"Hollowing Out" Preliminary Appearance - The Yangtze River Delta Is Now Part Of The Downsizing Part Of The Textile Enterprises Are Pessimistic About The Future.

Recently, the survey found that compared with the first half of this year,

Industry "hollow" preliminary appearance

Reporters recently learned that, due to the export and domestic demand is not strong, some production enterprises in the Yangtze River Delta have suffered attrition, stoppage and shutdown. Some enterprises are more pessimistic about economic recovery and industrial prospects, and have begun to shrink production capacity or even sell machines and rental factories. The so-called "pformation" has not really appeared, but has turned to operate small loan companies or investment industries.

According to the responsible person of Wuxi development and Reform Commission of Jiangsu Province, 1-8 enterprises in Wuxi cancelled 1953 enterprises, including 440 manufacturing enterprises, accounting for 22.5%, ranking second in various industries.

At the same time, the city has more than 12000 new domestic enterprises, of which the largest number of investment companies, roughly estimated to account for 30%, basically every township has a small loan company.

This shows that a large number of funds withdraw from the real economy, turn to equity investments, small loan companies and so on.

In the second half of 2011, several Shanghai textile and garment enterprises also raised more than one hundred million yuan in Jiangsu to start a small loan company. In less than a month, they all gave loans to real estate development enterprises, and their profits were as high as 25%.

Zhu Zhengping, chairman of Shanghai Textile Association of Commerce and industry, predicts that according to the current situation, the textile and garment industry, which is purely engaged in foreign trade orders, will still have two years' survival time in Shanghai. It will not be more than five years to pfer to the field.

Now some enterprises are lending their own funds to small loan companies, which can earn 15% of the profits, while the main business is constantly shrinking, or even selling machines and rental factories.

The consequences of "hollowing out" industry in Wenzhou have already appeared.

Zhou Dewen, President of Wenzhou SME Development Association, told reporters that in the past two or three years, quite a lot of enterprises in Wenzhou have drawn production funds and invested in private lending under the temptation of profits.

Recently, the number of private lending cases in Wenzhou has increased, and many well-known businesses have gone bankrupt, and the boss has absconded.

Since the beginning of this year, more than 50 people have been fleed by large scale business owners in Wenzhou.

In late September alone, there were 3 causes of debt crisis in Wenzhou. The boss was forced to go to a blind alley to commit suicide, resulting in 2 deaths and 1 injuries.

The situation faced by Wenzhou enterprises has also attracted the attention of the central government.

On October 4th, Premier Wen Jiabao of the State Council went to Wenzhou to investigate the development of small and medium-sized enterprises. He asked the government to focus on small and micro enterprises as the key support objects, strengthen supervision and guidance for private lending of small and medium-sized enterprises, take effective measures to curb the tendency of usury and properly handle guarantees and enterprises between enterprises.

Lack of confidence in manufacturing industry is a new problem

"There is no endogenous growth momentum, and there is no real starting point for pformation.

Now turn it off and leave some money. Later, it is possible that these enterprises will not even have the capital.

The textile and garment industry in Shanghai is shrinking. From the peak of the 550 thousand army to only 20 thousand people now, there may be only a few thousand workers in the production line.

Most importantly, in April this year, many manufacturing enterprises' confidence was lower than that of the financial crisis in 2008, so that some enterprises were ready to stop and turn around.

Dong Qinxia, chief engineer of Shanghai Textile Co., Ltd.

From the sales data of Suning Appliance, Gome and other home appliance chain enterprises in 1-9 months, the sales scale of single stores in the Yangtze River Delta region, especially in the Shanghai market, dropped by 10% compared with the same period last year. The head of a household appliance chain store in Shanghai lamented that for the first time in nearly 10 years, the market was hard to do.

South Korea, an electronics consumer goods manufacturing company, said that sales continued to decline this year. As the price of electronic consumer goods changed too fast, enterprises did not dare to have too much inventory, and the factory production plan could only go one step at a time.

What is most worrying now is that the consumption recession will continue until next year or even the following year. Even if the investment is not increased, the sales will not improve.

SHARP Commerce (China) Co., Ltd. also admitted to reporters that because of the sluggish sales market, its air conditioning plant in Shanghai has been shut down for several months.

Be vigilant in expanding the scope of "hollow" industry

Zhou Dewen said that there are three obvious signs of Industrial Hollowing: first, a large number of capital escaping from the industry; second, a large number of enterprises outflow, and even to foreign countries; third, many enterprises use industrial platforms to obtain loans from banks, but they do not have earmarked funds, but invest in mines, real estate and so on.

At present, the industry "hollowing out" has an expanding trend. In the past few years, the phenomenon of pferring funds from real economy to real estate and loan sharking in Wenzhou has been pferred to inland provinces.

"Many traditional manufacturing enterprises lack confidence in industry and industry is unstable, which is very worrying."

Zhou Dewen said that there are currently about 36 SMEs in Wenzhou. In the first half of the year, 20% of the enterprises were in semi shutdown or downtime. Now this figure has increased to about 30%. If there is no further rescue, maybe 40% of the SMEs will stop working or stop half after the Spring Festival next year.

The Zhejiang investigation team of the National Bureau of statistics and the Zhejiang Provincial Bureau of statistics showed that the business climate index of Zhejiang in the three quarter was 133, down 6.8 points compared with the same period in the three quarter, down 2.6 points, and still in the "more prosperous" range.

The confidence index of entrepreneurs fell slightly, to 123.7, down 10.5 points and 4.1 points respectively over the same period last year and the two quarter of this year.

Small businesses in the Pearl River Delta region also face greater pressure to survive.

Recently, the National Development Research Institute of Peking University jointly visited the 95 small businesses, 11 professional markets and 15 local banks in 6 counties and cities in the Pearl River Delta, and conducted online research on 2889 small businesses in the Pearl River Delta by means of a network questionnaire. The results showed that the increase in raw material costs led to a sharp decline in the profits of small businesses in the Pearl River Delta, compared with the average in 2010.

In addition, the survey shows that domestic and foreign orders shrinking and exchange rate and other factors are also squeezing profits. Small businesses can only consume the accumulated difficulties in the good economic situation in 2009 and 2010.

72.45% of small businesses expect no profit or a small loss in the next 6 months, and 3.29% of small businesses expect to lose substantially or go out of business in the next 6 months.

The decline in profits has become the hardest part for small businesses this year.

Prevent hibernation enterprises from swallowing economic vitality

According to the survey by the economic reference daily, these enterprises, after facing many pressures, did not choose to withdraw directly from the industry. Instead, they did not act, do not quit or write off. Such hibernating enterprises might devour the vitality of the economy.

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Hibernation enterprises frequently appear.

Economists Gu Shengzu said recently that 60% to 70% of China's small and medium-sized enterprises are facing severe difficulties in survival, and the remaining 10% are upgrading, while only 20% are in pition.

According to the statement, the government authorities did not appear a large number of small and medium-sized enterprises closed down because there might be a lot of "half dead" enterprises, but did not go to the management department to cancel them.

"During the global financial crisis in 2008, everyone was spending the winter, but some enterprises' hibernation" has not waken up to now.

Zhu Zhengping said that in recent years, Shanghai Textile Association and its member units found that 20% to 30% of the enterprises had stopped working, stopped production or no longer engaged in the industry.

Wan Legang, chairman of Shanghai Si Duke Clothing Co., Ltd., told reporters that at present, the company has only one more than 1000 square meter warehouse in Shanghai and an office.

Previously, he had shut down three garment factories in Pinghu, Jiangsu, Huaian and Shanghai Jiading in Zhejiang, and only 3 of the more than 50 customers in Europe and America.

Some enterprises actually have no innovation and pformation, but they can only change money in the capital market.

In the past 18 years, a listed company in Jiangsu province has changed its largest shareholder in 6 years. The main industry has changed from Conghua to woolen textiles, from wool and real estate to bio pharmaceutical products. Now it will be converted into coal chemical industry.

Financial review commentator Ye Tan said that like this "shell company" which is frequently restructured, it will be difficult to bring about substantial changes at the operational level. Even many listed companies can only rely on subsidies from the government to make profits.

Zhang Huiming, director of the Enterprise Research Institute of Fudan University, told reporters that the fundamentals of the Yangtze River Delta region are still good, but only a small number of enterprises have problems.

Small and medium-sized enterprises are facing severe pressure to survive, which has attracted the attention of government departments. Many policies have been put forward to support small and medium-sized enterprises. The key is to put these policies into practice, eliminate a number of them, upgrade a batch, and pform a batch, leaving enterprises with stronger risk resistance.

Government assistance should be chosen

For some enterprises in the face of difficulties, no action, no exit, no write off "hibernation" behavior, some experts think that should be treated differently, relief is not seen, let the survival of the fittest market mechanism to prevent hibernation enterprises to swallow economic vitality.

"Enterprises are in the" zombie "state, like vegetative people, although alive, but need help at all times, can not wake up is hard to say.

A well-known financial commentator, ye Tan, said that enterprises that were barely profitable by government subsidies and could not form their own hematopoietic mechanisms for many years would be eliminated.

In the 90s of last century, the Japanese economy gradually entered a recession. The Japanese government implemented various protective policies. As a result, a large number of "zombie" enterprises that should have left the market survived, resulting in a longer recession.

During the global financial crisis in 2008, all countries rescued the enterprises and financial institutions that should have failed, resulting in the emergence of a large number of hibernating enterprises, but on the contrary, the financial crisis lasted for a long time.

Zhang Huiming believes that the small and medium-sized enterprises themselves have the characteristics of high knockout rate. Most SMEs are not big and do not do well, which is a normal phenomenon.

Experience shows that the proportion of newly established SMEs in five years is about 80%, and most of them are failures caused by their own factors, such as enterprise management, architecture design, process, marketing, financing and so on.

The financial crisis played a catalytic role and accelerated the elimination of some enterprises.

Ge Dongbo, deputy director of the coordination office for promoting the development of small and medium enterprises in Shanghai, believes that, referring to foreign experience, it is generally necessary to provide policy support for three types of enterprises: first, high-tech enterprises, which have higher growth potential, mainly direct financing, seek listing to collect funds for development; two, labor-intensive enterprises, the state has certain policy support for such enterprises lending, thereby ensuring social employment; three, due to the financial crisis and other occasional factors leading to insolvent capital enterprises, such enterprises can get back to life if they are guaranteed or supported.

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Peng Wensheng, chief economist of CICC, also believes that government assistance should prevent moral hazard and avoid adverse selection mechanism to encourage irresponsible investment and financing.

In the long run, the high interest rate of private financing is corresponding to the high risk it faces. We should cultivate the development of high-yield bond market and standardize the management of such financing needs.

Quickening the pace of financial market opening to China

In view of the present situation of small and medium-sized enterprises, many experts believe that, on the one hand, we must prevent hibernating enterprises from dragging down the real economy, and resolutely eliminate backward, high energy consumption and high polluting enterprises. On the other hand, we should also help growth enterprises that meet the requirements of industrial development, lighten the tax burden of enterprises, relax credit, and encourage more private capital to enter the financial field to solve the financing difficulties of SMEs.

Experts believe that the fundamental way to solve the financing difficulties and financing of SMEs is to speed up the pace of financial market opening to the outside world, allow private capital to enter more financial fields and set up more microfinance companies.

At the same time, differential interest rates should be implemented to reduce lending rates to SMEs in the real economy.

Guo Tianyong, a professor at the school of finance at Central University of Finance and Economics, said that looking back on these years, whenever the financing difficulties of small and medium-sized enterprises were encountered, the voice of small and medium-sized banks would be very high.

This time it seems to be no exception, in order to prevent relapse into "good scars and forget the pain" of reincarnation, need more realistic, more maneuverable plan.

Therefore, the establishment of small and medium banks can start with small loan companies, and consider the selection of a group of small loan companies with outstanding performance.

In addition, Zhou Dewen, President of Wenzhou SME Development Association, also suggested lowering the threshold for SME listing.

Nowadays, enterprises are overly dependent on indirect financing. More than 80% of their capital comes from banks. When monetary policy is tightened, enterprises can not survive, and 80% of foreign countries are directly financing.

Yu Xiaodong, executive director and general manager of Shanghai Huijin finance Company limited by guarantee, suggests that bond financing can undoubtedly reduce the cost of financing, and the issuance of corporate bonds needs to lower the threshold and further marketization.

At present, the most important problem of small and medium enterprises through bond financing is the lack of credit of small and medium-sized enterprises, and the lack of credit for issuing bonds. Therefore, it is financing through the form of collective bonds and collective trust, but the scale is not large, which needs government discount and local government's financial support.

Zhu Jianfang, chief economist of CITIC Securities, believes that the "Finance + fiscal and taxation" policy for small and micro enterprises can alleviate the contradiction between business operation and financing to a certain extent, but there are two points to be concerned about.

First, the policy is aimed only at small and micro enterprises, while the medium-sized enterprises that account for 30% of the loan scale are not supported by policies. Some enterprises may have greater impact on the economy and employment activities. Two, the similar policies promulgated by the CBRC in May this year did not achieve the corresponding results. The reason is that the bank's credit crunch is still widespread under the dual influence of the tight monetary environment and the economic downturn.

The impact of fiscal and taxation policies is relatively slow. Therefore, whether this policy can really alleviate the operating difficulties of SMEs, the implementation of policies and measures is very critical.