Trillion Wenzhou Capital Out Of The Trap: Industrial Pain &Nbsp; Sparse Than Blocking

Mastermind with painstaking effort, profit Only 1% - 3%; while engaging in private credit, the monthly interest rate can reach 6 to 8 points. Which is more profitable, but the capital sensitive Wenzhou people are very clear.

The development of Wenzhou's capital can be said to be a microcosm of the development of China's private capital. Since the beginning of reform and opening up in 1978, China's social and economic development has shown an irrevocable trend. In a great country with more than a billion people, the planned economic system has been gradually disintegrating, and the market economy system has been transformed with an irreversible trend. Today, Wenzhou's capital is huge and huge.

Some experts say that after more than 30 years of accumulation, Wenzhou's private floating capital can reach about one trillion yuan, and this huge amount of capital is looking for the next engine to achieve its true value.

Where is the way?

A search for cooperation projects came from Wenzhou The SME Development Association issued: "Wenzhou capital seeks domestic consumption, natural resources, health care, alternative energy and services, biotechnology or biomedicine." In the investment stage, we tend to invest in the middle and later stages, and the net profit of the investment company should be RMB 100 million yuan or more. The typical transaction size is $20 million - $100 million. On the scale of sales of more than 1 billion yuan, there is financing needs. financing The amount is above 100 million yuan. "

Zhou Dewen, President of Wenzhou SME Development Association, told the China enterprise news that Wenzhou capital mentioned here refers to Wenzhou's private capital. At present, the capital flow of Wenzhou folk is between 800 billion yuan and 1 trillion yuan.

Bai Pengming, a macroeconomic researcher at China investment advisor, said in an interview with the China enterprise daily that there are many modes of private capital operation. In the current way of private investment in Wenzhou, it includes private lending, investment in precious metals and mining investment. Overall, the overall operation of private capital investment is more active.

In the mountainous private capital camp, the trend of Wenzhou's capital can be called a wind vane for private capital investment. Its foresight plays a leading role in private capital.

In recent years, from the real estate, fried coal, fried gold, to stir fry, stir fry and fry, reflects the flow of capital in Wenzhou.

At present, private capital is no longer a "hot money" in general sense. Zhou Dewen said that they have formed various "industrial investment consortium". These grass-roots investment groups with hot money as the main capital are crowned with dozens of titles such as "Wenzhou real estate group", "Mining Group" and "cotton group" and so on. It can be said that where there are opportunities for short selling and huge profits, there is Wenzhou's private capital figure.

However, in recent years, Wenzhou's private capital with the spirit of reclaiming wasteland has repeatedly failed.

Overseas, Wenzhou capital has been invested in real estate such as Dubai, and Russia's gray customs clearance has also greatly frustrated Wenzhou's capital. At home, Shanxi coal mine made Wenzhou's capital investment in the coal mine as deep as possible. With the implementation of the domestic real estate regulation policy, the Wenzhou Housing Group also suffered a blow.

"Wenzhou capital is very effective." Zhou Dewen said that with the tightening of money, a large number of capital flows to private lending, the monthly interest rate has reached 6 points to 8 points. Last year it was 80 billion yuan, which has expanded to 120 billion yuan this year, and this part of the capital is still expanding. "Lost in the East", has always been active on the economic stage. {page_break}

Sparse and overwhelming

Why is Wenzhou capital, which earns the first barrel of gold from manufacturing, not keen on investing in industry? In the interview, experts, scholars, enterprises and so on all indicated that now the industry, especially the labor-intensive industry, has a very low profit and far from real estate, stock and private credit.

For the production of Bobbi dolls, the price of a Bobbi doll in the US market is US $10, the FOB price in China is US $2, and the $1 is $1 for management and transportation and $0.65 for us. The remaining $0.35 is the gross margin of OEM.

"Now the profit of manufacturing industry is only 1% to 3%, and Wenzhou capital with profit driven nature has come out." Zhou Dewen told reporters that a large number of Wenzhou capital fled the manufacturing industry without profit.

With the increasing pressure of survival, a large number of small and medium-sized enterprises in Wenzhou have to face transformation. The large amount of private capital accumulated in their hands is like a headless fly.

"Now many Wenzhou bosses meet and ask what good projects they can invest recently." Huang Weijian, chairman of Wenzhou private capital investment service center, said that most of these bosses hold tens of millions of dollars, and they are eager to find a way out for these funds. .

Bai Peng Ming analysis said that because of the strong willingness of private capital to pursue capital excess earnings, the financing costs of some SMEs were high, and the risk of SMEs increased. Moreover, the government's inadequate guidance on this policy had a certain impact on the development of China's real economy. However, due to the flexibility and timeliness of private capital, it also plays a certain role in financing and balancing the economic development. Therefore, under the premise of lack of government regulation, the advantages and disadvantages of private capital operation are quite similar.

In fact, for the development of private economy, the state has issued a series of documents and regulations, but the reality is that these small and medium-sized enterprises are outside the glass door. The analysis of Bai Peng Ming thinks that if the private capital is moved from behind the scenes to the stage, private capital can be truly effective. The government should formulate relevant laws and regulations to guide, rather than blindly suppress and ignore the role of private capital.

"Wenzhou people used to do a lot of industry, like to invest in things that can be seen and touched." Zhou Dewen said, but now the idea has changed. In the past, Wenzhou people did not buy stocks or sell futures, but now they began to invest in the stock market. They suddenly fell into about 100000000000. They did not go public. They had serious sense of small farmers and family values. They felt that they were not short of money and did not need to go public. But now more than 200 companies are actively preparing to go public. Now Wenzhou people have a saying that "Qian Wanqian and money making money (capital operation) is the highest level", which shows that Wenzhou people have changed from pure product management to the current product operation and capital operation.

"Private capital does not invest in the real economy, and the speculation in virtual economy or asset prices is first restricted by market entry." Li Yining, deputy director of the Economic Committee of the CPPCC National Committee and President of the Private Economy Research Institute of Peking University, said before that. {page_break}

Industrial pains

It has brought a glimmer of dawn to the confused capital of Wenzhou. The State Council's "opinions on encouraging and guiding the healthy development of private investment", known as the "new 36 item", clearly stated that private capital should be encouraged and guided to enter industries and areas where laws and regulations did not explicitly prohibit access, such as basic industries and infrastructure, municipal public utilities and policy oriented housing construction, social undertakings, financial services, commerce and circulation, and defense science and technology industries, and create a fair competition and equal access to the market environment. We should encourage and guide private capital restructuring and participation in the reform of state-owned enterprises, actively participate in international competition, and promote private enterprises to strengthen their independent innovation and transformation and upgrading.

But after encountering the cruelty of reality, Wenzhou capital had to start from reality. Zhou Dewen told reporters that many areas of private economy can not enter. Today, private capital, which has been suppressed, can only be better developed by the accumulation of small capital. Therefore, they have issued such Advisory notice this time. Investment can be carried out in all fields, mainly aiming at two new fields: first, entering the financial field, and the small loan company has 16 places in Wenzhou. Everyone is scramble, including the reform of local commercial banks. The capital of Wenzhou bank's transformation is all private, and the capital that is scattered among the people is gathered together, which in turn helps traditional industries and develop good enterprises. This is a relatively obvious direction of transformation; the two is to invest in emerging industries, such as photovoltaic, wind power and other fields. These two areas are currently the main direction of capital investment in Wenzhou.

No matter where to invest, in Zhou Dewen's view, the best foothold is industry.

Bai Pengming told reporters that from the perspective of the law of capital development in emerging markets, speculative earnings in the early stage of capital operation are inevitable rules of capital development. From tangible capital (assets) to long-term high returns from project investment, from capital market operation to real economy investment, it is a manifestation of rational return of capital operation. For China's macro-economy, private capital actively seeking for real economic projects will play a positive role in social and economic development, and will help accelerate the pace of upgrading China's industrial structure. Private capital will become a strong driving force for the sustainable development of China's economy.

Bai Pengming said that from the perspective of upgrading the industrial structure, China's coastal provinces are experiencing pains in the industrial structure. Some enterprises hope to get rid of the shackles of low profit margins through industrial transformation. However, due to the lack of investment funds, industrial upgrading has become a burden for the development of enterprises, while private capital seeking investment projects with high growth space will effectively accelerate industrial upgrading; from the overall macroeconomic stability of China, the "speculative" funds will be precipitated to the real economy, which will reduce the instability of domestic economic development.

So how to guide private capital to invest in industries encouraged by the state? Bai Pengming believes that the formulation of relevant regulations to guide the development of private capital should not be stipulated in the same way as financial institutions. We must take into account the fundamental principles of higher capital gains of private capital. Otherwise, the government's regulation and control measures will be resisted by private capital. In addition, the capital among the people can not be simply included in the financial supervision regulations, and independent regulatory bodies should be set up for private capital to carry out careful supervision of the industry so as to achieve the guiding effect.