Wenzhou Small And Medium-Sized Owners Said That The Bank Loans Were Forced To Turn To Private Lending.

During the long holidays of "eleven", many

The near future

During the "eleven" long vacation in Wenzhou, the temperature dropped suddenly and cloudy rain enveloped the city.

The mood of many small and medium sized entrepreneurs in Wenzhou is as gloomy as that of the weather. More and more people are worried about the news of the boss's "running away" and the worries about the whole capital chain or the disruption. Acquaintances will meet privately and talk about the latest news everywhere.

On October 4th, Premier Wen Jiabao of the State Council went to Wenzhou to investigate the development of small and medium-sized enterprises, and clearly put forward measures to increase the tolerance ratio of non-performing loans to small businesses and increase the support of financial and taxation policies to small and micro enterprises.

At this point, the running and jumping situation of Wenzhou's small and medium-sized enterprises has attracted high attention for six months.

middle-sized and small

Since April this year, the "run away" incident of Wenzhou's small and medium-sized enterprises has been reported to the press from time to time.

Media reports said that the Wenzhou business owners who had "run" or even jumped from the capital chain broke up to 25 people since September.

They either borrowed money from usury, but their operating profit was not up to the high interest they needed to repay, or the huge amount of funds guaranteed by themselves could not be withdrawn.

"There is no way to complete statistics on the running enterprise owners and the shutting down enterprises. Those who have surnames are relatively large enterprises. Those small and micro enterprises are not in the statistical range at all."

Zhou Dewen, President of Wenzhou SME Promotion Association, told reporters that with the addition of small and micro enterprises, enterprises running, stopping and closing down were far more than the above figures.

"Since January this year, I began to appeal to the government departments to pay attention to the survival situation of SMEs in Wenzhou, but failed to attract enough attention."

Zhou Dewen said, "in the first half of this year, some enterprises were in a state of shutdown or semi shutdown, but these are small businesses with no reputation, so no one has taken care of them."

Zhou Dewen kept repeating to reporters that if early measures were taken, it might not spread into the present situation.

Bank interest is high, financing is nowhere.

Wang Chonghuan, chairman of Dongxin group, told our reporter that the crisis of the capital chain crisis of SMEs in Wenzhou has been widespread. Judging from the feelings of Dongxin group, the biggest pressure of enterprises comes from excessive bank lending rates.

"At present, the actual loan interest of enterprises has reached 15%-20%, while the rate of return of a normal enterprise is around 10%, which means that all profits are not enough for the banks. Why do not the owners of Wenzhou want to do business?

It is because industry is always losing money.

Wang Chonghuan said that although it is not difficult to borrow money from banks, such high interest rates make it difficult for enterprises to bear.

He calculated an account. If an enterprise loans about 2000000000, according to the actual interest rate, 300 million interest will be paid to the bank every year.

"The funds of enterprises are becoming more and more intense, and our confidence in doing business is not enough."

A business owner, who declined to be named, told reporters that his company still had difficulty in obtaining loans from banks. Even though loans were paid, businesses did not have such high profits to pay interest.

Zhou Dewen pointed out that the breakage of most capital chain is mainly due to the persecution of banks and private lending to enterprises.

He introduced, "we have a member enterprise also fell, his case is very typical.

The owner owed 50 million yuan to the bank. The bank promised to repay the money first and then lend it to him.

Because he didn't have so much cash, he first borrowed the short-term private usury to return to the bank. After the repayment, the bank changed its face and no longer gave him loans.

Qiu Shizhi, director of Zhejiang times business law firm, believes that, apart from the impact of the aftermath of the financial crisis in 2008, the 4 trillion rescue policy is also an inescapable factor to break the capital chain of SMEs.

"After 4 trillion, the government accelerated investment and banks did not risk loans. Some enterprises could not resist the temptation to invest hundreds of millions of loans in real estate and solar energy. Now these two industries have fallen sharply. Credit is used up, and enterprises can not be closed down. They can only turn to private lending market, and usury comes in, that is, poison comes in."

Huge private lending market

Enterprises can not borrow money from banks, turn to the developed private lending market in Wenzhou, and the owners of running or jumping buildings are more or less associated with the private lending market.

The Wenzhou model has been used as an experimental field and example for private finance. Large scale private lending has provided new financing channels for SMEs in Wenzhou, and also has its own characteristics of high yield and high risk.

With the continuous tightening of inflation and liquidity this year, private lending in Wenzhou has been unprecedentedly active and lending interest has gone up all the way.

Zhou Dewen said that the current rate of private lending in Wenzhou has exceeded the highest historical value, with a monthly interest rate of 3-6 points, while others are as high as 1 cents, or even 1 cents and 5 cents.

The annual interest rate is as high as 180%.

Respondents said Wenzhou's "universal borrowing" is by no means an exaggeration.

Data show that 89% of households, individuals and 59% of enterprises in Wenzhou are involved in private lending.

With the collapse of Domino's order, the loan crisis is not limited to Zhejiang, but also affects Jiangsu, Fujian, Henan, Inner Mongolia and other provinces and regions.

Qiu Shizhi pointed out that the private lending market is underground operation, it is very difficult to make accurate statistics. In Wenzhou, some people do not have their own money, raise money and put them out with high interest rates; others have their own platform for industry; in Wenzhou, there are large factories which are easier to get bank loans, and after industrial profits decline, in order to subsidize industrial losses, the money borrowed from banks is released at higher interest.

This phenomenon is widespread in Wenzhou.

"Wenzhou's clothing industry, lighters, glasses, leather and so on are basically unprofitable, so they develop non major businesses, and selling the renminbi to make a difference is also one of the main businesses."

Qiu Shizhi said.

The sources of private lending are complex.

Zhou Dewen said that because of overprofit, this huge market attracts all kinds of funds, some of which are engaged in private lending for a long time, funds for listed companies, and funds for state-owned enterprises and civil servants.

The process of private lending is also very simple.

A number of supportive policies will be introduced.

At present, the survival situation of small and medium-sized enterprises in Wenzhou has finally attracted the attention of governments at all levels.

In September 29th, the Wenzhou municipal government issued a number of measures to solve the debt crisis of small and medium-sized enterprises, including requiring banks not to draw funds, and the local government to deploy 25 working groups to the banks in the city, so as to prevent banks from pumping funds and pressure loans to break the chain of SMEs.

Wenzhou banking regulatory bureau has also asked local banks to lower lending rates. The maximum floating rate should not exceed 30%. If the financial crisis involves a number of bank loans, banks should "withdraw from the same bank" and not draw funds separately.

On October 4th, Premier Wen Jiabao of the State Council went to Wenzhou to observe the survival of small and medium-sized enterprises during the National Day holiday.

He said that after all, "running road" and "jumping building" are very few in Wenzhou.

He asked the government to make clear the small and micro enterprises as the key support objects, strengthen the supervision and guidance of the private lending of small and medium-sized enterprises, take effective measures to curb the tendency of usury and properly handle the problem of guarantee between enterprises and the breakup of enterprise capital chain.

The next day, reporters learned from people familiar with the matter that Hu Fulin, the chairman of Xintai group, a sensation of running, returned to China in October 5th to negotiate corporate restructuring.

Insiders predict that the collapse of SMEs in Wenzhou will become the dawn of the government's final intervention.