Wenzhou'S Private Credit System Collapsed &Nbsp, And The Boss'S Running Phenomenon Still Happened.

In accordance with the local government's policy measures in September 2011, the government focused on maintaining stability and prohibiting the vicious loan collection of usury, allowing enterprises to relieve space and extend some usury dates from September to the lunar new year.

But during the period, there was no new large sum of money to revitalize this super capital chain. Neither the government nor the private sector could reduce the hidden risk of huge usury funds in the short term.

At the end of the year, the phenomenon of enterprise owners escaping still took place. The names of new enterprises such as Wenzhou Nanxi River agricultural group, Haihe pharmaceutical and pan FA industries appeared on the list of problems.

Local courts have also begun to be cautious.

Experts believe that the problem of Wenzhou's private financial system, apart from the whole

At the same time, this kind of civil crisis is spreading to traditional financial institutions. The non-performing loan ratio of Wenzhou's banking industry has been rising for the first time in several years.

According to the local banking regulatory bureau estimates, the bad rate will rise from 0.4% in early 2011 to about 0.7%~0.8% now.

"The essence of finance is to serve the real economy, and we must ensure that funds are invested in the real economy."

The fourth national financial work conference has just concluded clearly the core issue of finance.

For Wenzhou, the unavoidable path is to rebuild folk credit, guide private capital to the real economy, and complete the upgrading and upgrading of Wenzhou's economy.

Every year, enterprises must pay wages, materials and other expenses, and repay bank loans.

At this time of the year, when there were enterprises looking for the founder of the first private bank in New China, and Fang pielin, director of the Wenzhou Fangxing Company limited by guarantee, they could borrow money by making a few phone calls.

"There is nothing we can do now because there are too many roads to run, and the money of the people has become dead money, and the rich are unwilling to lend it. This is the biggest difficulty facing the enterprises".

Fang Peilin said.

A local financial lawyer in Wenzhou told reporters that since October last year, private lending cases have been increasing, and the court is facing greater pressure on filing cases.

Reporters recently learned that, in the first half of 2011, Wenzhou Nanxi River agricultural group, which was busy for restructuring the shares of Lantian and Hubei, failed to succeed in the case of backdoor listing, and there was a break in the capital chain.

Prior to November, the local website disclosed that two of the chairman and general manager of Wenzhou PFA Industrial Holdings Limited were already on the run, involving about 90000000 yuan in private lending. At the same time, ye Ho, chairman of the Haihe pharmaceutical company, sought to restructure the government for financing 1 billion 300 million yuan for the private sector. At present, the company has entered the asset inventory stage.

According to local media reports, in January 14, 2012, the Wenzhou chamber of Commerce in Yueyang, Hunan Province, hung Chang Hung Hung herself in the office of the 9 floor of a building in Baili Road, Wenzhou.

In addition to the previous Ouhai Xintai group, Zhejiang mailan industry, and the running of bosses such as Hong Niu, Jiadian, StarCraft and so on, there has been no accurate statistics on the running and suicidal cases of business owners and usurer in Wenzhou area over the past year.

Under the running tide, Wenzhou's long established grass-roots financial credit system has been broken.

"In the past, two acquaintances borrowed money to make an IOU. Now Wenzhou people no longer trust each other. Borrowing money must be secured or guaranteed, or simply not borrowed."

A local financial regulator in Wenzhou said.

The destruction of the private credit system has increased operating costs for enterprises.

At the same time, enterprises mostly use bundled guarantee from bank loans. An enterprise runs on the whole guarantee group and guarantee chain, and begins to spread to financial institutions.

The data show that as of the end of October 2011, the 87 enterprises that were monitored by relevant departments in Wenzhou involved 1 billion 586 million yuan in bank loans and 906 million yuan in bills. Among them, there were 153 enterprises in the first level guarantee chain, involving 5 billion 75 million yuan in bank loans, and 353 in the two guarantee chain enterprises.

In order to alleviate the risk of the system, the Wenzhou banking regulatory bureau began in November 2011, separating the bundled guarantee and dismantling one one of the loans.

The reporters also learned that the banking industry was starting to prepare for a rainy day.

At present, the local banks in Wenzhou are ready to deal with the risk of default in the first quarter of this year, reserve legal talents or carry out corresponding organizational structure adjustment, and increase the collection of non-performing assets.

The deadlock of grassroots Finance

A member who participated in the restructuring of Xintai group told correspondents that at present, the restructuring of Xintai group was stagnant due to the lack of funds.

The formal finance based on the modern banking industry and the structure of two yuan coexist in the traditional capital market, which are mainly composed of association, fund-raising and private lending, has been considered to be a major feature of Wenzhou's financial reform and innovation over the past 30 years.

The local government believes that the two yuan financial structure complements the development of the local individual economy and small and medium-sized enterprises, and plays an important historical role in replenish financing, venture capital and optimize capital structure.

In the early stage of Wenzhou's economic development, private capital played a vital role in the development of the real economy.

In Wenzhou, 98% of the market players are private enterprises, of which 80% are small and medium sized enterprises, especially small and micro enterprises, which are hard to obtain financing under formal financial institutions.

But in recent years, the short board of Wenzhou's grassroots finance has become increasingly prominent.

In terms of mode of operation, private lending in Wenzhou is generally free of collateral and collateral. Both parties borrow only one debit note, some do not even need to borrow the loan, and rely entirely on oral credit. When the borrower loses money or fails, the loan party will face extremely high credit risk.

When this mode entered the tense banking sector in 2011, with the large-scale participation of private capital in the ranks of funds, the return of the real economy could not be covered by high capital returns.

An official of the Wenzhou municipal government believes that today's private financial crisis in Wenzhou is related to the big economic environment.

As Wenzhou's SMEs have an outward dependence of 60%, more than 70% of Wenzhou's SMEs are exporting directly or indirectly.

After the international financial crisis, private capital, which could not find a way out for investment, began to pursue various asset investments.

At the same time, the profit driven characteristics of private capital also make the natural capital flow to higher return industries and directions.

After 2008, Wenzhou's capital began to withdraw from industry. Some small and medium-sized enterprises were not interested in production, and some of the credit funds obtained from banks were used for private lending, or to the high return capital market.

Stocks, real estate, fried garlic and so on become commonplace.

Data show that in 2010, half of the top 100 enterprises in Wenzhou were involved in real estate.

Since 2011, the economic situation at home and abroad has tightened, and the cost of production capital, material costs and labor costs have increased. The profit margins of Wenzhou's small and medium-sized enterprises have been shrinking and the industry is generally losing money.

With the collapse of the folk credit system, the "deadlock" of Wenzhou's folk grassroots finance has been exposed.

The above local private lending participants believe that such a private financial system without guarantee, mortgage and lack of effective supervision has its own financial defects and hidden systemic non-governmental financial risks.

"Credit destruction can not be resumed in one or two days."

Fang Peilin said that through the improvement of the private financial system, the guarantee institutions and intermediaries should be introduced into the chain of private lending, supplemented by the operation of sunlight, so that the whole chain will become more rational and gradually establish a new non-governmental credit system.

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The root is lagging behind in industrial upgrading.

In the 4 years, the Wenzhou model seemed to have gone from heaven to hell.

In 2007, the economic value added of Wenzhou's private economy was 174 billion 114 million yuan, accounting for 80.7% of the city's GDP, 30 percentage points higher than the national average.

After the outbreak of the international financial crisis in 2008, the private economy in Wenzhou suffered heavy losses.

Taking the data of 1~7 months in 2011 as an example, the losses of 326 loss making enterprises above Designated Size in Wenzhou amounted to 640 million yuan, an increase of 220 million yuan over the same period in 2010, an increase of 52.2% over the same period last year, a 27.1 percentage point increase over the beginning of 2010.

The dilemma of Wenzhou's regional economy is seen by Yang Zhiqing, executive director of the Zhejiang Business Research Council. The essence of the plateau is the result of low capacity overcapacity, which is also a fundamental reason for Wenzhou's SMEs to encounter difficulties and crises.

"There are too many enterprises that can make socks, but the sales volume in the world is only that small."

Wenzhou's industry was developed rapidly after China's shortage of economic era and China's accession to the WTO.

With the development of economy, the competitive advantages of these low-end industries in Wenzhou are gradually losing.

Bao Yujun, a research fellow of the State Council Counselor's office and a consultant from the China private (private) Economic Research Association, said that Wenzhou's industry should be pformed and upgraded after 2008, but the vast majority of enterprises did not have timely merger and reorganization because of the lack of integrated resources.

At the same time, SMEs in Wenzhou have system defects, extensive management, quick success and instant benefits, blind expansion, and so on. They lack innovation in management, technology and operation, and the risk prevention mechanism is seriously damaged.

The objective result of the pformation and upgrading of enterprises is the upgrading of value-added products and the enhancement of industrial competitiveness.

But there are two conditions for the premise of the two. One is the improvement of the owner's quality and ability, the other is the pformation of the local government's function.

Yang Zhiqing believes that the current ability, culture and values of Wenzhou entrepreneurs can no longer adapt to the new competitive environment. Entrepreneurs' behavior has been pformed, and they are keen on speculative profits and have lost interest in industry.

The function of local government is weakening and weakening, and there is a lack of guidance for enterprises.

"Govern by doing nothing" is no longer suitable for the current economic situation. Zhou Guanxin, director of the Zhejiang Provincial Federation of industry and Commerce Research Office, said that Zhejiang's enterprises have lagged behind Jiangsu in terms of industrial pformation.

"A considerable part of the low end manufacturing industry should be euthanasia in industrial pformation and upgrading."

Yang Zhiqing said that there are two ways to eliminate, one is the horizontal pfer of space, the other is the vertical upgrading.

Bao Yujun also believes that the private lending crisis in Wenzhou is a must for the development of China's private economy. After the labor pains, it is a natural choice for the market to reshuffle the cards.

A local official also said that the biggest problem in Wenzhou is the industrial problem. The industrial economic mode has not been enough to support Wenzhou's economic development. The introduction of the new industrial structure is an inevitable trend. Wenzhou should take this private lending crisis to complete the upgrading and upgrading of the industry.

Financial innovation needs urgent solution

Yang Zhiqing told reporters that the private lending crisis in Wenzhou is due to the fact that Wenzhou entrepreneurs lose interest in industry and are keen to make quick profits and speculative profits. This is the result of capitalization of capital and hot money of capital.

From the perspective of the external plateau, the 36 old and new sectors that encourage private sector economy are still hard to enter, especially in infrastructure and finance.

"A large number of private funds can not find a normal way out, instead of capital speculation, they want money to generate money."

Bao Yujun said that if private capital is allowed to set up banks, a large number of hot money may be regulated.

In November 2011, the Wenzhou municipal government established the policy of financial city building, announcing the full implementation of the "1+8" local financial reform and innovation strategy, aiming to make the private capital lending rationalization and sunshine.

One of the plans is to open up 120 microfinance companies in three years with open tender, which is expected to absorb 80 billion yuan of private funds.

And stipulates a certain proportion to enterprises outside Wenzhou to encourage Wen Shang to return to Wenzhou to start an undertaking.

Zhou Dewen, chairman of Wenzhou small and medium enterprises promotion (micro-blog), believes that to speed up financial reform, the government should open up small bank registration, guide underground funds to the ground, make private lending public and legalized, and establish a standardized private lending market.

It is reported that the comprehensive financial reform pilot area in Wenzhou has been reported, and a series of financial reform programs are being implemented. At present, the financial business district of Wenzhou riverside road has begun construction.

At the same time, in order to understand and grasp the trend of private capital in a timely manner and prevent and resolve private financial risks, the Wenzhou municipal government has launched a private lending registration and service center.

Fang Peilin believes that if the private lending registration center is only for registration, it is meaningless. Guarantee Corporation and insurance companies should be introduced to encourage private financing and restore private lending.

In addition to the establishment of financial institutions, the Wenzhou municipal government has actively declared the establishment of local financial organizations such as overseas Chinese funded private banks, Wenzhou trust investment companies, financial leasing companies and Consumer Finance Companies.

Li Ding, director of the three branches of Wenzhou banking regulatory bureau, believes that the establishment of financial institutions and local financial supervision system must be restructured. The current long regulatory and regulatory system is not enough to cope with potential financial risks.

"The Wenzhou issue is not a shortage of financial institutions, but a structural problem, including the structure of bank credit, Wenzhou's economic structure and industrial structure."

The above local financial regulatory agency official said.

However, Yang Zhiqing believes that there should be a coordination process for the development of financial reform and industry. Finance is the mother of the industry. Wenzhou's economy relies mainly on grass-roots non-governmental finance. Wenzhou's disaster hit areas are also in the private sector of finance. Objectively, financial reform is effective. Therefore, reform should be guided by finance.

The Secretary General of the China microfinance alliance, Bai Cheng Yu, said that small loan companies can only get funds from wholesale agencies to increase leverage, which is constrained by the marketization of interest rates in the country. Only when real interest rates are marketed, can such large banks provide wholesale funds for small loan companies, and in this case, banks must be positive.