The Government Put The "Life Buoy" Hard To Save The "Drowning" Shoe Industry.

If I arrive today Wenzhou, Zhejiang In Guangdong, Dongguan and Foshan, you will see a very frightening sight: in the torrent, a group of "drowning men" are struggling and calling. On the shore, there are several groups of people watching. Some of them are arguing fiercely. Lend a helping hand Some people come up with various styles. Life buoy "To make all kinds of rescues. attitude 。

The voice about whether to save or not basically comes from the two circles of politics in the north of the Yangtze River. They believe that this is the end of the usurers' fault. Why should they take the taxpayers' money to save them? And even if it is saved, no money will fall into the hands of the industrialists.

Let's take Wenzhou as an example. In this area, the history of usury is almost as old as the history of reform and opening up. This is the earliest germinal place of China's individual and private economy, especially footwear industry. As early as 1984, the first private money bank appeared. Its wooden cards only hang out for a day and were forced by the local government on the grounds that they did not conform to the central policy. In the past more than 30 years, private enterprises have encountered credit problems. Predicament We can use three 70% to describe them: they have solved seventy percent of the employed population, but only seventy percent of the enterprises have received bank loans, and seventy percent of these loans are short loans within one year. Therefore, for a long time, "illegal lending" and "short loan and long investment" are a common and dangerous phenomenon.

The first major crisis in Wenzhou usury was in 1986, when the dead and runaway "lift up events" occurred. Finally, the government cracked down on the way of grasping and executing the meeting. The period of inflation in 1993 has happened again. Over the next fourteen years, usury has been there but there has been no major crisis, and private enterprises in Zhejiang, Guangdong and other places can grow rapidly, which is closely related to an active non-governmental financial environment. One of the most striking facts is that in the past macro control in the late 1990s to 2004, private enterprises in Zhejiang and Guangdong had stronger risk tolerance than other enterprises. As long as you walk into Wenzhou, you will find that the masses of the people here are not "gnash teeth" as they imagine. On the contrary, their rules of the game have been relatively standardized. In Chinese history, folk credit has always been higher than government credit, from cadres to teachers, and many people and families have participated in the tradition of private lending.

Usury once again sounded the alarm of the crisis in 2007. The reason is: the scale of private enterprises is bigger and bigger, and the scale of underground banking market has not matched with them. Therefore, when the economic environment is overheated and the government controls in the form of credit control, the demand for funds increases suddenly in a very short period of time, resulting in the interest rate rising in the underground credit market. However, in order to obtain "help money", enterprises have to dodge their thirst and even carry out extremely dangerous "credit mutual insurance". This is a terrible sight of "falling down".

From 2007 to 2008, there was a series of failures of large-scale private enterprises in Wenzhou and Shaoxing areas of Zhejiang. The "jumping events" and "vertical and horizontal events" had caused a sensation throughout the country. At that time, the government took part in the solution to the problem by injecting loans from commercial banks in the form of land injection to help enterprises restructure. Fortunately, the housing market rebounded after 2009. Finally, the government, syndicate and enterprises collectively solved the problem by changing the nature of the land and selling the spanfer.

So, is there such a "life buoy" in our hands today?

First, the central government. Premier Wen Jiabao went to Wenzhou and Guangdong in recent days, showing support and assistance attitude, and even heard that the central bank passed the loan of 60 billion yuan in a "hot and urgent way". The news was later denied. In October 12th, the State Council held a executive meeting, and launched a series of preferential measures such as reducing income tax by half. The central government's positive stance is certainly gratifying. However, from the perspective of the history of reform, we have seen that over the past thirty years, the crisis of private enterprises has never been rescued by the central government's policy. Therefore, "easing money" is hard to achieve success. Moreover, more than 70% of small and medium-sized enterprises have nothing to do with "money".