Ningbo'S Funding Gap Caused 40% Small Businesses To Suspend Business

In 2008, China's foreign trade economy was in a stormy year.

The financial turmoil has been raging in the world, and it is the first time that Zhejiang businessmen have been most sensitive to the international economy.

In Zhejiang's foreign trade economy, Ningbo, a planned city, is very important.

A few years ago, the State Council positioned Ningbo as the "southern wing economic center of the Yangtze River Delta". Now, in the Yangtze River Delta region, where Shanghai is the leader, Ningbo and Hangzhou and Nanjing are the regional central cities, which have already pcended the positioning of the "economic center of the Southern wing of the Yangtze River Delta".

Ningbo, known as "China's Stationery capital", "China's mould capital" and "China's plastic machinery capital", has entered GDP's "300 billion yuan club" in 2007.

As one of the ten largest foreign trade cities in the country, there are more than 8000 import and export enterprises in Ningbo, with an export dependency of 84%.

According to the report issued by the General Administration of customs, the competitiveness of Ningbo's comprehensive foreign trade ranks third in the whole country. With its clothing, electronics, machinery, light industry, chemistry and many other industrial clusters and about thirty listed companies, it shows the integrity of the economic structure and the strong economic strength.

According to the statistics of Zhejiang, the export growth rate of Zhejiang in the first three quarters of the year has dropped markedly, and the utilization of foreign capital has been weak. The export growth of various categories of commodities has declined in varying degrees. Many enterprises have contracted the export scale or even suspended exports. A large number of enterprises are pessimistic about the export prospects.

The world-famous "made in Ningbo" is also facing severe challenges.

Our reporter interviewed senior officials from various fields such as government officials, financial enterprises and export oriented companies through field interviews, hoping to find out the most typical samples in the areas where the financial turmoil has hit the forefront of China's economy.

When the reporter walked into the office of Rinke Textile Co., Ltd., the rainbow road south of Ningbo, the 11 floor office, Shen Gongcan, the general manager of the company, was busy working with an employee, playing with some fashionable knitted dress on his big desk.

Under the leadership of Shen Gong Chan, the garment company specializing in foreign trade has become a well-known supplier with annual turnover of more than 15 million dollars and import business circle.

"The financial crisis is coming, and the delivery time required by foreigners is much shorter. We have to rush out the shipment quickly."

Shen smiled at the reporter.

He has a typical shrewd businessman appearance, but he is very active.

"The financial crisis and the adjustment have made things all the same."

Shen analyzed the current situation of foreign trade to reporters. "Orders sent by foreigners are now going to be shipped in two or three months. We are increasingly demanding that we react quickly." small batch, multi style, fast delivery "has become the basic line.

Because of a series of reasons, such as exchange rate, raw materials and labor cost, the low-end textile industry is pferring to Southeast Asia, such as Bangladesh and India, where the wages of workers can be around one dollar a day, so this shift is an inevitable trend, just like when the textile industry moved to China.

"It is not true that a large number of textile enterprises in Zhejiang are bankrupt, and the spinning and weaving industry is still a good industry," he said.

For these diligent and smart Zhejiang businessmen, Shen Gong can never wait for death. Nowadays, under the financial crisis, they can still "change the law to save".

However, as the first wave of economic crisis superimposed on the cold wave of domestic economic adjustment, Zhejiang is in fact facing a severe test.

40% of small businesses have stopped business because of the shortage of funds.

Jin Rong, a vice president of the Ningbo branch of a large bank in China, admitted in an interview with the Shanghai Securities Daily reporter: "by the end of the year, we must control the pace of development. Banks have their own assessment indicators. Now we are doing too much, and we will have a lot of pressure on ourselves next year.

Now is the way of thinking to decide the way out, not to say that rushing ahead can solve the problem, and now we may go all the way forward.

"Now the capital chain is tight."

Chen, a founding partner of a large law firm in Ningbo, who has many years of experience in financial practice, said: "many large enterprises have a high debt ratio. Although assets scale 1 billion to 2 billion, it is still possible to go bankrupt.

The reason for the outbreak of the crisis comes from itself, such as the investment real estate has not been opened or sold.

In addition, big trading partners, if they have a problem, are also a fatal blow to them.

Once they fall, banks will have two billion debts.

The domestic bank loan period is relatively short. According to unwritten rules, enterprises need to collect principal and interest back to the bank after maturity, so that they can get loans again in a few days.

In Chen FA's view, the reason why Zhejiang's private lending flourishing is that enterprises need several days of capital pition.

But nowadays, it is very difficult for enterprises to make money in pition for several days. Once a bank collectors debts, it will become a fuse for enterprises to go bankrupt.

The tension of capital chain affects the whole economy, which will inevitably lead to bankruptcy of many enterprises that are not strong enough to resist risks.

According to the Statistics Bureau of Ningbo, in the first three quarters of the year, the main business revenue per 100 yuan was 11.3 yuan, which was 13.1% lower than that of the same period last year, and the profit per 100 yuan business realized 5.64 yuan, a decrease of 19%.

Small businesses have further narrowed their profit margins.

During the adjustment, small businesses in some industries were hit harder, and they shut down or closed down. Some even shut down.

According to the Statistics Bureau of Ningbo, 3095 of the industrial enterprises below the scale of the three quarter were closed or closed down, 4262 enterprises were closed, and 4566 new construction enterprises were launched at the end of the three quarter.

According to the reporter's estimate, the top two accounts for about 40% of the enterprises below the scale.

A Ningbo court system leader told reporters that this year's sharp rise in disputes over bankruptcies caused the court system to be busy.

In the view of banking industry, it is a normal phenomenon that the capital chain tension of small and medium-sized enterprises leads to the final closure.

Yin Hong, a director of the risk management department of Ningbo branch of a large bank, said that in the past, Ningbo's joint-stock bank funds were outflowing. After this adjustment, funds were being recycled. At this time, banks were more concerned about risks. When they invested in the local market, they naturally tended to big enterprises, and the impact on SMEs was fatal.

"All banks are talking about supporting the development of small and medium-sized enterprises, and the state has also issued relevant encouraging policies. However, from the perspective of rational economic people, banks certainly support strong enterprises, and the tightening of money is definitely the medium and small enterprises, so their first problem is normal."

Jin Rong said, "for some industry chain concentration of regional industry, all banks may be similar to the risk judgment, tightening is tightening."

Yin Hong believes that the current market funding gap is natural.

"In the second half of last year, the price of raw materials increased a lot, and the occupancy of funds was high. Although the bank kept the loan level last year, the market gap was obvious.

The capital market occupies a relatively high level, and enterprises need more funds to maintain the same sales volume.

When the price of products plunged, the enterprises returned to their capital and got stuck. The market confidence index plummeted and the bank loans became more prudent. In this way, a vicious circle was formed: the business efficiency decreased, the bank credit was tight, and the enterprise funds became more intense. Finally, the enterprise capital chain was broken.

The conglomerate also faces the test of survival. "Now risks may spread to big enterprises."

Chen FA said, "large enterprises that may die, first of all, are high indebtedness, excessive investment expansion, and lots of industrial land lots. On the one hand, they have just built factories and have not produced benefits. On the other hand, capital has invested heavily in real estate. Now the real estate is out of order, and the main business also has problems in operation and profits.

The original two are interactive, walking on two legs, that is, the money earned from real estate can subsidize the industry, and the money that industry can make can do real estate, and now the two legs are no good.

But he also thinks that it is dangerous for these enterprises to fall out.

"When the capital chain is tight, the big enterprises have natural advantages. The accounts can be owed to the suppliers. If they die, many suppliers will be finished, so a large number of workers will lose their jobs and cause social problems.

I advocate big enterprises have problems and best to save, because if the industry leader dies, the industry will not rise for 10 years.

There is no reason why Chen's law should be adopted.

Judging from Zhejiang, the recent outbreak of security and security giant Nan Wang Group bankruptcy reorganization event, Shaoxing's annual sales of 2 billion large textile enterprises Jiang long holdings and domestic PTA giant Hualian three Xin on the verge of bankruptcy, all because of involvement in real estate or excessive expansion led to capital chain rupture.

According to the Statistics Bureau of Ningbo, in the first half of the year, the liabilities of 40 large enterprise groups in Ningbo increased by more than that of assets, and the business risk of enterprises increased.

By the end of June, the total liabilities of Ningbo enterprises (Group) reached 125 billion 730 million yuan, an increase of 36% over the same period last year, which is 3.4 percentage points higher than that of the same period (Group) assets. The assets and liabilities ratio of the main manufacturing enterprises (Group) is 63.8%, up 3.7 percentage points over the same period last year.

Private lending and bank loans have become "noose". Private lending, which was originally active in Jiangsu and Zhejiang, is now far less active than in previous years.

Jin Rong believes that many people who did private lending were not born in the financial industry. They often adopted a series of lending models. They might not know where their money eventually went, and a large number of lending companies were investing in them.

Theoretically, the demand for private lending market is very large. In fact, many people have already withdrawn. The higher the economic risk, the less the industry will dare to do.

"In Ningbo, small businesses are reluctant to lend to banks because they are more convenient to borrow from other businesses.

In the good macroeconomic situation, despite the high interest rate, it solved the financing problem of private enterprises.

Now the whole external environment is very poor, and the cost of financing has gone up. For the enterprise, it is to kill the poison and quench thirst, but not to take it. Today, it will die, take it, only live for a month, and become the enterprise's life line.

Yin Hong said.

They believe that the probability of events involving private lending is much larger than that of many large and medium enterprises that fail.

Yin Hong said, "according to the five level classification of bank assets, it is now concerned about the increase of class assets. As time goes on, by the end of the year or the first quarter of next year, many banks will pay a lot of attention to loans that will become bad loans.

In October, the effect of the financial crisis showed that the asset classification should be adjusted according to the overdue 90 days. The peak period should be in the first quarter of next year.

However, another person in the banking industry has pointed out with deep concern that "for the classification problem, it depends on how the bank account is done."

The Ningbo banking regulatory bureau announced the operation of the banking assets in the city showed that the negative effects have been partially revealed.

At the end of 9, the non-performing loans of Ningbo joint stock commercial banks increased rapidly, the balance was 1 billion 920 million yuan, an increase of 627 million yuan compared with the beginning of the year, and the non-performing loan ratio was 1%, an increase of 0.2 percentage points over the beginning of the year.

The balance of non-performing loans of large banks was 3 billion 72 million yuan, an increase of 204 million yuan compared with the beginning of the year.

This is a personal experience in busy law practice.

"During this time, there are many cases and the main target is the case of the bank.

Obviously, last year was a large number of private lending disputes, now is a large number of bank loans disputes, the danger has spread to the banking system.

It is worth noting that banks may also become the "culprit" of enterprises to accelerate bankruptcy, which can be seen in several reorganized enterprises in Zhejiang.

In Jin Rong's view, interbank distrust and information exchange are important reasons.

"Almost all enterprises with problems are related to this. Banks are very tight at it. When they see the situation is wrong, hurry up and go first, and other banks will catch up."

Jin Rong said, "in fact, if we go through the liquidation, it will not be a good thing for everyone, and it will cause a fatal blow to the enterprise and cause a serious chain reaction."

It is necessary to form a coordination mechanism. Each head office must have a coordinator to deal with the matter, information exchange and coordination. Of course, it is necessary to distinguish between enterprise production and operation, whether production is normal, whether assets are benign or not, only because of the problem of capital.

If it is, congestion is the case. "

Extroverted industrial clusters are facing severe challenges. From the perspective of the six districts, three cities and two counties in Ningbo, they are well known for their multiple industrial clusters.

Specifically, there are five pillar industrial clusters, such as textile, clothing, machinery, electronics, light industry, chemistry, and many of them are famous in the whole country and even in the world.

However, it is an indisputable fact that the entire export-oriented industrial cluster is facing severe challenges from the domestic and international situation.

The lighters giant Xinhai shares accounted for 94.75% of the sales revenue in the first half of the year, of which 40% were exported to Europe.

Sun Ningwei, deputy general manager of the company, told the Shanghai Securities Daily that "although lighter demand for lighter products is less flexible, the export business has not been affected too much, but the customer's orders are more prudent. They used to be orders for half a year or a year.