Wenzhou Private Lending Crazy Shoe Factory Boss Was Forced To Jump Off The Building

According to police sources, 27 days only received 1 police officers jumping off the building, the boss has 4 enterprises. Rumor has it that the boss owed 400 million yuan.

Recently, Wenzhou Boss running and business failures frequently appeared. From March to this year, the south of the Yangtze River Leatherwear Some well-known private enterprises such as the three flag group, Hong Kong Shang Ji, Portman, Tianshi electronics and so on have suddenly been left empty. Only the media have publicly reported that the Wenzhou entrepreneurs who have gone nowhere have reached more than 10. In September 21st, Hu Fulin, chairman of Wenzhou Xintai group, was the biggest local eyeglasses dealer in Wenzhou.

In September 27th, 2 local bosses jumped out of the Wenzhou local forum. According to police sources, 27 days only received 1 police officers jumping off the building, the boss has 4 enterprises. Rumor has it that the boss owed 400 million yuan.

Shoe factory owner of Wenzhou

According to reports, in September 27th, 2 local bosses jumped out of the Wenzhou local forum. According to netizens, 27 o'clock at 1 p.m., someone jumped from the 22 floor of Shun Jin mansion in Wenzhou. The man jumping from the building is the owner of Wenzhou Zheng Deli shoe industry in Lucheng, Wenzhou. On the 27 day at 4 p.m., the owner of the Wenzhou Mermaid shoe industry, also located in the shoes of Shuang Yu, jumped off the 5 floor of the factory.

However, some netizens broke the news that the only one who jumped from the building was the boss who was making profits. The mermaid was actually one of the profits. brand 。 I heard he owed 4 hundred million of his debts.

According to police information, they only received a report from a boss jumping off the building yesterday. There are 4 enterprises under the name, and the specific circumstances are still under investigation.

Wenzhou bosses run and business failures frequently occur, which has attracted the attention of the Wenzhou municipal government.

In recent days, the government departments at all levels in Wenzhou have given up the rest time and are meeting with only one theme: how to deal with the current financial situation and the risk of private lending. A series of measures have been formed and are being put into practice.

In September 25th, the Wenzhou municipal Party committee and the municipal government decided to set up two institutions to deal with financial problems and solve the problems. For example, enterprise support, private enterprise financing coordination, combating evil forces, bankrupt enterprises after disposal.

The biggest problem facing Wenzhou enterprises is the capital problem. And the source of capital is financial institutions such as banks, and the two is private lending.

Financial institutions: the government came forward to negotiate with banks.

After an enterprise fails, the enterprises that guarantee each other and the peer businesses that have business dealings are often involved in problems such as financial difficulties. In order to protect their own interests, banks and private creditors came home to collect debts, causing them to get into trouble or even go bankrupt.

After the owner of Xintai group, a leading enterprise in Wenzhou's eyeglasses industry, fled, the ten companies that had secured ties with them were chased by banks and no longer continued to lend.

In order to prevent similar problems from happening, the governments of counties and cities will come forward and negotiate with the district banks.

According to the spirit of Wenzhou, banks are required to renew their loans to the corresponding enterprises and reduce their financing interest rates and costs.

Specifically, banks are not allowed to raise interest rates, do not borrow money, do not hook up deposits and loans, and do not add fees.

In the current economic and financial situation and private lending risk forum, the person in charge said that if banks support the local economy at a critical moment, banks will also receive local economic support accordingly.

Private lending: setting up a local financial supervision center

Many banks are forced to turn to private lending. In the first half of this year, the central bank's Wenzhou central sub branch survey shows that the scale of private lending in Wenzhou has reached 110 billion yuan.

According to statistics, the amount of illegal financing has increased from about 10000000 yuan per day in the Wenzhou intermediate court to about 40000000 yuan per day.

The risk of private lending in Wenzhou is intensifying. Zhou Dewen, President of Wenzhou SME Development Association, believes that the current rate of private lending in Wenzhou has exceeded the highest historical value and the annual interest rate is as high as 180%. This is an annual gross profit margin of 3%-5% between the majority of SMEs can not afford.

According to the deployment, Wenzhou will further strengthen the norms of private lending and set up a local financial supervision center. The main targets are consignment firms, Guarantee Corporation, pawnshops and so on.

According to the financial office of Wenzhou, the establishment of a local financial supervision center aims at guiding private capital into the formal financial sector and the real economy, rather than staying too much in the private lending market. {page_break}

48 Guarantee Corporation promise to reduce premiums

There are many illegal Guarantee Corporation in Wenzhou, playing the role of usury.

According to police sources, 27 days only received 1 police officers jumping off the building, the boss has 4 enterprises. Rumor has it that the boss owed 400 million yuan.

In September 26th, in view of the current risks of private lending and financial risks, 48 financing Guarantee Corporation in Wenzhou gathered together to discuss countermeasures. The Wenzhou Municipal Committee of letters was presided over.

Wenzhou Guarantee Industry Association said that at present, some enterprises in Wenzhou have encountered financing difficulties. Guarantee corporation should work with enterprises to overcome difficulties, actively provide loan guarantee services for enterprises, and appropriately reduce premiums.

48 financing Guarantee Corporation issued an initiative that will work together to standardize the development of the industry. They promised not to engage in illegal activities such as deposits, loans, illegal fund-raising and other illegal activities. They will also establish information reporting platform to disclose relevant guarantee information in a truthful, complete and timely manner.

Next, the relevant departments of Wenzhou will strengthen the standardized management of the guarantee industry, punish illegal Guarantee Corporation, and support regular financing Guarantee Corporation, so that the guarantee industry can become a buffer belt and link between enterprises and banks.

Wenzhou officials are usurping usury.

According to the new express, "the usual rule is that I help you work, you help me to usury and make use of each other, in fact, it is a disguised bribery act."

Shi Xiaojie, a native of Yongjia, Wenzhou, reported that in 2009, he thought the local leading private enterprise financing in the name of Shun Ji group raised about 1 billion 300 million yuan to society at high interest rates. Shi Xiaojie and her husband, Liu Xiaosong, took the money and fled the family on the 21 th of this month. After several days, Shi Xiaojie and Liu Xiaosong were arrested by the Yongjia police. According to people familiar with the matter, 80% of the creditors are civil servants.

Shi Xiaojie, originally a finance officer of Shun Chi Group, left in September 2009. Later, she forged some materials in the name of Shun Chi group to raise funds for usury by her family or bank, so as to provide operational funds for her family Guarantee Corporation.

"When raising funds, annual interest rates are high and low, lending funds interest rates between 24% and 140%, the highest annual interest rate of more than 140%." A creditor who did not want to be named raised money.

Shi Xiaojie family's bank accounts revealed that in August, through the bank account, Shi Xiaojie's husband and wife got more than 8 billion dollars in a month. The bank has initially inquired, "the 800 million heads of accounts can not be found, or the identity is fictitious, or the person has disappeared."

"There is no right to complain, so much money is lost, and how much borrowed and hard to say, we must try to keep a low profile and not to prosecute the court. I'm getting depressed soon! "A creditor who refused to be named complained. The husband of the creditor was a local civil servant in Wenzhou. She also said that many of the creditors in the case were similar to themselves. "Now many people who report to Yongjia have not been spancribed. They may not dare to publicize and want to collect debts in private."

Many officials make money by usury.

Some people in the local political and legal circles of Wenzhou also said that the situation of private capital entering private usury was very common. "These bosses or Guarantee corporation who have crashed or run because of usury usually have a lot of ties with local civil servants, and now some people are making a fortune on that." A Wenzhou judicial personage said.

Before investigating similar illegal deposit taking cases or fund-raising fraud cases, it is not only common but also obvious that officials' funds go into usury. For example, at the beginning of this year, when the Public Security Bureau of Longwan, Wenzhou, investigated the case of illegal deposits of public deposits, it found that the list of creditors was local judiciary, and the victims involved ranged from 15 million, 20 million 750 thousand, 35 million to 80 million.

Wenzhou shoe enterprises in winter

According to the twenty-first Century economic report, China's footwear exports account for 65% of the world's total exports. The export markets include Europe, America, Russia, Japan and so on. Wenzhou and Jinjiang are known as the "shoes capital of China".

However, Wenzhou's low cost and low price market model has been rejected by the European Union. The EU believes that China's shoe industry is dumping at a low price. In 2006, it began collecting up to 16.5% of the anti-dumping duties on leather shoes exported to China. It was not until April 1st this year that 16.5% anti-dumping duties on Chinese leather shoes were formally abolished. Wenzhou's small and medium-sized shoe companies, which are already in the second round of the financial crisis, are no longer able to survive.

From 2006 to the end of 2010, the sales of leather shoes exported to Europe dropped by 20%, due to the EU's anti-dumping duties, which directly led to 20000 unemployed. On the one hand, the order decline, while the cost increases, Wenzhou shoe enterprises housing leakage is even the night rain.

Wenzhou Tamar Shoes Co., Ltd. (profit) is between 2%-5%. Labor costs have risen by at least 20% this year, and the two major raw materials for leather shoes, leather and rubber, have risen by about 20%.

"The government says it is supporting the real industry, but is it not difficult to use it? Is it not because it wants to die?" Cai said. In their view, private enterprises have entered a strange circle. Businesses lose money, businesses need loans, banks do not lend money to look for private capital, usury goes to the industry to make money too slowly, may be part of the production, and the other part takes money to generate money. However, this mode of operation has brought endless worries for the development of enterprises.

According to police sources, 27 days only received 1 police officers jumping off the building, the boss has 4 enterprises. Rumor has it that the boss owed 400 million yuan.

"Now the formal channel loan is too difficult, to the bank loan ten million needs to deposit 5 million first. If these small and medium-sized enterprises are not short of money, how can they go to loans? And high profits have been tempting. Who can escape the temptation of profit? "Cai Hua said.

Zheng Deli shoe industry boss jumped the building, the giant Bang shoe boss "run", or is unable to escape this strange circle and go to extremes. {page_break}

The death of industrial structure

The small and medium-sized private enterprises represented by Wenzhou have been known as low technology, low cost, labor-intensive and low value-added industries. From clothing to lighter to glasses and valves, these low value-added industries have also been criticized in recent years.

The upgrading of industrial structure is the most frequently seen phrase in China in recent years, and there are other similar things from "manufacturing to creation". But Cai does not seem to approve of this. "Industrial upgrading is right, but it seems that we have little direction for upgrading."

The government of Wenzhou has issued some opinions on further supporting large enterprises and large groups. The enterprises with total assets of more than 400 million yuan, annual sales income of more than 500 million yuan, in fact paying taxes of more than 20 million yuan, and good prospects for development are included in the training plan of large enterprises and large groups, and support efforts are being made in all aspects. For small, small, scattered small and medium-sized enterprises mergers and acquisitions.

But industrial upgrading investment is too large and profits are too low. More bosses will turn their attention to investing in new energy or simply investing. Xintai group is one example. Listed companies are also "playing with capital", such as Shanshan, YOUNGOR, red beans and other traditional industries and enterprises in Jiangsu and Zhejiang have made real estate development or investment.

Grey finance brewing China style crisis

According to the economic reference daily, since April this year, more than 80 business owners in Wenzhou have been missing, companies closed and employees have been paid for wages. Since September alone, there have been up to 25. It is understood that in the "disaster hit" Longwan, in August, there have been more than 20 start road events. A local lender said, "at present, only 10 billion of Longwan's outbound capital has been estimated, and many of the SMEs' liabilities account for 3 of the total loans and 7 of the private usury."

However, the collapse of the usury in Wenzhou's small businesses is only a microcosm of the financial grey zone crisis in the national private lending market. As far as we know, the high-risk areas of loan risk are not only in Zhejiang Province, but also in Jiangsu, Fujian, Henan and Inner Mongolia provinces. Some experts believe that if there is no strict supervision, fear will lead to the Chinese style credit crisis.

Recently, a survey report of the central bank research bureau pointed out that when China's private lending market began to rise last year, the stock of this market has exceeded 2 trillion and 400 billion yuan, which accounted for more than 5% of the loan market at that time. In the past two years, the amount of private lending has increased year by year, and the stock fund has increased by more than 28%.

Many lenders indicated that half of their loans were owned by their own funds, and the other half was borrowed from banks. Usually, "we mortgaged the property to the banks, borrowed 2 cents monthly interest, and then released the interest rate at 4 and 5 cents to earn the middle interest rate for small business owners." Or "take 1.5 cents or 2 cents monthly interest from a group of bosses to borrow money and accept the draft, and then secretly release 3 to 3.5 cents."

Analysts pointed out that the usury market promoted the financial disintermediation, so that the phenomenon of bank deposits outflow became more obvious, but such free trading is currently unable to regulate. Zhou Dewen, President of the Wenzhou SME Development Association, said: "the private lending market has long been the main source of funding for many small businesses in Wenzhou. Many enterprises are very difficult to borrow from banks, and this year's policy is tight, and the amount of banks is limited, and the trend of small businesses flocking to private lending has broken out."

Because of this, the rate of private lending has soared this year. It is understood that at present, the monthly interest rate of local private lending in Wenzhou is generally around 3 points, some even 5 to 1 cents, while the "5 profit" equivalent to the annual return rate of funds is 60%. Zhou Dewen disclosed that some usury had an annual interest rate of up to 180%. Such interest rate temptation has led to the crazy expansion of the private usury market.

According to the central bank sub regional bank of Wenzhou recently released the "Wenzhou private lending market report" shows that the scale of the private lending market in Wenzhou is about 110 billion yuan, lending interest rates are also at a high level, the annual comprehensive interest rate is 24.4%, and 89% of the households in Wenzhou and 59% of the enterprises are involved in private lending activities.

Most small businesses use capital to supplement liquidity shortfalls for short term production. But the Central Bank Research Bureau also pointed out in the report that in the private lending market capital flows, we can not exclude a part of private lending funds for stocks and real estate. According to observation, at present, the crisis of usury in real estate has begun to appear. Inner Mongolia Ordos private lending scale of more than 200 billion yuan, and the highest annual interest rate is generally above 60%, the amount of money into the real estate market is considerable, analysts said, because of this year's capital chain breaking housing prices, resulting in the Ordos's uncompleted residential flats have been everywhere.

According to police sources, 27 days only received 1 police officers jumping off the building, the boss has 4 enterprises. Rumor has it that the boss owed 400 million yuan.

Similarly, the small and medium-sized enterprises in Sihong County, Jiangsu Province, dubbed "BMW township" by the outside world are numerous, especially the real estate enterprises. According to local incomplete statistics, the surge in demand for funds has resulted in over 85% of the total private financing scale of the whole county, which is about 2 billion yuan, and a large proportion of them have flowed into the property market.

This year, small and medium-sized enterprises in China are faced with the impact of unfavorable factors such as rising labor costs, rising raw material prices, appreciation of the renminbi, and excessive tax burden. It is undeniable that some small businesses have caused problems in the capital chain because of their poor management. But many analysts in the industry think that most small businesses are still in the budding and growing period, and the problem of capital turnover is urgently needed to be solved.

A loan shark in Wenzhou said, "at present, only 10 billion of Longwan's escaping funds are estimated, and many SMEs account for 3 of their debts and 7 of the private usurious loans." A number of commercial banks and related departments of the company's Banking Department said that the enterprises that issued small business loans were thoroughly investigated and investigated.

It is understood that a large proportion of private lending funds come from listed companies. Analysts in the industry believe that, for listed companies that lend money to small and medium enterprises, especially housing companies, even if housing companies mortgage assets such as land to listed companies, they are also likely to be two mortgages, and their first mortgages have been mortgaged to loan banks. Therefore, once the company is bankrupt and bankrupt, the bank is the first creditor of the bankrupt company. Whether the listed company can get the compensation is unknown. Besides explicit risk, once a listed company's loan yield exceeds its main business, it will probably affect the normal development of the main business of listed companies.

In addition, in the private lending market, the risk of social financing intermediaries is larger and involves a wide range of involvement. In Wenzhou, there are more than 1000 Guarantee Corporation, investment companies, consignment banks, pawnshops, and old goods dispatching lines. Some of them borrow the name of the operation, and violate the capital business, and collect high commission and interest.

Wenzhou Public Security Department report shows that in the first 8 months of this year, 17 cases of illegal fund-raising were filed, involving 550 million yuan, up 30.77% compared with the same period last year, and most of these illegal fund-raising cases are related to private lending. Over the same period, there were 71 cases of illegal and criminal cases triggered by private lending guarantees and disputes, an increase of 16.39% over the same period.