2011: Is Wenzhou In A Bad Way?

Wenzhou Mystique Is disappearing. Here is the birthplace of China's private economy, where entrepreneurs make money. Squander On Bentley Bentley and helicopters.

　　 Shangdu Wenzhou Chronicle

Wenzhou has a long history. Commerce History began to crack.

1876: the Qing government was forced to open Wenzhou to the outside world. Trade 。

1980: a woman in Wenzhou has won the first "business license of individual business" in China. Her shop is only a table.

1991: Wenzhou boss created the first private airline in China.

February 2011: a business organization in Wenzhou says that 70% small business members have cash flow problems.

September 2011: a spectacle production giant has become the most famous walking boss.

October 2011: Wen Jiabao inspected the factory in Wenzhou and promised to provide support to small and medium-sized enterprises. {page_break}

The coastal city is leading China's manufacturing industry, building export industries around products such as lighters, buttons and shoes, and turning itself into a hotbed of investment capital. Wenzhou's nouveau riche has attracted the attention of other parts of China with its unique and no ashamed way of consumption, whether it is buying houses in Shanghai, buying coal mines in Shanxi or buying French wines.

Now in Wenzhou, in the face of the slowdown in export growth, the trust based private financing network, which has replaced bank credit and boosted the feast, is collapsing. Europe's plight is exacerbating export deceleration. Property prices are falling. Local officials say private entrepreneurs in Wenzhou fled to avoid debt and sometimes commit suicide.

In addition, heavy handed rectification, panic caused by food safety problems and serious liquidation of old debts have aggravated the blow of Wenzhou. Wenzhou, which has a population of 9 million 100 thousand, has experienced many disaster years. In July this year, when the motor vehicle rear end accident happened in the outskirts of Wenzhou, the picture of the bullet train hanging on the viaduct seemed to illustrate the bad luck of Wenzhou.

The obstacles faced by Wenzhou's local economy have caused many Chinese to worry about whether the Wenzhou manufacturers, who are famous for their keen response, are in a predicament, which indicates a wider danger.

In Hongkong, you can feel the temperature in China, says Xiao Geng, research director of Fung Global Institute, a think-tank in Hongkong.

More and more people are worried that trouble in Wenzhou is a bad omen, not just in Wenzhou. The brutal price war launched by factories in Wenzhou and other places helped China become the world's number one commodity exporter. But the disorderly collapse of Wenzhou's financial industry this year has been the unfortunate end of the first ten years of China's accession to the World Trade Organization (World Trade Organization).

After the first private business license was issued in Wenzhou in 1980, a number of factories producing cheap and convenient transportation goods were set up in the city. Wenzhou is defined as an industrial cluster City specializing in producing buttons or zippers.

Wenzhou people who live in different places but are closely connected are doing trade everywhere in China. It is estimated that two million of the Wenzhou people live overseas, and have also been involved in the fashion industry in Italy and Africa.

The worry now is how Wenzhou's wealth can provide funds for non bank financing. In such a system, relationships are far more important than collateral. The shadow financial system, which has been used to integrate the funds of relatives and friends, is fast. expand 。 Analysts at IHS Global Insight estimated that Wenzhou's capital controls amounted to RMB 8, 000 billion yuan (about 1, 26 billion US dollars), equivalent to 2% of China's gross domestic product (GDP) in 2010.

Johannsen, a professor at Monash University in Melbourne, Australia (Monash University), said that this is a process of building Pyramid on the bosses of these enterprises. (Graeme Johanson)

Huang Weijian, chairman of Wenzhou finance Port Development Co., Ltd., sitting on a large chair decorated with snake skin, has repeatedly used the word "panic" to describe the loan security of Wenzhou's lenders in recent months, or the most secure way to put it in their own pockets. Huang Weijian explained that the past global downturn did not seem to weigh heavily on China, for example, when the global recession in 2008, China's funds were also tense, but the authorities quickly released huge amounts of credit. He said this year is like a fire in his backyard. {page_break}

In reply to a reporter's question, the office of financial affairs of the Wenzhou Municipal People's government confirmed that the city had experienced blind investment, usury, worrying bad debts, corporate owners and some suicides. Nevertheless, the reply came to the conclusion that the operation of SMEs in Wenzhou is still good this year.

Han Lishi Merle A. Hinrichs, executive director of Global Sources, Hongkong trade service company, said that the funds of Chinese factories were very tight, and Wenzhou's high-risk enterprise strategy made it particularly vulnerable to the downturn.

Recently, many factories in Wenzhou seem to have been abandoned, including Jiadian Shoes Co., Ltd. According to witnesses, the factory's debt laden factory owner fled, and the police clash with paid workers last month.

A factory owner surnamed Wang said that Wenzhou's advantage lies in its cheap products, such as its latest 4 dollar merchandise: a lighter that adorned with Jobs (Steve Jobs) can also be used as a U disk. When it comes to the news of a debt giant eyeglasses production marching into the solar energy industry, Mr. Wang disdains to say, what does he know about high technology?

Huang Weijian of Wenzhou finance Port Development Co., Ltd. affirmed that Wenzhou still has access to financing. He led a reporter through a crowded office like a teahouse.

He spent a little time signing a contract to provide a local businessman with a loan of 1 million 250 thousand dollars to help him repay the first batch of loans in the first batch of bank loans. The two day bridge loan interest rate is equivalent to 36.5%.