I read an issue of "Old Liang's World Outlook" and talked about why Wenzhou bosses run away so much. Lao Liang's analysis really hit the nail on the head.

In Wenzhou, the amount of private capital is very large, that is, the capital active in Wenzhou is around 300 billion. We say money is a tiger. He must eat meat. He won't die in the bank. Therefore, Wenzhou private capital in real estate speculation or subsidies to some enterprises, through usury or underground banks in various ways to lend money to people in need.

Small and medium-sized enterprises really need this money. We know that small and medium-sized enterprises need all kinds of guarantees if they want to borrow from state-owned banks. The loans of state-owned enterprises can be secured by fixed assets, but the fixed assets of small and medium-sized enterprises can not be guaranteed or guaranteed for a long time.

Many small and medium-sized enterprises sometimes need a sum of money for turnover. Banks can't, they can only find private capital and get money through acquaintances or intermediaries. But one thing, the lower the threshold, the higher the cost. If you borrow from a bank, the loan interest rate may be around 10%, which may double underground.

If the enterprise is not well managed and can't pay back the money, then you can only borrow a sum of money from another company to pay back the money, which forms a vicious circle, and many enterprises die in this cycle.

We often tell a joke about which Wenzhou boss has run away again. This is not only a joke, but also a fact. According to statistics, from April 20 1 1, about 40 business owners disappeared in the whole running tide. Many private capitals in Wenzhou are circulating in the market, but the entities that use money are not so profitable. Once the capital chain breaks, they can only run away.

This is the problem. If private capital is not allowed to have a good way out, there will definitely be huge hidden dangers. And now some small and medium-sized enterprises are not short of money, especially need money, but they don't have a good channel. Therefore, it is inevitable for private capital to enter the banking industry and establish private banks.