Where Is Wenzhou Going Through A New Round Of Financial Crisis?

< p > in 2011, when Wenzhou was highly watched by the whole country due to the economic crisis, recently it became famous again because of the collective running away of famous enterprises and their masters. Clothing, shoemaking, spectacles, lighters and furniture industries were all on the brink of emergency. < /p >
< p > for a long time, < a href= "http:// www.91se91.com/news/index_c.asp" > Wenzhou < /a > almost all industries are closely related to real estate and financial lending. However, the risk of cyclical policy is coming again. By the time of press release, the real estate value and housing price in Wenzhou have been declining for 15 consecutive months. The price of housing has dropped from 15613 yuan per square meter in July 2013 to 13630 yuan per square meter in June, which has shrunk by nearly 12.7% in one year. < /p >
Less than P, the whole industry chain is approaching the red line, and micro stimulation and support for transformation and self-help become the key words. Regarding this, Zhou Dewen, the representative of the Zhejiang Provincial People's Congress and President of the Wenzhou Association of small and medium enterprises, said in an exclusive interview with reporters: "the real economy of Wenzhou is closely related to the development of real estate. Many famous enterprises are facing closure and are in a bad transition period. After the devastation of the two economic crises in 2008 and 2011, this crisis is much more serious than the former. Mergers and acquisitions and backward elimination have gradually become a trend. < /p >
< p > < strong > < a > href= > http:// > www.91se91.com/news/index_c.asp > leading enterprises < /a > dangerous situation. < /strong > /p >
< p > in May 29th of this year, Xu Yunxu, the famous businesswoman in Wenzhou, President of the Ouhai Women Entrepreneurs Association of Wenzhou and tengxu dress female boss, was confirmed to be out of joint. The bank that had previously loaning to the company asked the government to take over the business in full. Although Xu Yunxu's sacking is suspected to be related to tax evasion, many people in the industry have linked the collapse of tengxu's clothing with its capital chain break in the failure of real estate investment. < /p >
According to the reporter's understanding, tengxu's clothing is only the first piece of the "Domino dominoes". Many local tax payers and star enterprises have been forced to break even. Many of them are in a predicament of losing more than one day in a more construction day. P < /p >
< p > the pillar industry relies heavily on real estate. It has long been one of the most striking features of Wenzhou's economic model. Chen Jinbiao, mayor of Wenzhou, once admitted to the outside world that the high level of non-performing loans is mainly related to macro policies and Wenzhou entrepreneurs' concept. The transformation and upgrading of enterprises are slow. Under the situation of poor profits, some entrepreneurs are eager to make quick profits and quick profits. They hope that the return on investment will be faster, and they may go to real estate, stir fry or even fry money, resulting in problems in the capital chain. < /p >
Why do Wenzhou industrialists who have suffered two rounds of economic crisis on this issue fail to escape when the new crisis comes this year? < /p > p
< p > "the concept of the first round and the second round of crisis is fundamentally unfounded. Since the beginning of the financial crisis in 2008, Wenzhou has not yet come out of the crisis." Zhou Dewen said. "At that time, the 4 trillion series of policies introduced by the government just gave Wenzhou a shot in the arm. After a short period of recovery, deep-seated problems had not healed." < /p >
< p > compared with the collapse of SMEs in Wenzhou in 2011, this round of Wenzhou entity crisis seems to be fiercely fiercely. The leaders of various local trade associations are right to say that the situation is "very difficult". An entrepreneur in Wenzhou, who did not want to be named, told reporters: "the last round was dominated by small and medium-sized enterprises, and the main problem was large and medium-sized enterprises. The ability of large enterprises to resist risks is relatively strong, and has survived the first wave of financial crisis. However, under the impact of the new financial crisis, it has been unable to keep up. The collapse tide has been spreading among well-known large enterprises. It is rumoured that 13 leading enterprises in Wenzhou will soon go bankrupt and will be seen in the second half of this year. " < /p >
< p > < strong > small scale industry > /strong > /p >
The industrial downfall triggered by the Wenzhou economic crisis in 2011 P caused the local enterprises' overall operating rate to be less than 60%. And the entrepreneurs said frankly that since the second half of the year, the operating rate of Wenzhou's manufacturing industry has seen a similar situation. The profit is generally only 1%~3%. "A local leading enterprise wanted to apply for bankruptcy two years ago, but considering its influence in the industry, the local government did not agree. Finally, the two sides weighed the face and the rights and interests of the leading enterprises and finally supported them so far." < /p >
< p > real estate "quick money logic" is very popular in Wenzhou's industrial circles. Wenzhou's miracle has also been achieved. At the same time, its disadvantages are also very prominent. Private lending, which once was fry to five cents a month, is an important inducement. < /p >
< p > Zhou Dewen stressed that loans and real estate investment are closely related. If enterprises are going to have private lending for a long time, they will surely die. Because private lending is high interest, interest is at least 4 times higher than that of banks. Today, so many financing industries in Wenzhou have lost the support of real estate profits, not only can not make profits to enterprises, but also need to draw blood from capital, which is a double blow. < /p >
< p > "nowadays many enterprises in Wenzhou have to choose to sell the real estate sector and reduce the proportion of loans sharply, from the original fifty million to millions, and return to the enterprises to use surplus funds to do business, and no longer blindly pursue large-scale." Zhou Dewen said frankly. < /p >
< p > < strong > transformation ability < /strong > < /p >
After the economic crisis triggered by several rounds of real estate and credit, P industry in Wenzhou is permeated with the trend of industrial upgrading and diversified transformation. All kinds of new investment are surging. The heavy manufacturing represented by solar energy, clean energy and shipbuilding, is most favored by local governments. < /p >
< p > < < a href= "http://" www.91se91.com/news/index_c.asp > "international dumping < /a > dispute and overcapacity doubt", Wenzhou's "red wind policy document on supporting distributed photovoltaic power generation" and other red headed policy documents "adverse wind". Since three or four years ago, traditional manufacturing oriented Wenzhou companies have set foot in new energy sources, and Wenzhou's photovoltaic enterprises are investing in the construction of downstream photovoltaic power stations. < /p >
< p > "for example, the most popular photovoltaic enterprises, the local government only encourages enterprises to transform, but does not provide a better direction of transformation. Traditional entrepreneurs who are not familiar with these new industries only see opportunities at that time and fail to see the potential crises and economic bubbles that the future development will face. Zhou Dewen said. < /p >
"P > also has a serious transformation in non related fields, as well as Wenzhou's local clothing giant Zhuang Ji dress. In 2004, the company's move into shipbuilding industry was seen as a breakthrough water trial project for Wenzhou's diversified operation. However, it was not too long before the Chuang Ji clothing, which was determined to set foot in the shipbuilding industry, came out of the crisis of asset liquidation. After that, the government took the lead and reorganized the market with Shandong's Ruyi. < /p >
< p > there are industry rumors that most of Wenzhou's shipbuilding enterprises have closed down now, and the survivors who had survived the collapse of the 80% shipbuilding enterprises have vanished in the market now. < /p >
"P >" after the economic crisis, some government departments blindly encouraged enterprises to transform and upgrade, but ignored the ability of enterprises to have transformation. Of SMEs in China, SMEs account for 97%, while in Wenzhou, this proportion is close to 99.9%. The foregoing entrepreneurs speak frankly. < /p >
"P >" a large number of small and medium-sized enterprises can not be transformed and upgraded successfully, lacking the support of capital, technology and talents needed for transformation. In Wenzhou, the high-tech industry will lack basic conditions. Hasty rush will only increase the pressure on enterprises who can't even live. < /p >