1. What are the reasons for the rapid development of Henan’s investment guarantee industry?

From 2009 to 2010, the number of guarantee companies in our province increased explosively, reaching 1,640. What is the reason for the rapid development of the guarantee industry? Industry insiders almost unanimously agree: there is a market and demand.

1. Alleviating the financing difficulties of small and medium-sized enterprises

Just look at the crazy usury market to see how difficult it is for small and medium-sized enterprises to obtain financing. "The financing cost of small and medium-sized enterprises in the Pearl River Delta is generally above 5 cents (referring to monthly interest, the same below), and there are no lower than 4 cents in the Yangtze River Delta. Many small and medium-sized enterprises are in the dilemma of waiting to die without financing. If they finance, they will undoubtedly be in trouble. Bureau.” (Dahe Newspaper, “Ten billion guaranteed funds are “wandering””). The average monthly interest rate for private investment guarantees in our province is 1.5 cents, which is within the national legal interest rate range for private lending, which to a certain extent alleviates the financing difficulties of small and medium-sized enterprises.

2. Create a relatively stable investment channel for private capital.

Look at the investment market in front of the Chinese people. Bank: The annual interest rate for one-year time deposits is 3.5%, while the price level index (CPI) was once as high as 6.5%. People have been "enjoying" negative interest rates for a long time, and banks' service charge items are increasing day by day. Stock market: August 8, 2011, “China’s stock market suffered its largest market value loss of nearly 1.3 trillion yuan, equivalent to the country’s 1.3 billion people, with each person losing 1,000 yuan a day!” (Dahe Newspaper, “Panic Spreads” on August 9, 2011 Globally, stock markets encountered “Black Monday”). Futures, foreign exchange, gold: any investment involving "margin" trading can make you lose all your money. Insurance: The function of insurance products was originally to prevent risks, but now it has been distorted into "financial management products" to mislead customers. The salesman's slogan is: "Higher interest than bank interest!" It is through these so-called "investment" channels that people's money A steady stream of money flows into the pockets of a few people, causing the gap between rich and poor to widen.

In 2007, the annual salary of the chairman and CEO of a well-known domestic insurance company was 66.16 million yuan, causing public outcry. “The GEM raised more than 100 billion yuan” and “created nearly a thousand billionaires, but it was unable to provide Chinese entrepreneurs with a source of funds to realize their dreams.” (Dahe News, "Three reasons why a dragon on the GEM turned into a flea" "Big reason") "Ordinary investors are deeply trapped." (Dahe News "The capital market cannot become a machine for making wealth")

Private investment guarantees are relatively stable. Although the benefits are high, they do not exceed legal requirements and there are certain risks, which should be reasonable.

3. Alleviating the problem of employment difficulties for young people

According to Dahe News, our province guarantees 35,000 employees. As far as I know, many large Henan investment guarantees also handle social insurance for their employees. Most of the employees of the guarantee company are college students. They are well-trained, enthusiastic and polite, and very cute!

4. Private investment guarantee company bosses can make money

Guarantee company bosses are the core force in the development of the guarantee industry, and many of them are successful private entrepreneurs. The purpose of starting a company is to make money. Who would do a business that loses money?

5. Regulate the private lending market

News from various places shows that usury is rampant in the private lending market, with monthly interest rates of 6 cents, 7 cents or even more than 1 cent! The boss's "escape" was forced by loan sharks, not by legal private investment guarantees. The interest rate for legal private investment guarantees shall not exceed four times the bank loan interest rate according to law. In fact, it regulates the private lending market. The more legal private investment guarantees develop, the smaller the market space for loan sharking becomes.

6. Narrow the gap between the rich and the poor in society

Private investment guarantees are mostly invested by poor people, mostly the elderly. They have saved a lifetime of pension money, ranging from hundreds of thousands to tens of thousands. One hundred thousand, hoping to have a safe and high-yield investment channel. Most of the people who borrow money are wealthy people. They are private entrepreneurs worth millions, tens of millions, or hundreds of millions. They borrow money at a relatively high cost to maintain the normal operation of their enterprises. Both get what they need and actually narrow the gap between rich and poor.

Private investment guarantee meets the needs of economic development and benefits the country and the people. This is the fundamental reason for its rapid development.

2. What is the government’s direction in “rectifying” the guarantee industry?

On December 3, 2010, the article "Henan Guarantee Industry Must Standardize Development" in Dahe News revealed that "the reporter learned from the Small and Medium Enterprises Service Bureau of the Provincial Department of Industry and Information Technology that from December 1, 2010, to 2012 On March 31, the province will suspend the establishment and registration of guarantee institutions.” An article in Dahe News on December 10, 2010 titled “Henan Guarantee Reshuffle” further revealed: “The Provincial Department of Industry and Information Technology regulates guarantee institutions. The deadline for re-confirmation of the rectification situation is the end of 2011.”

That is to say, it was not until June 11, 2011 that the Provincial Department of Industry and Information Technology announced the 246 guarantee institutions in the province that had “passed the preliminary review”. The list includes 104 in Zhengzhou area. Most of the names on the list are unknown, and industry insiders say they specialize in bancassurance. Later, it was discovered that there were also people on the list who had obtained registration certificates or even business licenses after December 1, 2010.

It turns out that the government has no say whatsoever, and the government’s credibility collapsed instantly!

The Provincial Department of Industry and Information Technology also announced five conditions for the "Qualification of Financing Guarantee Institutions". Article 3: Since last year, it has carried out financing guarantee business with banks of more than 100 million yuan or bank credit of more than 100 million yuan. I murmured in my heart: This is not a qualification! Dare to do 100 million yuan in bancassurance business without qualifications. Doesn't this encourage illegal business?

On July 28, 2011, Dahe News published an article, "Ten billions of guaranteed funds are on a hesitant road to transfer," with the subtitle "Through this rectification, about 1,300 guarantee companies will be washed away, with an elimination rate of nearly 80%. %.” The article said: Financing guarantee companies will take “bancassurance” as their core business. There are two directions for the transformation of a large number of guarantee companies. "One is to return to the industrial field" and that is to withdraw from the guarantee industry. "Another direction of transformation is private equity investment funds related to the guarantee field." I also noticed that since June 10, 2012 (one day before the Ministry of Industry and Information Technology announced the preliminary list of qualified candidates), Dahe News reported on There are suddenly more articles about private equity.

In September 2011, a guarantee company finally obtained its business license, and the issuance date was August 8, 2011. Then, dozens of guarantee companies published "letters of commitment" in the form of advertisements in the media. On September 15, the Dahe Daily article "Behind the High-profile "Commitments" of Henan's Guarantee Industry" said: "The Provincial Department of Industry and Information Technology requires the first batch of guarantee companies that have passed the preliminary review to obtain business licenses to make public commitments in the media in accordance with the above content, and the template is also Provided by the Department of Industry and Information Technology. "The private guarantee financial management business that the original guarantee company mainly engaged in will definitely not be able to do so." "Cooperating with banks is the main direction for the next step." Industry insiders said that companies that have obtained business licenses have been clearly informed by the Provincial Department of Industry and Information Technology that they are not allowed to engage in private investment guarantee business. The Department of Industry and Information Technology has also installed Camera.

Only now do we understand: The government’s goal of “rectifying” the guarantee industry is to block private investment guarantees! I thought the government was going to crack down on usury and illegal fund-raising, but it turned out that it didn't crack down on them at all. Instead, it first cracked down on legal private investment guarantees.

3. What is the legal basis for private investment guarantee?

The legal basis for private investment guarantees is the "Guarantee Law of the People's Republic of China". The "Guarantee Law" was passed by the Standing Committee of the National People's Congress on June 30, 1995. On the same day, President Jiang Zemin of the People's Republic of China issued a presidential order, which came into effect on October 1, 1995. There were no guarantee companies at that time, but the civil act of guarantee had long existed and was protected by special national laws.

Article 7 of the "Guarantee Law": "Legal persons, other organizations or citizens with the ability to repay debts on their behalf may serve as guarantors." The Supreme People's Court's "On the Application of the Guarantee Law of the People's Republic of China and the State" Interpretation of Several Issues" Article 15: "Other organizations stipulated in Article 7 of the Guarantee Law include: (1) Sole proprietorships and partnerships that are registered and received business licenses in accordance with the law." These provisions have been "registered and received a business license in accordance with the law." The guarantee qualification of the guarantee company provides a legal basis. The government's attempts to use "registration certificates" and "licenses" to deprive guarantee companies of their legal guarantee qualifications are illegal and invalid.

Article 3 of the "Guarantee Law": "Guarantee activities shall follow the principles of equality, voluntariness, fairness, and good faith." Article 11: "No unit or individual may force a bank or other financial institution or enterprise to Provide guarantees for others; banks and other financial institutions or enterprises have the right to refuse to force them to provide guarantees for others. "The government threatens to use a business license to force a guarantee company to provide a bank guarantee or obtain a bank credit of 100 million yuan. Forcing the guarantee company to make a "letter of commitment" in the media is an illegal act that grossly interferes with the company's autonomy in business operations. The guarantee company has the right to refuse!

Article 21 of the "Guarantee Law": "The scope of the guarantee includes the principal creditor's rights and interest, liquidated damages, damages and costs of realizing the creditor's rights." Provides legal guidance for the business scope of guarantee companies in accordance with. Article 6 of the "Several Opinions of the Supreme People's Court on the Trial of Loan Cases by the People's Courts" on August 13, 1991: "The interest rate for private loans may be appropriately higher than the interest rate of banks...but the maximum shall not exceed four times the interest rate of similar loans from banks." "When this limit is exceeded, the excess interest will not be protected." This provision draws a clear line between legal private lending and usury. Article 5 of the "Guarantee Law": "The guarantee contract is a subsidiary contract of the main contract. The main contract is invalid and the guarantee contract is invalid." According to this provision, a guarantee company providing guarantee for a legal private loan contract is also valid and protected by law. of. The government's actions to block legal private investment guarantees are illegal and invalid.

It must be noted: In our country, it must be approved by the Standing Committee of the National People's Congress and signed by the chief executive before it can become a law. Regulations formulated by government departments must not violate or conflict with the law, otherwise they will be illegal and invalid. Not only the people must abide by the law, but the government should abide by it as well.

4. What is the main business of a financing guarantee company?

Guobanfa (2011) No. 30 document "Opinions on Promoting the Standardized Development of the Financing Guarantee Industry" on June 21, 2011:

(3) Financing guarantee institutions must In accordance with the principles of safety, liquidity and profitability, we insist on taking financing guarantee business as the core business...

(4) Encourage financing guarantee institutions in the county to strengthen their support to small and medium-sized enterprises and "agriculture, rural areas and farmers" Financing guarantee business, actively encourage private capital and foreign capital to enter the financing guarantee industry in accordance with the law...

(7) Banking financial institutions must be urged to strengthen cooperation with financing guarantee institutions... to build an equal, mutually beneficial, * **Winning cooperation model.

There is no sentence in this document that stipulates that guarantee companies can only "finance" from banks and are not allowed to raise funds from the private sector. The guarantee industry was originally developed on the basis of private investment guarantees. The word "financing" is to distinguish it from the "policy" of government-run guarantee companies. Civil insurance and bancassurance are the main businesses. The amount of civil insurance and bank insurance provided by a guarantee company belongs to the business autonomy of the enterprise and is decided by the enterprise independently, and the government has no right to interfere. If the government forces guarantee companies to only provide bank insurance and not civil insurance, it will not only be illegal, but also illegal.

5. Will the development of private investment guarantees lead to bank closures?

This may be a problem that the government is worried about, and it may also be a reason why the government wants to ban private investment guarantees. However, such a situation is unlikely to occur.

1. Private lending cannot replace bank lending

Private lending is only a supplement to bank lending, it cannot replace bank lending. Financing customers turn to private loans when they cannot borrow money from banks. Everyone knows that bank loan interest rates are low. If you can borrow money from a bank, who will go to private loans? Banks should use their own advantages to provide customers with efficient, convenient and fast services and engage in healthy competition with the guarantee industry. We cannot rely on the government to block private investment guarantees (some people in the insurance industry also have this mentality) and maintain their financial monopoly.

2. The source of funds for guarantee business is limited

As of August 2011, the balance of RMB deposits in my country was 786,700 yuan. It is a joke to say that all the money will be used as investment guarantee. First of all, only residents' deposits can be used as guarantees for private investment, and residents' deposits only account for a part of the total RMB deposits. Residents' deposits can only be used as investment guarantees, but only as part of their "spare money." Due to the risky nature of investment guarantees, not everyone will do it. The guarantee industry is a mixed bag, and not everyone can see clearly. Based on these factors, the actual money flowing into private investment guarantees is limited.

3. The market for guarantee business is also limited

Financing customers for private investment guarantees are limited to productive private small and medium-sized enterprises. Moreover, not every financing customer can get money when they come to the door, only high-quality small and medium-sized enterprises can get money. This is because guarantee companies are almost all private enterprises. Faced with huge compensation risks, the screening of financing customers is very strict, and the elimination rate is very high. The market economy is about survival of the fittest. Only in this way can the healthy, healthy and sustainable development of the private economy be maintained.

4. The guarantee business process cannot be separated from banks

First of all, the registered capital of the guarantee company is deposited in the bank. Secondly, capital transactions between investment and financing customers go through banks. Thirdly, the capital turnover of financing customers also goes through banks, just like bank loan customers.

In short, the government’s worries are unnecessary.

6. Is there a relationship between the guarantee industry and private equity investment?

The two have nothing to do with each other. The first thing that brings them together is the media, which seems to have the shadow of the government (see the fourth paragraph of the second part of this article).

On July 15, 2011, Dahe Newspaper's "Investment, Running with "Private Equity"" gave an objective and comprehensive explanation of private equity. The key points are excerpted as follows:

Raising methods: "The biggest feature of private equity is that it is not public." "In fact, it refers to non-public promotion and private fundraising from specific investors."

"Partnership" private equity: "Professional management institutions or individuals serve as general partners and are responsible for the operation and management of the partnership." "Management fees are charged according to a certain proportion of the total fund amount every year," and the excess portion of the scheduled income is "Proportional sharing", such as 20%. "The investor serves as a limited partner and can enjoy partnership income according to the partnership agreement."

Source of income: "Equity investment in unlisted companies," "Finally, through the company's listing, mergers and acquisitions, management Repurchase and other methods, selling the equity held to obtain profits. "

Risk: "Not every investment project can be successfully exited as scheduled. "Private equity funds may take over the mess of the company." "The first is the professional ability and moral hazard of the investment manager, and the second is the risk of the investment project." The invested company may "experience a decline in performance, stop production or even go bankrupt."

Whose "game": " Private equity itself is raised for specific groups, and it is not an investment method that all ordinary people can participate in. "Taking "Dinghui" (the name of the private equity fund) as an example, "the individual investment requirement reaches the number of investors for "partnership private equity". No more than 50 people.

”

The difference from illegal fund-raising: “According to the judgment of the Supreme Court of my country on illegal fund-raising activities”, “There are two main definitions of private equity fund-raising activities and illegal fund-raising activities. One is the object of fundraising, and private equity It is aimed at specific targets." "The characteristic of illegal fund-raising is that anyone can do it as long as they take the money. "The second is the limit on the number of people. ...For private placement of limited partnerships, the number of people cannot exceed 50." In illegal fund-raising, as long as someone takes money, the more people participating, the better. “Another thing to pay special attention to is whether there is a guarantee or a promise of income. Private equity funds have no guarantees or income commitments, which are the only magic weapons for illegal fund-raising to survive. ”

After reading this article, my conclusion is: 1. Private equity is not a game for ordinary people. 2. Once private equity “crosses the line”, it will be suspected of illegal fund-raising. 3. Direct guarantee companies and ordinary people to private equity , there is a risk of "inducing prostitution"

7. What are the consequences of banning private investment guarantees?

1. Exacerbating the financing difficulties of small and medium-sized enterprises

Banning private investment guarantees is equivalent to cutting off the legal channels for private capital to connect with the private economy. The rise of private investment guarantees was originally intended to make up for the shortage of bank loans. After the ban on private investment guarantees, everyone queued up for loans at banks, making it difficult to obtain financing. The intensification can be imagined. On June 30, 2011, Dahe News reported an article titled "Henan Guarantee Prepares for Bancassurance", which quoted industry insiders as saying: "Since the last increase in the deposit reserve ratio, bank loans have been extremely tight, and even approved housing loans have become extremely tight. Since there is no quota, it has been difficult to lend money. In the context of the current monetary tightening, it is even more difficult for guarantee companies to obtain financing from banks. "Because they can't borrow money, more bosses will jump off the building.

2. Usury and illegal fund-raising are more prevalent

After the legal private investment guarantee channels are blocked, the private sector Where does the capital flow? Back to the bank, waiting to be eaten by CPI? The profit-seeking nature of capital makes it more likely that there will be more bosses jumping out of the bank under the threat of loan sharking. Under the temptation of illegal fund-raising, more people will be fooled. In fact, after Dahe News published a series of "private equity" articles, there have been more cases of illegal fund-raising and fraud in the name of "private equity".

3. Tens of thousands of young people are unemployed again

Guarantee companies are developed on the basis of private investment guarantees. Private investment guarantees are not allowed. Of course, private financing does not require people, so there must be a large number of guarantee companies. Layoffs. A large number of guarantee companies that specialize in bancassurance are unable to survive and will have to close down. Tens of thousands of outstanding young people will once again live on the streets and embark on a difficult job search.

4. Private guarantee companies. It is difficult to survive

The article "Henan Guarantee Prepares for Bancassurance" on July 4, 2011 in Dahe News quoted industry insiders as saying: "Compared with the surging private capital pursuing high returns against the backdrop of inflation, bancassurance Financing not only has speed issues, but more importantly, it will affect the company's business scale, which will inevitably affect the guarantee company's profits. "You can't make money by opening a company, and the only result is to close down.

The government requires guarantee companies to specialize in bancassurance, which is actually transferring the bank's risks to guarantee companies. News from Dahe News on September 14, 2011 : Private lending collapsed in Anxi, Fujian. A village director owed more than 300 million yuan and fled. Anxi Industrial and Commercial Bank involved more than 50 million yuan. If the more than 50 million yuan was guaranteed by a private guarantee company, this guarantee company would probably collapse. .

In this case, a large number of guarantee companies will withdraw from the stage of history (or be driven out of the stage of history by the government), leaving only a few so-called "policy" guarantee companies funded by the government. ". Blocking private investment guarantees is not about development, but the destruction of the guarantee industry!

8. What do people expect from the government?

The answer is only one sentence: support legal investment guarantees, Crack down on loan sharking and illegal fund-raising.

1. What are legal investment guarantees, loan sharking and illegal fund-raising?

Legal investment guarantee: It is a guarantee company that has registered and obtained a business license in accordance with the law. Creditors provide guarantees, including private loan guarantees and bank loan guarantees.

Usury: The act of institutions or individuals using their own funds or raising funds to issue loans at an interest rate that is more than four times the bank's similar loan interest rate. . Most of the victims are private enterprise owners.

Illegal fund-raising: On December 22, 2010, Article 1 of the Supreme People’s Court’s “Judicial Interpretation on Illegal Fund-raising”: “Violation of national financial management laws and regulations. The behavior of the public (including units and individuals) absorbing funds. "The essence of false financing is to use deceptive means to absorb funds. The victims are mostly ordinary people.

2. The difference between legal investment guarantee, loan sharking and illegal fund-raising

The difference between loan sharking and loan sharking: whether the interest rate More than four times the bank's similar loan interest rate. Less than four times is a legal investment guarantee, and more than four times is a usury.

The difference between it and illegal fund-raising: whether the guarantee company can only provide funds to the creditors of the loan contract. Guarantee cannot absorb funds. Absorbing funds is illegal fundraising.

Criminals deliberately confuse the difference between the two to deceive the people and obtain illegal benefits. If the government confuses the difference between the two, it may hit the wrong place. .

3. How to support legal investment guarantees

From the 2nd to the 4th, Premier Wen Jiabao went to Wenzhou to investigate the private lending situation. He emphasized that supporting and developing small and medium-sized enterprises is of overall and strategic importance. It is necessary to strengthen the supervision of private lending, guide its sunny and standardized development, and play its positive role. $2, the State Council executive meeting issued many policies and measures to support the development of small and medium-sized enterprises. Financial support (6): "Promote the healthy development of private lending on the basis of standardized management and risk prevention. It must be carried out in accordance with market principles and reduce administrative intervention."

Legitimate private investment guarantees are the sunshine of private lending We hope that the provincial government will immediately stop blocking and dismantle the cameras. The more than 1,640 guarantee company business licenses issued by the government are the confirmation of the guarantee company's guarantee qualifications. is legally binding. "Registration certificate" and "permit" duplicate qualifications, which is legally contradictory and unworkable in practice. It serves no purpose other than to breed corruption.

The Henan Provincial Government’s regulations on the registered capital of guarantee companies are correct because it can enhance the guarantee company’s ability to resist risks. We hope the government will implement it as soon as possible. For guarantee companies whose registered capital meets government requirements, a new business license should be issued as soon as possible to facilitate the guarantee company's normal business operations. If the requirements are not met, the deadline will be met; if the deadline is exceeded, new business will be stopped, and the business license will be revoked by the industrial and commercial department when the old business is completed.

4. How to crack down on loan sharking and illegal fund-raising

This refers to the phenomenon of engaging in loan sharking and illegal fund-raising under the banner of guarantee companies.

As the competent authority of the guarantee industry, the Henan Provincial Department of Industry and Information Technology is mainly responsible for formulating policies. The Provincial Department of Industry and Information Technology should shift its main focus to formulating detailed regulations for the supervision of the guarantee industry as soon as possible. Supervisory rules should include conditions for the establishment and cancellation of guarantee companies, capital injection requirements, compensation reserve ratios, definitions of usury and illegal fund-raising, and penalties for various violations of laws and regulations (warnings, time limits for rectification, fines, suspension of business for rectification, and revocation of business licenses), Make clear provisions respectively. In formulating these regulatory rules, opinions from all walks of life and guarantee institutions must be widely solicited, and "working behind closed doors" must be avoided

The industrial and commercial departments at all levels are the executive agencies for implementing these regulatory rules. The industrial and commercial departments shall issue and revoke business licenses and investigate and deal with various illegal activities in accordance with the provisions of this regulatory rule. The public should be encouraged to report, and if the reports are true, there will be rewards.

As for loan sharking, once confirmed, the business will be immediately suspended for rectification, and penalties will be imposed until the business license is revoked. If the interest exceeds the national regulations, the financier may refuse to pay. For violent debt collectors, the public security organs will intervene and severely punish them in accordance with the law. For illegal fund-raising, once verified, the public security organs immediately intervene, control the person in charge of the company, order the return of investors' principal, revoke the business license, and pursue legal responsibility. Guarantees exceeding the limit (capital injection of 100 million, single guarantee balance exceeding 10 million) are strictly prohibited and will be punished once verified. If the government really does this, I don’t believe the world is not peaceful!

Corruption and inaction are two of the most serious problems in some government regulatory agencies. The people of the province will wait and see how the government will act on the issue of guarantee supervision!

9. Author's Statement

Private investment guarantee is a form of private investment guarantee that the people of Henan (specifically, Henan Bangcheng Guarantee Company) adapts to the needs of economic development. An innovation based on the Guarantee Law and related laws is the pride of the people of Henan. It is hoped that the Henan Provincial Government can also set an example for the whole country in rectifying the guarantee industry.

Because it is a new thing, the government, media and the public still have some vague understanding of the guarantee industry. In order to provide reference for government decision-making and communicate with all sectors of society, I will send this article to relevant government heads, distribute it to major guarantee companies, and post it on the Internet. All walks of life are welcome to circulate, forward, and download, and criticism and advice are welcome!

Article source: Internet collection and compilation Author: Li Xiakun China Life Economist Statement: The articles, data and other contents reproduced on this site are purely the author's personal opinions and are for investors' reference only and do not constitute investment advice. Investors operate accordingly at their own risk.

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