Industry News

Weida main product booster cables , battery clip, tow rope,ratchet tie down.

« Wenzhou money War: 60 billion government loan-guarantee stable demandProduct stability and reliability as new challenges Instrument Industry »

Focus Wenzhou: "rescue" policy can save the Electric Capital

  Wenzhou is a coastal city landscape Jianghai blend is full of vigor and vitality of the city, it is a well-developed private economy, rich cultural heritage of the city. In recent years, the city of Wenzhou have been walking in the forefront of efforts, is a passionate energy, in particular, can start the city. Family of industrial and professional market approach developed in the "Wenzhou model", has gradually formed small commodity, tow rope large market structure, reform and opening up, the private economy in Wenzhou has created a large number of the nation.

    However, the recent exposure of CCTV "Wenzhou private credit crisis", resulting in Wenzhou funds strand breaks, many SME owners have been "on foot.battery clip " During the National Day, Premier Wen Jiabao to lead the central bank, the Ministry of Finance, Banking Regulatory Commission and other departments to research the economic operation of Zhejiang, Zhejiang, 1 month and requires to stabilize the situation of SMEs in Wenzhou, rectify the financial order, to curb the tendency of usury, processing chain, enterprise funds fracture, to prevent the risk of spreading.

    Followed by Wenzhou municipal government has also taken the further relief measures. October 8, the Wenzhou city government has deployed personnel,booster cables organized 25 working groups stationed in Wenzhou, the local state-owned banks and big firms, joint-stock banks in the Wenzhou branch, to assist the financing bank and the banking institutions do docking, requiring banking institutions do not draw money, does not push credit. The other hand, loans to businesses to help banking institutions to understand the situation, according to "local management, an enterprise, one policy" principle to effectively solve the problem for SMEs. For now business owners "at running boom", Wenzhou is actively respond to the various industry associations, 48 ??financial guarantee company as a corporate initiative to provide low-premium guarantee, while banking institutions to provide enterprises with a low interest rate loans.

    ratchet tie dowm The Wenzhou government adopted a series of "rescue" policy can really save the Electric Capital, the media have different opinions, "Wenzhou Credit: rescue die, and let go to live", "Wenzhou emergency: the city is the best treatment to save City "," Wenzhou type "rescue" to save the save I, had a moment "...

    I believe that: Wenzhou lending crisis is the inevitable result of the country's financial repression. What is it that financial repression, financial repression mainly in developing countries, is too much control of regulatory clearance in developing countries often means, for example, the official interest rate remained at a low level and control of international capital flows, creating behind the banking system, financial products, a single, low nominal interest rates, credit quotas, high savings rate results.

    Specific to the Chinese scene, private lending in the current usury carnival is also a system of birth defects under the helplessness phenomenon. Wenzhou capital has always been active, from the property market, capital market until the coal market, from the mainland to overseas, everywhere there had flashed its presence, however, recent policy changes, making these funds face a lack of investment channels in favor of the route through civil Finance seek profits.

    Not only in Wenzhou, China and more SMEs are faced with financing difficulties, it is a long-standing problem. Wenzhou wealth creation from the initial industrial investment, a variety of obscure primary manufacturing industry is the source of Wenzhou, the capital pot of gold. However, in recent years, more and more inclined to abandon the traditional Wenzhou industrial investment, instead keen on financial speculation. Coupled with the continued tightening of monetary policy, SME financing more difficult, private lending and other loan sharks to provide a sufficient market behavior.

    With the profits of the domestic industry chain focused on the upstream business, while a large number of private manufacturing companies focused on downstream areas, and its profit margin has dropped to freezing point. Thus, if there is new bad policies, is enough to give the main traditional manufacturing industry, turned to accumulate funds for investment speculation disorder, which is to end the accumulation of private financial market risks outbreak lay hidden. Today, products from Wenzhou to the object of speculation of "usury." However, in this process, Wenzhou, private capital investment in industrial fortune, but more and more marginalized.

    However, how common Wenzhou private lending in the end? According to official data estimates of Wenzhou, the size of private lending has been more than 120 billion yuan; the same time, the high degree of private involvement is also staggering, according to the People's Bank of China branch in Wenzhou survey, the first half of 2011, 89% of households in Wenzhou 59.67% of the individuals and enterprises to participate in private lending - thus see, the official Minjie credit is not an exaggeration. Wenzhou critical, is that involvement of private lending its extreme consequences of the deep, difficult to par with other regions. According to Kim's related report, the balance of private lending in China in mid-2011 up 38%, about 3.8 trillion yuan. According to this estimate, this data is only Chinese banking system, 7% of total loans, is not worth too much panic, the market's extreme reaction is suspected.

    If the control is the cause of rampant usury, then a few more administrative measures to strengthen the hand of government intervention for the economy, is nothing more than harm than good, to bring control of the inertia. Over the years, the allocation of financial resources and economic contribution that non-market mismatch will naturally lead to various types of corrective actions, who simply turned a blind eye is not really the crux of countermeasures.

    Maintenance of stability in emergency treatment, even if temporarily curb the surface of the ulceration, but endogenous disease may gradually change into Gaohuangshu. CD this measure, can be considered for short-term orientation of SMEs in some areas loose; Second, you should re-evaluate the current policy tightening, especially in today under worsening external environment, in particular, should consider lowering the deposit reserve ratio while increasing the portfolio of interest rate ; Finally, the interest rate market and financial sector liberalization, should not delay, but to take drastic measures should be introduced to play - otherwise, even if the immediate suspension of the situation, will not prevent future costs.

Post comment:

◎welcome to give out your point。

Calendar

Comments

Previous

iande Weida Electrical Appliance Tools Co.Ltd. professionally manufacture booster cables , battery clip, tow rope,ratchet tie down.