The Wenzhou Crisis Need Not Be Saved Or Saved.

Recently, Wenzhou The city said Wenzhou enterprises did not fall into the "collapse tide". According to the statistics of the Wenzhou Municipal Bureau of statistics, as of July, there were 326 enterprises in the industrial enterprises, 198 less than the beginning of the year, with a loss of 8.3%, 5.5 percentage points lower than the average level of the province.

Nevertheless, the crisis facing Wenzhou is still worrying. With cause capital There are more and more Wenzhou entrepreneurs who have run away from the chain. This has caused some chain reactions. Banks and usurers are beginning to worry about the safety of funds and start borrowing money. This trend may cause the risk of the local financial system, and the appeal for saving the market has started to soar.

The official recognition of Wenzhou is that the scale of local private lending is equivalent to that of Wenzhou. Bank The 1/5 of the loan. According to the Research Report of CLSA, the total amount of unpaid loans in Wenzhou may reach 800 billion yuan to 10000 billion yuan. As some local enterprises begin to go bankrupt, it is estimated that 10% to 15% of this year's outstanding loans will become bad debts.

It has been reported that Wenzhou has applied to the people's Bank of China for 60 billion years' refinancing of financial stability for 1 years through the provincial government, which is specifically used to support Wenzhou bank institutions to increase the financing scale for difficult enterprises. According to the position of relevant departments, the tolerance of small businesses' non-performing loan rate will be increased to 5%, because the loan difficulty of SMEs is a national problem.

Because of the long-standing problem of small and medium enterprises loans caused by the financial system, some commentators tend to blame the financial crisis on Wenzhou's financial system and the monetary tightening policy, and the reason why Wenzhou's industry is withered is that the "national withdrawal" or the tax burden are too high. This kind of market imperfections caused some arguments to sympathize with those bosses in Wenzhou, thus forming an atmosphere of support for rescuing the market and covering up the truth of the Wenzhou crisis.

We believe that those entrepreneurs on the road are not only unworthy of sympathy, but they are also a huge destructive factor, causing credit crisis, because running at any time will deepen the risk perception of borrowers to small and medium enterprises, thus making the financing of this group more disadvantageous. Many of them are fake bankruptcy, fake running and fraudulent activities. According to a large number of media survey, usurers basically did not borrow money to maintain the capital chain of enterprise production, but instead switched to other fields, such as various asset speculation and even gambling. Of course, this can not be compared with the overall development dilemma of small and medium-sized enterprises.

The crisis in Wenzhou is derived from the Wenzhou model. The essence of this model is to produce goods at low cost and to occupy the market with low profit margins.

When this pattern is overloaded and costs rise sharply, there is no way out. This prompted Wenzhou people to turn to asset speculation, such as real estate, stocks, commodities and so on. When there is no room for industrial and asset speculation, the present crisis is brewing. The Wenzhou model is the goal of making money at the fastest speed. This is a very short-term behavior. Some Wenzhou people do not have a century old shop, but just a business. This is almost a copy of the Chinese model. China occupies the international market at a lower price, but it is not sustainable under the premise of consumption of resources and low income of workers.

The crisis in Wenzhou today may be tomorrow's crisis in China: the real economy is deteriorating due to rising costs and overcapacity, and a large number of idle capital flows into the asset sector to blow up bubbles. If not timely, then financial risks will eventually arise. {page_break}

Therefore, the crisis in Wenzhou can not be saved. Salvation will only encourage the trend of private speculation and generate moral hazard. The only way out for Wenzhou is transformation, just as the pressure on the Chinese economy is, rather than continuing to rely on low-cost commodity manufacturing or asset speculation. China must recognize a fact that with the sluggish global demand and the ineffective expansion of domestic demand, excess capacity of investment in China during the bubble period will inevitably be eliminated, and those blind expansion enterprises must be punished by the market.

Transformation is aimed at improving the ability of technological innovation and product quality, achieving the upgrading of enterprise products, and taking advantage of brand advantage rather than price advantage to occupy the market. But the Wenzhou model, which won the price advantage, is obviously difficult to change the speculative thinking of making quick money in the short term. Because the direction of transformation is really to do business, with scientific research investment as the premise, and these inputs may not be effective in the short term. Some Chinese enterprises may have difficulty in adapting to the transformation requirements from cultural habits, thus impeding the transformation.

As far as the system is concerned, rigid education system is the main reason for restraining the emergence of innovative talents. We must liberate the excessive control and intervention of education, and vigorously promote the work of intellectual property protection. At the same time, the government should also liberalize the control of the service industry and reduce the tax burden, so that capital can be transferred from manufacturing to the third industry. The crisis in Wenzhou has given us a wake-up call ahead of schedule. We must speed up our transformation efforts instead of continuing to generate more financial cancer in waiting.