal enterprises bear the task of export. If the bosses of small and medium-sized enterprises run out of a large area, it will be a heavy blow for our exports. "

Wang Jun, Vice Minister of consulting and Research Department of China International Economic Exchange Center, said: "the breakup of capital chain of small and medium-sized enterprises has increased financial risks and brought great risks to all parties involved in the game.

Due to financial control, some state-owned enterprises have not opened up the normal credit channels, and the funds can not find a way out. Private capital has, to a certain extent, formed a vicious circle that has broken down the east wall to make up for the west wall.

The balance between supply and demand can not be balanced. If the financial market of private credit is facing collapse, most of the victims will be families who are involved in capital contribution.

Set up SME financing institutions

Supporting pformation of small and medium-sized enterprises

Some experts pointed out that how to help SMEs develop innovative technology and set up SME financing institutions is an effective way to encourage the development of SMEs.

Chen Naixing believes that the collapse of Wenzhou enterprises has its special reasons. Due to the lack of labor resources, a large number of small and medium-sized enterprises in Wenzhou no longer develop industries, and invest in real estate, stock, funds and other fields. The profit margins of small and medium-sized enterprises are relatively low. In addition, they invest in some non entity economies and increase their risks, making the survival of small and medium-sized enterprises again face profitability problems, so that some small and medium-sized enterprises have to go bankrupt.

"Only if SMEs are allowed to carry out technological pformation smoothly and let SMEs return to the investment real economy, can they effectively improve their closing down."

He said.

At the same time, Chen Naixing also reminds us that the development of SMEs in China has been overly dependent on labor costs. As long as some people can make profits in enterprises, with the shortage of labor force in China, labor costs continue to rise, leading to the collapse of small and medium-sized enterprises which rely on labor.

"For the development of SMEs, the rising cost of labor is an important reason for SMEs to go bankrupt and collapse. Therefore, to help SMEs develop, an important way is to help SMEs to rely on human resources to become dependent on technology through tax support and other means, so as to help SMEs successfully achieve pformation."

Chen Naixing analysis said: "this process can form a forced mechanism to enable SMEs to pform to technology intensive enterprises."

At the same time, min Sen also believes that for those small and medium-sized enterprises outside the independent innovation oriented technology enterprises, it is a way to self rule according to market rules.

These enterprises have problems in their operation and poor credit standing. It is also a big trend to realize the pformation and upgrading of the market industrial structure through the survival of the fittest.

In terms of financing, some experts also said that our country could also consider setting up institutions that specifically help small and medium-sized enterprises to finance, so as to solve the problem of small and medium-sized enterprises' capital difficult to turn around.

Wang Jun believes that in terms of China's current financial system, China does not have a specialized agency to help small and medium enterprises to finance, and small and medium-sized enterprises have a large demand for financing. Therefore, on the basis of the existing banking system, China can set up some innovative financial institutions to help SMEs to finance, so that the financing difficulties of SMEs can be properly solved.

"The current financial system is really not suited to serving small and medium-sized enterprises, without financial control, and the development of local and small and medium-sized financial institutions is not perfect enough, so we need to reform the financial system.

On the one hand, we should liberate some normal financial channels to find a way out for some excess funds. On the other hand, we should speed up the underground financial system into the formal financial system, and we can not simply suppress it.

Only when the supplier and the buyer find the right price can they balance the benign flow of capital.

Wang Jun said.

In fact, the Ministry of industry and information technology also said it would introduce policies to support the development of small and medium-sized enterprises.

Experts said that China will introduce policies from three aspects to support the development of small and medium-sized enterprises.

Experts believe that after the division of micro enterprises, the policies will be more inclined to micro enterprises.

On the one hand, it is to create an environment conducive to the growth of enterprises. On the other hand, it is to formulate policies that are inclusive.

In addition, China will further increase support for small and micro enterprises.