Chemical Fiber Enterprises Dismantling Mutual Guarantee Chain

Recently, media reports reported that Zhejiang Xiaoshan enterprises were in a dilemma of mutual insurance. It is understood that a number of chemical fiber textile enterprises involved. Xiaoshan's private economy is well-developed. Last year, the total industrial output value reached 580 billion yuan, and chemical fiber is an important industry in the region. The encounter of chemical fiber and textile enterprises will inevitably become a worry for the local government. Banks are also worried about how to recover loans, and some have already made loans or loans to enterprises.

The way of mutual insurance and joint guarantee has facilitated the financing of enterprises in a specific period, and guaranteed the volume of banks' business. However, in this predicament, the financing channels are too single, the credit system is not perfect, and the market shock is aggravated. How to solve the dilemma of mutual insurance and joint insurance is testing the wisdom of the government, banks and enterprises: the operation of enterprises is a problem, the competition should be eliminated by the market, or is it well run by itself but dragged down by mutual insurance? When the government respects the market, how can we do well in the guidance, and where is the boundary between pre action and regulation? How can we not guarantee a child insurance for the enterprises?

　　 Mutual guarantee

Xiaoshan's local and surrounding areas will experience bankruptcy problems every year due to mutual insurance, which has already been disposed of and is not as serious as some media reports. Professor Yu Ze, associate professor of Economics School of Renmin University of China, said that mutual financing and joint guarantee is a financing method in China.

People in the Xiaoshan district government told the media that the local economy is basically stable, but the risk still exists. It requires the joint efforts of the three sides of the government, banks and enterprises. A number of local enterprises told reporters that the local and surrounding areas will have corporate bankruptcy problems caused by mutual insurance joint insurance every year. They already have the experience of disposal, and the overall situation is not as serious as some media reports, but the situation in these two years is somewhat different. In particular, compared with 2009, under the current low market situation, the state did not introduce corresponding support policies. Moreover, this downturn is much longer and no sign of improvement has yet been seen.

In 2009, in response to the impact of the international financial crisis, the state promulgated the "textile industry readjustment and revitalization plan" to ensure stable development of the textile industry. The local government has also issued preferential policies to speed up structural adjustment and promote the upgrading of chemical fiber and textile industry. Local banks have also relaxed the credit business of chemical fiber and textile industry accordingly. Under the guidance of government policy guidance and bank credit, enterprises believe that the so-called development opportunities have been ushered in.

"Financing was easy at that time. Generally, just looking for a guarantee company. And banks are actively asking whether they need to borrow. " A company involved in mutual insurance said.

Mutual loan is the main means of financing for local enterprises, especially private enterprises. Mutual guarantee loans are usually undertaken equally by enterprises. Unsecured loans refer to 3 or more than 3 small and medium-sized enterprises, which voluntarily constitute a guarantee consortium. After a certain enterprise applies for a loan to the bank, all members of the joint guarantee body shall bear the joint and several liabilities for repayment. Professor Yu Ze, associate professor of economics at Renmin University of China, said mutual financing and joint guarantee is a way of financing in China. Because of the lack of collateral in individual enterprises, this way of financing can collaterate all collateral and get loans.

However, when the capacity expansion is fast and the market is low, the country has no big stimulus and support policies for the chemical fiber and textile industry. Moreover, this situation will continue. A local listed company reported in its recent report that its performance in 2014 was expected to be 1~6. Polyester polyester industry is still in the adjustment cycle, and the supply and demand relationship has not improved significantly.

　　 Inextricably bogged down in

It is difficult for enterprises to accept that banks are lending loans to enterprises in order to prevent risks. Because the mutual insurance joint insurance company is often an industry or an industrial chain enterprise. In the short term, it is highly contagious. As long as one enterprise can not get loans or the capital chain is broken, many UNPROFOR insurance companies will be affected.

Local enterprises said that the overall downturn and poor management caused enterprises to go bankrupt, and banks would freeze accounts of guarantee companies first, and then liquidate enterprise assets. Generally, the problem enterprises are insolvent, and the accounts of the secured enterprises are frozen, and the debts owed by the problem enterprises need to be repaid. Therefore, the collapse of some enterprises is not caused by poor management.

Xia Yong, Secretary of the board of directors of Hangzhou Hongfeng Textile Group Co., Ltd., said that no matter what the business condition of the enterprise is, banks will freeze the accounts of the secured enterprises, so that the normal running enterprises are injured. Enterprises need to use money every day, and freezing funds often drag down guarantee businesses.

What is more difficult for enterprises to accept is that banks are lending loans to enterprises in order to prevent risks. Because the mutual insurance joint insurance company is often an industry or an industrial chain enterprise. In the short term, it is highly contagious. As long as one enterprise can not get loans or the capital chain is broken, many UNPROFOR insurance companies will be affected.

Local enterprises told reporters that at present, local chemical fiber and chemical fiber weaving two industries have different degrees of difficulty, weaving industry is more serious than chemical fiber industry. There are two main reasons: first, weaving enterprises have less investment, lower thresholds, weaker competitiveness and poor risk tolerance than chemical fiber enterprises. Two, in the last round of economic stimulation, weaving capacity expansion is relatively faster and more pressure.

Reporters learned that, in order to guard against the risk of mutual insurance, in the early February, the region promulgated the relevant policies on solving the problems of venture capital chain (Trial Implementation) (hereinafter referred to as "opinions") and other related policies, regulating the three party behavior standards of the government, enterprises and banks, especially requiring local banks not to borrow money arbitrarily. At the end of March, when a local reporter was investigating, a local official said he was actively seeking bank support. The industry said that without the support of national policies, the local government has no more means to regulate, and it is not easy to build a platform for consultation between banks and enterprises.

　　 Already foreseen

The research team of a local banking department has made relevant research on the loan situation in 2009. Special attention has been paid to the loan investment in chemical fiber textile business. At present, banks are adhering to the principle of "treating differently, supporting superior and inferior" for the implementation of chemical fiber textile business, and do not deliberately tighten lending to all chemical fiber and textile enterprises.

Companies involved in the mutual insurance crisis say that the main reason for this problem is that banks rush to lend money when they see the risk of a loan. A bank official said there was no way for them to do so. The operation of the market provided risks and benefits, and the banks were just following the rules. Moreover, as a branch, there is no right to fill the loopholes, so it is most important to retain their positions.

In fact, the problem of fund breaking caused by mutual insurance appears every year in Xiaoshan. And this crisis has already been foreseen in the industry. The research team of a local banking department has made relevant research on the loan situation in 2009. Special attention has been paid to the loan investment in chemical fiber textile business.

The survey report shows that the degree of marketization in Xiaoshan district is relatively high. Some enterprises see profitable projects on the ground and compete with each other for customers and compete to reduce prices. Take chemical fiber products as an example, in the past few years, polyester fiber projects have been mainly concentrated in several key enterprises, but there has also been a phenomenon of following projects. Some enterprises with weak basic conditions have begun investing in large-scale polyester fiber projects. With the rapid growth of the national capacity, the profit margins of the projects have narrowed down, so some projects that rely on bank loans and investment will face greater risks.

Yu Chuankun, vice president of Rongsheng holding group, said that in the analysis of the reasons, enterprise development must always be market-oriented and can not rely on policy and government, and how much capacity it can do. Some enterprises were able to make profits in the next 35 years if they could expand their loans. But with this downturn, these enterprises will inevitably encounter difficulties.

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In the interview with reporters, many enterprises expressed their understanding of the bank's behavior. An enterprise in helplessness expressed the need to respect the market economy's survival of the fittest mechanism. In addition, a number of small and medium-sized enterprises expressed the hope that banks could listen more to the aspirations of enterprises, not to link up the capital chain, or to pay more attention to the legitimate needs of enterprises with good management.

The above bankers believe that the overall competitiveness of Xiaoshan chemical fiber textile enterprises is still relatively strong. In the 2008 financial crisis, Xiaoshan chemical fiber and textile enterprises rarely fled and broke up due to the broken capital chain. The local also said that the local predicament, compared with other parts of Zhejiang, is not so serious, showing a strong local local economy's ability to resist risks.

At present, banks are adhering to the principle of "treating differently, supporting superior and inferior" for the implementation of chemical fiber textile business, and do not deliberately tighten lending to all chemical fiber and textile enterprises. This expression has also been affirmed by several local businesses and people in the industry.

　　 Multiplayer game

At present, a number of local coordination meetings have been held. Forum The main purpose of coordination is to establish the "fusing mechanism" of mutual insurance chain. A number of bank representatives said at the meeting that they would continue to do well in cooperation between government, banking and enterprises, and to maintain a win-win situation of government, banking and enterprises.

In order to stabilize the situation, the local government is actively involved. The "opinion" document issued by the local government is divided into four types of enterprises, namely, key support, reorganization of enterprises, bankruptcy according to law and escape from debts according to the situation of enterprise assets and liabilities, production profits and market prospects. At the same time, policy requires enterprises to persist in seeking truth from facts and actively carry out self rescue and obedience assets supervision.

In terms of banks, the document proposes that enterprises whose bankruptcy according to the law should be punished according to the law and the trial concluded by the judiciary should be written off by banks. For enterprises with serious insolvency, banks are required to do everything possible to dispose of their own assets first, then repay the insufficient part of the bank loans after they are disposed of, and then undertake the loan transfer mode by the guarantee enterprises, and suggest establishing the host bank mechanism. At present, a number of coordination meetings and seminars have been held. The main purpose of coordination is to establish the "fusing mechanism" of the mutual insurance chain. A number of bank representatives said at the meeting that they would continue to do well in cooperation between government, banking and enterprises, and to maintain a win-win situation of government, banking and enterprises.

Analysis of the industry, the next thing to see is the game between local governments and banks. Enterprises should rely on the government to rescue them, but "there is no money in the hands of the government, so there is little room for operation."

Economists believe that modern commercial banks can rely on state assets to create credit. In this crisis, there is no need to worry about the expansion of risk. Commercial banks should not be able to cope with debt pressure when the government comes to the rescue to avoid a run. From experience, around 2000, banks write off bad debts for state-owned enterprises. This time, the key is whether banks have any desire for private enterprises.

　　 Ways to resolve

To solve the problem of mutual insurance, we must first study and solve the problem of excess capacity. From a macro perspective, the financing system is not sound and the structure is single, which is the crux of the problem. In addition, when the real estate continues to boom, abandoning the main business and entering the real estate industry is also one of the reasons for manufacturing enterprises to face the threat of death.

Long-term research Chemical fiber Market Local professionals said that the problem of fund breaking caused by mutual insurance and joint guarantee has been more frequent in recent years. The direct reason is that the demand is not strong and the capacity growth is too fast, resulting in too much pressure on the production capacity. He said that the problem of chemical fiber textile will also enter the market after the assets are sold, and the capacity of the whole industry has not been affected too much. To solve this problem, we must first study and solve the problem of excess capacity. He believes that the overall downstream demand will increase, and capacity depends on the growth of demand. There are two ways to solve the problem. First, the problem of capacity needs rational investment of enterprises; two, the problem of debt depends on CPI hedging. "It takes time to solve this problem. We need to use time to change space."

For the production, Yu Chuankun believes that at present and for some time to come, enterprises should be cautious when investing, one is to clarify their capabilities and positioning, the two is to assess the future development of the industry, and three, to strengthen internal management. And the whole society must establish a credit system. Production and lending depend on a more healthy credit relationship.

From a macro perspective, the financing system is not sound and the structure is single, which is the crux of the problem. The situation in Jiangsu and Zhejiang provinces is relatively small in foreign countries. Yu Ze said that because developed countries have multi-level capital markets, small and medium-sized enterprises rely on community banks, venture capital, private equity investment and so on. China's financing channels are relatively simple, which inevitably leads to the phenomenon of interconnection and mutual protection in order to obtain extremely scarce bank loans. Therefore, the emergence of this problem is the result of the underdevelopment of China's financial market, and the fundamental solution is to establish a multi-level financing market.

In addition, when the real estate continues to boom, abandoning the main business and entering the real estate industry is also one of the reasons for manufacturing enterprises to face the threat of death. A company said that some local enterprises did not concentrate on the main business of chemical fiber weaving. They only took the enterprise as a financing platform and then went to engage in real estate. And the local real estate industry growth rate is down now, the transaction atrophy, so that the owners of the enterprise's capital can not turn around. "The whole economy is too dependent on real estate. This is a matter at the national level, not the chemical fiber industry."

　　 Financing problems Pending solution

Because the problem of fund breaking caused by mutual insurance is not new in Xiaoshan, and it has enough experience in dealing with it. But this time, unlike the past, the central government has not issued any stimulus and support policies, which has led to the lack of local government's handling of the problems. But in respect of the decisive position of the market in the allocation of resources, it is even more crucial to refine the policies and separate discussions. This tests the strength of the enterprises, the patience and wisdom of the government, and the vision and strategy of the banks.

Local governments, banks and enterprises have also realized the key to this predicament under the accumulation of contradictions. In addition to discussing the deviation and overpolicy of the policy, struggling enterprises have tasted the strong will of the market, while the government is maintaining the overall situation and at the same time respecting the market as the precondition, and the bank also mediates clearly that it is not in the vacuum itself. The government intends to build a platform for communication and communication, and the solution to the problem depends on the attitude of banks. Whether we can work together with private enterprises should consider not only the current performance of enterprises, but also the development prospects of private capital. At present, a series of central banks encourage the development of private capital. Commercial banks should see the potential of their clients.