Ye Tan: The Financial Industry Should Not Take The Old Road Of Excess Capacity In The Real Economy.

Small and micro enterprises financing It is difficult to solve the problem. To increase the financing data of small and medium-sized enterprises by raising the caliber of small and medium-sized enterprises is the data injection, which is totally different from solving the financing difficulties of small and micro enterprises. It is not true that the small and micro enterprises' bad debts will be borne by the local government.

By setting up thousands of private banks?

　　 Internal control of private banks remains to be improved

Mei Xingbao, a member of the CPPCC National Committee, recently proposed that private capital should be set up to set up small and medium-sized banks and other financial institutions to meet the financing needs of "mass entrepreneurship and innovation" advocated by Premier Li Keqiang. Officials must have considerable courage and responsibility to make private financial institutions "hundreds of thousands or even tens of thousands of land".

This will be a great leap forward. During the "two sessions" in 2014, Shang Fulin, chairman of the CBRC, announced for the first time the news of breaking ice by private banks. By the end of that year, a total of 5 private banks were allowed to establish. Such a speed is indeed not satisfactory, and the development of private banks needs to be speeded up.

But on the other hand, we should also see that the large-scale establishment of private banks is just a representation. Establishing the right way of financing and establishing a low cost financing and wind control system suitable for SMEs are the real core of the problem. Otherwise, small loan companies have long solved the problem of local financing.

Why did the small loan company fail to make breakthroughs on this issue? The core is not because it can not absorb, but to a large extent alienated into usury institutions in high-risk situations. To meet the bridge loan is also OK, the enterprise financing from a small loan company for a long time is like killing a pig knife on the neck, and the normal business enterprise will not do so.

In the past, there were many setbacks in the pilot projects of private banks, which were related to the imbalance of internal control mechanisms of private banks, such as related loans, tunneling of large shareholders, rent seeking and so on. This stirred up a wave of violent opposition, and the status of state-owned financial institutions was strong, not only because of the special care of state-owned enterprises, but also because of the failure of some dishonest shareholders.

　　 establish Grassroots credit It is the current difficulty.

On the other hand, until now, risk management of small and micro enterprises is a worldwide problem. Banking system to solve the financing difficulties of small and micro enterprises in Germany, established in small and micro enterprises are generally trustworthy, local governments for small and micro enterprises on the basis of credit.

Some of the local Guarantee corporation are also on the way of usury. Sometimes credit increases will become rent-seeking. In short, we need to find out the financing mode of small and medium-sized enterprises with convenient operation, small rent seeking space and low cost.

The successful local banking mode, such as the Taizhou Luqiao model, has also been tested in the Guangdong and Shandong rural reform models, with remarkable results and low bad debt rates. Through the mutual supervision mode of private villages and villages, the users will be rewarded with letters. In the grass-roots credit organizations that constitute human relationships, they will never default on their debts until the last resort. With the revitalizing of land and assets, farmers' land transfer rights, income rights and mortgage rights in Zaozhuang and other places also take root.

The establishment of credit at the grass-roots level needs to be done by thousands of households and tens of thousands of households. The integrity of the three parties of the local government, financial institutions and farmers is indispensable. On the basis of local social relationships, this is indeed not a matter of releasing thousands of private banks overnight, otherwise it will be too easy and utopian.

　　 Quality is better than quantity.

Innovative enterprises are currently relying on capital market Equity investment is the main form. From venture capital to mergers and acquisitions, exit from the market, to new three boards and to the gem, a road of financing emerges. Now we need to be solid and sophisticated, so that the capital market is no longer a gluttonous feast, but a feast for honest and profitable enterprises and a feast for professional and efficient investors.

Risk still exists objectively. According to the data shared by Mr. Li Jipei, executive director of Lan Xin Asian investment group, China's PE (Private Equity Fund) has acquired over 100 billion dollars in the past more than 10 years from LP (limited partners). Its financing ability is beyond doubt, but its reward is bleak.

In the past ten years, LP has only recovered 30% of its investment from China's PE hands; in the same period, the figure in the United States was 200%. Last year, 221 Chinese companies listed on A, H-share and US stock markets, making progress much more than 66 in 2013, while in the US, 55% of PE in 2014 reached or exceeded their financing plan limit, the highest proportion since 2009, and the speed of financing was far ahead of several years. VC financing also amounted to US $29 billion 800 million, an increase of 69% over last year. Meanwhile, the average annual net return of the PE industry in the US has reached a record 14.6% of ten.

The above data do not prove that China is not suited to venture capital, but needs changes in the field of venture capital. It needs more integrity and needs a more professional team to operate. China already has a large number of venture capital teams specializing in the Internet of things, medicine, food and even mineral water. They are growing up, and many of the new registered market participants have gained "angel" favor.

Small local banks and capital markets are the two way out for small and micro enterprises. In the era of excess capacity, too many enterprises will lead to price war, which will exacerbate market decline. Only high quality, strong professionalism and comparative advantage can get high returns. So is the real economy? Is this not the case in the financial industry?