The Wenzhou private lending crisis since 2011 has once again made Wenzhou the focus of national attention. On February 5th, for the first time in 12 years since the establishment of the Yabuli Forum, a city was included in the conference topic. The theme of “Where is Wenzhou?†is the theme of the forum. What happened to Wenzhou? The industry is low and the danger More than a decade ago, Wenzhou companies and Wenzhou people were also known as natural insulators for the securities market and the virtual economy. Guan Jingru, chairman of China Integrity, recalled that when Wenzhou people did not speculate on the work of the State Reform Commission, now, "How can I borrow loan sharks?" A year ago, a business owner introduced that his factory had more than 1,000 employees. However, his hard-earned profit was less than one million a year, while his wife invested 10 properties in Shanghai and earned more than 30 million in eight years. The one thousand people are not as good as the ones earned by their wives. Many demonstration results like "models" have enabled capital to make the most correct and rational economic choices - to withdraw funds invested in the entity, to transfer to higher-profit areas, to profit from real estate speculation, and later evolved into "selling with money." money". "The problem of the private lending crisis lies in the financial sector, but the roots are in the real economy." Deputy Governor and Secretary of the Municipal Party Committee Chen Derong said at the World Economic and Trade Conference. According to statistics, there are more than 400,000 industrial and commercial entities in Wenzhou, but there are only 18 large enterprises and 599 medium-sized enterprises. The rest are small and micro enterprises. Some low-small traditional industries, in the current macro-control and market environment, the competitiveness is getting weaker. Jiang Huilong, executive deputy secretary-general of the Wenzhou Fastener Industry Association, said that the Wenzhou fastener industry had disappeared by 1,000 companies in one year, mainly because raw material prices have risen all the way, making small enterprises unable to bear the rising cost. Huang Fajing, president of the Wenzhou Lighter Industry Association, said that the industry has gone from 4,000 companies in the most glorious period to dozens of today. The industry's average profit is more than 30% and the current industry profit is only 3% to 5%. An entrepreneur uses "thinner than a blade" to describe the profits of an entity. Even more frightening is that this industrial structure has consumed land indicators too quickly. Chen Derong said on many occasions that Wenzhou local has become an "incubator" for start-ups. Wenzhou thus presents the characteristics of semi-urbanization. “Good places are like Europe, but a large number of areas are urban extension belts, similar to Africa.†The low and small industrial structure, in turn, leads to a poor local environment and insufficient high-end factors, creating a vicious circle. The confusion of the financial system The industry is in crisis and naturally affects banks. As of the end of 2011, the non-performing loan ratio of Wenzhou City's banking industry was 1.36%, an increase of 267% from August 2011 and an increase of 0.92 percentage points from the beginning of 2011. The growth rate was the highest in history and the bank's non-performing loan ratio was near. The first "rebound" in 10 years. However, people are more concerned about the bank's profits. According to the data of Wenzhou Banking Supervision Bureau, in the first half of 2011, 1,330 banking financial institutions in the city achieved a total book profit of RMB 12.349 billion in principal and foreign currency, an increase of 4.157 billion yuan or 50.8%. "In many areas, we can't get in, we can only choose the most easy-to-access real estate." The relevant person of Zhongliang Real Estate Group said at a symposium recently. Another boss who is both an industrial and a microfinance company made it clear that the latter's profits were significantly higher in 2011 than the former. On the one hand, the state-owned monopoly of the financial system besieged the city, making it difficult for private capital to enter the highly profitable financial industry. On the other hand, the industry has encountered financing difficulties. Wenzhou enterprises had to turn to the private sector. According to Ma Jinlong, a local economist in Wenzhou, 70% of Wenzhou enterprises rely on their own funds and private financing, and even enterprises reach 80%. Chen Derong called at the Yabuli Forum: Wenzhou private lending should not be demonized. He said: "Without Wenzhou's private finance, there is no Wenzhou market economy, and there is no Wenzhou entrepreneur... If we compare it with the market economy, with our entrepreneurial spirit, and demonize it, I think it is right. Wenzhou is unfair." Bamboo fiber wall panel is made from wood powder, bamboo powder and environmental high polymer material. light calcium carbonate, polymer resin with other auxiliary materials, adding flame-retardant polymer high temperature extrusion.It is a new environmental friendly material that no formaldehyde,non-toxic.Bamboo fiber wall panel material make wall panel be with high hardness and durability. 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Summary of Wenzhou private lending crisis since 2011, once again let Wenzhou become the focus of national attention. On February 5th, the Yabuli Forum was the first time in 12 years since the establishment of a city into a conference topic, directly on "Where is Wenzhou?"