Wenzhou Businessmen: Lost In Usury Collapse

"In Wenzhou, the current greeting is not that you were hurt in the financial turmoil, but how much you lost."

suffer greatly

In 2011, the market regulation policy was pressing step by step, private lending.

Mass disappearances

"This time, Zhejiang, Wenzhou, Shaoxing, Ningbo, Taizhou and other places, dozens of business owners every month to run away, there are also a small number of enterprises because of debt suicide boss."

Mr. Li said.

As early as April this year, Huang He, chairman of Jiangnan Leather Co., Ltd. of Longwan District of Wenzhou, ran into debt for more than 300 million yuan, which was regarded as the source of Wenzhou boss's running road.

At the beginning of July, Wang Xiaodong, a well-known entrepreneur in Longwan District, raised nearly about 1000000000 Yuan and was once "missing".

With the deepening of the disappearance, Hu Fulin, chairman of Wenzhou's "glasses king" Zhejiang Xintai Group Co., Ltd., in September, was in debt for 800 million yuan.

After the collapse of some large enterprises, the enterprises that guarantee each other will often be involved, and the business capital chain will also be affected.

The Domino effect caused more and more Wenzhou enterprises and even individuals to get into trouble. This led to the credit crisis of Wenzhou and broke the credit system of Wenzhou.

By the end of September, the owner of Wenzhou Mermaid shoe industry and Wenzhou Zheng Deli of Lucheng, Wenzhou.

Late winter

Hu Fulin, who made spectacles, had a 2 hundred million output value a year. Now he owes a lot of money to high interest payments.

Mr. Li said.

The collapse of usury has something to do with this year's austerity policy, which is also tied to the easing of monetary policy after the 2008 financial crisis.

In recent years, with the gradual increase of land costs, production costs are gradually improving. On the other hand, the appreciation of RMB makes export pressure very heavy, and the profits of enterprises are too thin to sustain. The situation of hollow enterprises in Jiangsu and Zhejiang provinces is becoming more and more serious.

Many enterprises regard their main business as a capital platform to finance the banks, invest or lend money that they have mixed up, so there are speculators, fried families and fried garlic families.

In early 2009, the state put 4 trillion and the credit line relaxed nearly 10 trillion, which led to the high investment atmosphere and the soaring housing prices. Most enterprises were involved in various investment projects more or less.

However, in 2011, the continuous regulation and control policies far exceeded the expectations of many enterprises, and market funds became increasingly scarce. Many enterprises turned to private lending, while three points (36%) interest rate was the lowest until the last capital chain broke.

"In fact, since the financial turmoil in 1998, the domestic market has been booming.

Especially after 2002, in the big trend of the continuous rising of real estate, many entrepreneurs who have been doing traditional industries are looking at the billionaires who have been rich overnight. Their minds are gradually unbalanced, so they have joined the investment force.

Mr. Li said.

In Mr. Li's view, the 2008 rescue market delayed the coming winter, retaliatory expansion of investment demand, and a retaliatory rise in housing prices. Many enterprises returned to life but did not learn from it. No small businesses that had never been subjected to genuine economic turmoil had no history to learn from.

In mature markets, the debt ratio of enterprises is generally 30%~40%, while the liabilities of some small businesses in China can reach 90%.

Lack of risk awareness, excessive use of financial leverage is the main reason for this running tide and jumping.

Mr. Li believes that after this "economic winter", a number of enterprises will be hit hard by the market, and a number of enterprises will also be achieved.

Some of the previously conservative enterprises are now in the golden moment of development. Their capital flow is very smooth, and they do not need to go to bank loans. They are expected to grow bigger and stronger in the next round of the economic cycle.