Wenzhou Enterprises Extremely Difficult To Collapse And Reappear

" Wenzhou It is an indisputable fact that enterprises are facing extreme difficulties. They will know once in the latest state-level coastal industrial area in Wenzhou.

"In the industrial area, it is also a bankrupt enterprise with billions of assets. It is taken over by banks."

"A big boss with billions of assets does not have millions of dollars in liquidity. It is normal now in Wenzhou. Once the bank is weaned, it will go bankrupt overnight. "

...

Micro-blog is constantly breaking up more about the outcome of Wenzhou's manufacturing enterprises, and Wenzhou's manufacturing industry seems to be in danger.

Recently, Wenzhou manufacturing industry 60% spread rumors of bankruptcy. Wenzhou, a city that relies on manufacturing export industry and unconventional underground finance, is overshadowed by the state's macroeconomic regulation and control policy.

　　 Corporate collapse

In May of this year, Taizhou's largest export ship enterprise, Jingang shipbuilding industry, filed for bankruptcy application. Before, Ningbo blue sky shipbuilding group and Ningbo Heng Fu Shipping Co., Ltd., which had annual shipbuilding capacity of about 1 million tons, went bankrupt. In September 5th, the first London listing company, 5.07,0.03,0.60% group limited, also issued a notice of seeking capital restructuring or resale of assets.

On the evening of October 6th, Lin Zhijian, Sina micro-blog, chairman of Shanghai Victoria investment and Development Co., Ltd., said: "at the end of 2011, there were serious financial risks in ten cities and towns in Ruian, Wenzhou. Almost all of them were knocked down by rumors -- bankruptcy and bankruptcy, and today they received second batch of short list of risk enterprises. Once this is the case, Ruian's economy is really badly hurt, and it will be difficult to recover ten years from now.

From the netizen "Tang Schultz", a micro-blog shoe factory bankrupt micro-blog, to the sensationalist "about 60% of Wenzhou's manufacturing industry will go bankrupt" said, affected by the continuous weakening of the national economy, the development of various industries is not ideal, the traditional manufacturing industry is in a difficult position and can not extricate itself.

Ma Yao, a macroeconomic researcher at CIC, told reporters that as an important traditional manufacturing base in China, the collapse of SMEs in Wenzhou is not groundless. This phenomenon is in line with the industry's general expectations.

Official figures confirm the current economic situation in Wenzhou. In the first half of the year, Wenzhou's total GDP fell by the top three in Zhejiang, and the growth rate was at the end of the 11 cities in the province.

Deng Yanfei, a researcher at the modern financial research center of Shanghai Jiao Tong University, told reporters that from the local statistical data of Wenzhou, the total export volume of Wenzhou in the past 6 months, 7 months and 8 months was down, and the decline in 7 and August was over 8.5%. The data in 9 and October have not yet been seen, but according to the trend, it may not be very optimistic. Wenzhou is an export-oriented economic structure, and external markets have a serious constraint on the local economy. Not long ago, the communiqu issued by IMF said that the global economic growth slowed down. This macro background coincided with the actual situation in Wenzhou.

　　 "Uncoordinated" with macroeconomic

In mid October, Wen Jiabao, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, held three seminars in Zhongnanhai, including heads of industry associations, heads of some local departments and enterprises, and experts and scholars, to listen to your views and suggestions on the current economic situation.

According to the situation reflected by the participants at the symposium, the three quarter, especially since September, has gradually picked up exports, steadily increased consumption, and the price inflation has dropped markedly. The employment situation is good, and the structural adjustment has taken a new step.

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In September, the PMI of manufacturing industry was 49.8%, up 0.6 percentage points from last month, the first rise since May. More importantly, the new orders index rose markedly, reaching 49.8%, up 1.1 percentage points from last month, the highest level since June. Stock Showing a continuous downward trend.

From the information conveyed by various industries, enterprises, local departments and other related aspects, we can see that the current economy has experienced positive changes and economic growth has stabilized.

The slump of Wenzhou's manufacturing industry is contrasted with the overall macroeconomic performance. Ma Yao told reporters that whether the macro-economy is good or not is determined by a lot of economic data, and is not different from the indicators of micro economic development. The "incompatibility" between the two is normal. At present, China's economy has not yet seen signs of stabilization and recovery. All industries are still in trouble and unable to extricate themselves. The economic recovery is not obvious enough, and the difficulty of maintaining stability remains.

Deng Yanfei believes that from the loan situation of local financial institutions in Wenzhou, short-term loans grew by more than 14% year-on-year, while the long and medium term loans fell sharply. Because it is difficult to get the total amount of social financing of local enterprises in Wenzhou from statistics, and thus can not completely judge the serious recession of Wenzhou's real economy, but other financing methods in Wenzhou have not changed much. Therefore, we can basically regard the total amount of local financing as a fixed number. Under this assumption, we can reflect the pessimistic fact of the local real economy to a certain extent.

Of course, the biggest tragedy may not have been found by the local government, but it is regarded as a good thing. According to the local official media in Wenzhou, the tax revenue of Wenzhou's financial industry was 2 billion 85 million yuan from 1 to July this year, an increase of 67% over the same period last year. Scholar Pan Yingli pointed out that it is wrong to include the high income of the financial industry in the growth of GDP. The larger the income of the financial industry means that it is depriving the interests of the real economy in a more pure way, rather than better serving the real economy.

　　 Magic weapon for enterprises to "survive"

What is the right way to rescue the dying enterprises? This is a practical problem that plagues many manufacturing enterprises in Wenzhou.

Ma Yao believes that "low added value + price war" is an important "magic weapon" for China's traditional manufacturing industry. Most enterprises only rely on low labor costs to earn meager profits. Local governments should actively introduce measures to give preferential treatment from tax, land and credit, encourage traditional manufacturing enterprises to get involved in more fields of industrial chain, increase the added value of products, and get out of difficulties as soon as possible.

Deng Yanfei also believes that high added value and low price will always be the magic weapon for enterprises to remain invincible. "High value-added and low prices seem to be contradictory. In fact, they can be integrated with each other. The key is how to use and grasp creatively." Deng Yanfei told reporters that enterprises should have a correct understanding of "high added value". We should not simply think that the "high added value" is the function of adding more products. A pair of shoes, a lighter and a razor will not add to the added value of these products.

Deng Yanfei said that Wenzhou relies on the financial sector to support economic growth, which in itself is wrong. The real economy is inseparable from the adjustment of financial intermediaries to funds, but finance must revolve around the real economy rather than win the battle.