Where Is The Road Of Wen And Qi When The Crisis Comes?

Recently, the financial crisis triggered by the subprime mortgage crisis in the United States has swept the world. What kind of crisis is it going to be? Where will it go?

What kind of impact will it have on China and even Wenzhou's economy?

What opportunities and challenges will it bring to private enterprises in Wenzhou?

In October 24th, government officials, experts, scholars and business circles in Wenzhou launched a heated debate.

Zhang Zhenyu: a strange phenomenon came out of the financial crisis - the emerging countries such as the US, Europe, China and so on.

Tao Baojian: we are hard to find others. It is difficult for us to find opportunities for development.

Pan Pingping: the financial crisis has also given us a very good chance to introduce Wenzhou's private enterprises into Europe and America and acquire foreign brands.

Zhou Jiaru: our enterprises must learn the viability of mice and preserve themselves in the financial crisis.

Lin Guang: today's "grass" has become a "big tree" in private enterprises. The method is to adopt the grafting form with eugenics optimization.

Ma Jinlong: Wenzhou's private enterprises' going out is not the spark of wildfire, but the grass of the wild grass.

In October 24th, the Wenzhou Municipal Finance Office jointly sponsored a seminar on "the Wall Street financial turmoil and the internationalization of private enterprises in Wenzhou". Officials, experts and scholars, private enterprises, commercial banks, trade associations, and the overseas Chinese who arrived in Wenzhou just a day ago gathered together to discuss the opportunity of the financial crisis.

At the seminar, participants agreed that the outbreak of the financial crisis in the United States has its underlying causes. China is facing enormous challenges and opportunities in the face of crisis and the resolution of the crisis.

The market value has shrunk by half, and export growth has slowed down. As the first private enterprise in Wenzhou listed in the US, Ruili group has the most direct understanding of this financial crisis.

Tao Baojian, vice president of Rayleigh group, said that the impact on Rayleigh is very obvious, that is, the price of the first stock has dropped, and the assets of the company have shrunk most obviously.

At the end of 2006, the issuance price of Rayleigh shares was $7.25 per share, but in the last 52 weeks, the price of Rayleigh fell from $9.3 to $1.58, down 70.6%, and the company's market value shrank by 70%.

"Our company originally planned to refinance this year, but this financial crisis has severely damaged the confidence of shareholders, and our plan has to be shelved for a while."

Tao Baojian said.

In the wake of the financial crisis, the auto industry took the lead.

Tao Baojian frankly said that because of the atrophy of the US auto sales market, the growth of Rayleigh's exports slowed down obviously.

Many US customers have problems with capital chain, and the risk of loans has increased significantly.

Another company in the United States, which has production plants and sales companies, has such a direct sense.

Zhou Jiaru, chairman of the group, said that the company has a major client in Brazil, because of the impact of the US financial turmoil, Brazil's currency has depreciated by 35%. It requires Guan Sheng to suspend the shipment of the remaining $2 million of the remaining goods which have not yet been shipped in the order, and then deliver the goods after the appreciation of Brazil currency.

"When I first got the news, it was like an ant on a hot pot."

Zhou Jiaru said.

But crown Sheng learned the contingency, found an insurance company underwriting, agreed to deliver by Guan Sheng first, the goods can not get back to the insurance company to compensate 90%.

Then, the company negotiated with the customer, first shipped, and then the Brazil currency appreciation of 20% and then to the payment.

"From two yuan per ton to 6800 yuan per month, steel has been sliding down to 3800 yuan per ton, and the goods will automatically depreciate 20% without delivery."

Zhou Jia Ju said so.

Zheng Chunlei, deputy director of the Municipal Administration of foreign exchange, also provided a set of data: from 1 to September, the city's foreign exchange inflow was 14 billion 550 million US dollars, up 23% over the same period last year, and the foreign exchange outflow was US $2 billion 360 million, an increase of 28% over the same period last year.

This shows that net inflow of foreign exchange has slowed down.

"In recent years, the internationalization of our domestic enterprises has come to spring. Many successful cases of" going out "have sprung up, but in fact, under the impact of this financial crisis, investment institutions that only go to the international financial market are basically at a loss.

Zheng Chunlei said.

Lin Guang, who has just returned from the US and vice president of the Chinese Chamber of Commerce, has brought the latest information.

"My view is a little different from what you are talking about now. What you are stressing now is the whole international economic downturn caused by the subprime mortgage crisis of the financial turmoil in Wall Street.

According to my observation, I think the relationship between foreign trade and financial turmoil is not very big.

Lin Guang said that the biggest reason was the sharp rise in oil prices, which led to a slowdown in domestic consumption and a slowdown in consumption. Then foreign trade orders naturally decreased.

There is also the fact that the general American people are buying stocks. The stock is losing money and the income is reduced. In this case, the consumption has certainly slowed down.

"I think there is a lot of doubt that many Wenzhou enterprises broke down when the capital chain broke up.

As a matter of fact, banks can not afford to pay more money to these enterprises.

In the process of slowing consumer demand in the US, many Chinese enterprises relying on exports will surely face a process of shuffling.

Lin Guang said.

To speed up the internationalization of private enterprises and to recruit talents in overseas markets, "I have a feeling that the overall financial turmoil has many unfavorable factors.

Under unfavorable conditions, the private enterprises in Wenzhou may be less favourable.

This subprime mortgage crisis has caused a great loss to China, but it is not from which private enterprise to pay the bill.

Although the financial storm of Wall Street should be sweeping the globe, the internationalization of our private enterprises in Wenzhou is still a major trend, which can not be changed. "

Professor Ma Jinlong, President of Wenzhou Economic Association, said.

Wu Shaoning, vice president of Wenzhou branch of Bank of China, also holds the view that "advantages outweigh disadvantages".

"Our group is producing motor drive locks, but orders have not decreased.

Because of the impact of the US economic downturn, new cars can not be sold and there are more old cars.

Our sales of auto parts sales increased by 15% from 1 to September this year.

Zhou Jiaru believes that the financial crisis is bringing opportunities to internationalized Wenzhou enterprises.

At the seminar, Zhou Jiaru, who spoke, asked, "which one do you like, tiger or mouse?"

After a slight pause, and when everyone had their own answers, Zhou Jiaru continued: "you must like tigers.

However, the tiger is endangered because it does not adapt to the environment, but the mice can not destroy them.

The US financial turmoil is actually challenging the viability of every enterprise. Wenzhou enterprises must learn the viability of mice and preserve themselves in the financial crisis.

The crisis also provided opportunities for Wenzhou enterprises to recruit overseas talents in the process of internationalization.

The United States is now laying off a lot of jobs, and many talented people have lost their jobs.

In the past two months, Guan Sheng has recruited 4 outstanding salesmen from the United States, and these marketers are not very demanding and work hard.

The US General Company shut down several factories in Mexico, and offered to negotiate with Rayleigh, hoping to pfer these production parts to Rayleigh.

Tao Baojian said that only globalization can develop itself.

It is difficult for us, and it is difficult for others. At this time we must stick to it and go out boldly. We should seize the opportunity that the financial turmoil has caused many enterprises to make unsustainable capital, acquire acquisitions, expand the market, undertake the opportunity of the world manufacturing industry to pfer to China, and actively cooperate with multinational corporations to strive for new products and new orders.

It is impossible for us to innovate the financing channels, put the market vision far away and seize the opportunities in the crisis.

Opportunity favors only those who are prepared.

What preparations should Wenzhou private enterprises take to "go out"?

Zhang Zhenyu, director of the Finance Office of Wenzhou, gave two suggestions. The first suggestion is that the management of private enterprises should be in line with international standards and break the "bottleneck" brought by family businesses.

The second proposal is financing.

Zhang Zhenyu said: "in fact, there are four financing ways for enterprises, but many enterprises only take the way of bank loans or private lending.

There are three ways to go: equity financing, private equity and bond market financing.

Now the bond market financing is booming, but the bond market in Wenzhou is developing very slowly. Wenzhou's small and medium-sized enterprises have no conditions to issue bonds separately.

Now there is a bundle of Jinhua, Hangzhou and other places have made some attempts.

There are also some short-term financing bills issued by banks, but we must ask that our enterprises' property rights must be clear, and approval takes some time.

Wenzhou enterprises should keep their market vision far away.

I joined the China ASEAN Expo in Nanning the first two days. In 2010, China ASEAN will realize a free trade zone. This is also a very good opportunity. At the same time, we need to expand some other markets in Africa and South America. "

Pan Pingping, deputy director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, said that the financial crisis has also prompted our private enterprises to carry out economic and trade cooperation and competition in a wider range of fields, including commodity markets, resource development, overseas R & D institutions and talents.

Zhang Tianchang, the director of the municipal development and Reform Commission, made a suggestion to the venture, "you can't invest 1 hundred million of the money in 8 hundred million of the industrial park, so that the crisis can't keep up with the subsequent funds."

He believed that private enterprises should not only engage in industry, but also gradually extend to the two ends of the industrial chain, pform to producer services, and gradually pform and upgrade their industries to face the crisis.