The Government Of Wenzhou Demands That Banks Do Not Pump Money To Cope With The Running Tide

Banks and private lending at the same time Debt collection Wenzhou's small and medium-sized private enterprises have broken their capital chain, and Wenzhou boss's "running tide" has become increasingly fierce. The local government's urgent working group is stationed in the bank, asking for "no money and no pressure on loans", trying to win time for the enterprise.

How many bosses have vanished in the "runway"? From Wenzhou Finance Office was informed that as of 27 days, there were 26 business owners "run", the amount involved is under investigation.

In September 22nd alone, 9 business owners were "on the run", which aggravated the obvious trend and aroused the high degree of vigilance of economic and social managers.

"Business owners of small and medium sized enterprises have been running away" for a relatively concentrated phenomenon. A working document of the local government noted that "the closure of enterprises is going to be spread from smaller enterprises to large enterprises." Hu Fulin, the legal representative of Zhejiang Xintai Group Co., Ltd. (micro-blog), a leading enterprise in the glasses industry, has a huge impact and has brought a chain reaction.

Yesterday afternoon, the Wenzhou municipal government held a press conference to analyze the current problems of enterprises, finance, private lending and other issues, and announced the economic and financial "stability" and non-governmental financial regulation measures.

High interest engulfed corporate profits

The data provided by the Wenzhou municipal government show that since the beginning of this year, local private lending has been consolidated. interest rate The annual interest rate continued to rise from 23.01% in January to 25.44% in September.

Among them, in July, financing intermediaries borrowed interest rates up to 39%, which means the monthly interest rate of private lending was between 3 and 4.

"If interest rates exceed this level, the profits left by the manufacturing industry in the cracks will disappear, and it will be difficult for enterprises to maintain normal operations." China's first private bank owner, Fang Fang Lin, director of Wenzhou Fangxing Company limited by guarantee, told the first Financial Daily reporter.

The official documents from Wenzhou also confirmed for the first time that the scale of private lending was 110 billion yuan, accounting for about 1/6 of the total amount of private capital (over 600 billion yuan), which is equivalent to 1/5 of Wenzhou's bank loans.

The main source of funds is idle funds of private enterprises and ordinary families.

Where did the money go? According to the statistics of the local government, the scale of private lending for general production and operation is about 38000000000 yuan, accounting for 35%; the investment for real estate projects is 22 billion yuan, accounting for 20%; the balance of loans of general social subjects (mainly individuals) to private intermediaries is 22 billion yuan, accounting for 20%; and the short-term turnover of borrowers used for repayment of loans, advances in margin deposits and capital verification is 22 billion yuan, accounting for 20%, while the remaining 5% is 6 billion yuan for other investments, speculation and unknown purposes.

Local private SMEs rely heavily on private lending. According to a sample survey of 350 enterprises, at the end of the first quarter of this year, the ratio of the three funds of self financing, bank loans and private lending was 56:28:16.

According to a sample survey of 105 small and medium-sized enterprises in Ouhai District, 90 enterprises have raised initial funds through private lending. Among them, 32 enterprises have no initial bank loans, and all of them come from private lending.

Economic fundamentals deteriorate

The development of private finance in Wenzhou is not a day. Now many enterprises are overwhelmed by private lending, which means that the operation of enterprises and even the local economic operation is not optimistic.

According to the survey of the order of 855 key monitoring enterprises by the end of September by the Wenzhou Municipal Commission of credit and information, 21.6% of the enterprises took the initiative to reduce the number of orders or push off some orders due to the rising price of raw materials and the appreciation of the renminbi.

Corporate profits also declined. 1~7 months, the profits of Industrial Enterprises above Designated Size in Wenzhou increased by 10% compared with the same period last year, and the growth rate continued to fall. Among them, the most obvious drop in small businesses, profits grew by only 6.9% over the same period last year, down 2.3 percentage points from the first half. The profit increase is 7.1 percentage points lower than the sales output increase, which is 3.4 and 0.9 percentage points higher than that in the first quarter and the first half of the year.

In 1~7 months, the loss of 326 loss making enterprises above designated size was 640 million yuan, an increase of 220 million yuan over the same period last year, an increase of 52.2% over the same period last year, an increase of 27.1 percentage points over the beginning of the year.

Corporate profits have gradually declined and losses have been deepened by loss companies. The economic management departments have summarized the causes as follows: monthly growth in industrial production, fluctuations in raw material prices and substantial increase in financing costs.

Among them, the increase in financing costs and the difficulty is due to the "double superimposed pressure" of commercial banks' loan tightening and private usury.

As a result, many small and medium-sized enterprises' capital chain is tight or even closed down, and the collapse of a business will affect a number of affiliated enterprises' capital chain. In the developed "blocky economy" of Wenzhou, once the chain reaction occurs, the consequences will be very terrible.

Professor Chen Jianjun, executive director of the regional and urban development research center of Zhejiang University (micro-blog), told reporters that this is just the beginning of the current round of economic readjustment. In every economic regulation, some enterprises will survive in the fittest so as to carry out the normal industrial upgrading. If the boss runs, the closing tide will deteriorate even in the fourth quarter of this year.

Government "maintaining stability"

There is also a worrying chain reaction that is the risk of social stability caused by the closure of the tide or the "running tide".

According to the statistics of the court, as of the end of August, the number of private lending disputes in Wenzhou increased by 25.73% over the previous year, 8.7 percentage points higher than that in the first quarter, and the amount involved was about 5000000000 yuan, an increase of 71% over the previous year. In August, the amount involved was 1 billion 70 million, which was 2.69 times that of January.

According to statistics from the public security economic investigation department, there were 17 cases of illegal fund-raising cases filed by the Wenzhou Municipal Public Security Bureau in 1~8 months, the number of cases increased by 3 over the same period last year, and the amount involved was more than 550 million yuan, of which 3 cases occurred in August and the amount involved was 73 million 390 thousand yuan. In 1~8 months, there were 71 illegal cases caused by guarantee and dispute in Wenzhou private lending, an increase of 16.39% over the same period last year.

To this end, the Wenzhou municipal government has issued emergency measures to "maintain stability".

Yesterday's news conference revealed that the next local government will organize the investigation team to enter the city bank branches above the county level. The municipal government organized 25 investigation teams, each of which was led by a deputy county level cadre and stationed in 25 municipal banking institutions.

The investigation team will assist banks to do a good job in docking financing between banks and enterprises, requiring banks not to draw money and not to lend money, to help banks understand the situation of loan companies and prevent the breakup of funds in small and medium-sized enterprises.

At the same time, the government will also encourage and standardize the development of private finance, expand the pilot projects of small loan companies, conduct pilot projects of private capital management service companies, explore the establishment of private lending registration service centers and Wenzhou financial assets exchange, and set up two level "local financial regulatory centers" in cities and counties, standardize the development of private finance and guide private lending activities.