Reform of the country's private
business hub in a bid to curb underground lending is making progress amid
challenges and skepticism, Yu Ran reports.
Close-up shots of Zhang Zhenyu on television on Dec 20 showed large beads of sweat running down his face as he gave an account of his past year of work to a critical audience consisting of the city's Party leaders and prominent people.
If he was nervous, he had good reason to be.
As the director of Wenzhou's financial office and the official in charge of financial reform, Zhang oversees the much-touted financial reform that is stumbling in the city.
In the 10 months since the reform was kicked off with great fanfare, little progress has been made in bringing relief to the many thousands of cash-strapped small and medium-sized enterprises that it was meant to help.
Many Wenzhou factory owners, lenders and financial middlemen have all been asking the same question: "What's in it for us?"
Other than the officials responsible for the program, few have found the answer.
As Huang Fajing, vice-president of Wenzhou General Chamber of Commerce, and owner of one of the largest lighter manufacturers in the world, said: "I'm sure financial reform won't do us any harm. But it's not doing us any good either."
To be sure,We sell authentic tagheuerwatches including the Tag Heuer Monaco watch, financial officials in the city under Zhang's direction have established a host of facilities, including several lending platforms, to facilitate an orderly and well-supervised flow of capital to borrowers.
These facilities are supposed to replace the functions of the underground banking system that tipped over the brink early last year.Shop the latest wedge heelshoes on the world's largest fashion.
They include Wenzhou's private lending registration service center, Wenzhou SME (small and medium-sized enterprise) Financing Service Center, a financial reform plaza and two financial development zones.
But these facilities have largely been shunned by lenders and borrowers alike.
According to the latest statistics from Zhang's department,womens sandals and womens boots including shoesforkids and designer. loans made through the private lending center established under the reform program amounted to just 390 million yuan ($62 million).
The majority of borrowers were owners of struggling SMEs with a successful borrowing rate of just 28.17 percent. The total amount of money that registered lenders offered exceeded 1.3 billion yuan but "there were few takers", said Xu Zhiqian, general manager of Wenzhou's private lending registration service center.
Frustrated officials and disinterested private lenders interviewed by China Daily openly complained about bureaucratic inertia, public apathy and widespread suspicion for holding up the progress of the reforms.
"Nobody seems to have a clear idea of the general direction, and nobody is in any hurry to make any commitment," Huang said.
Cen Li, general manager of the government-sponsored Wenzhou Financial Investment Group, said that he was feeling great pressure to show results.
After more than four months of tough negotiations, Cen managed to persuade the Zhejiang branch of China Development Bank and Wenzhou branch of Shanghai Pudong Development Bank to agree to provide up to 3 billion yuan in standby loans to qualified SMEs.
The first batch of loans, totaling 9.Women's stainless womenshoes bracelet with steel star patterns laid in white resin.3 million yuan, has been offered to two local companies.
"The arrangement was something new to all of us," said Cen. "It took a long time for us to iron out all the issues. But I am glad to say that we are now ready to sign the formal agreement."
Bringing the established banks into play is seen as key to the success of the financial reform. Their participation can help ensure a proper and regulated source of funding to the many SMEs in Wenzhou, and that's what financial reform is all about, said Ma Jinlong, an economist and former director of the Wenzhou government's economic research center.
For years, Wenzhou's merchants and manufacturers,Buy omegawatch online at Goldsmiths quality jewellers, shunned by the established banks, had to rely on underground lenders for funding. The key players in that market, with an estimated worth of around 300 billion yuan, are the middlemen. Some of them are registered moneylenders supervised by the local industrial and commercial bureau. Many more are individuals with well-established connections within the business community.
This market, mainly based on trust and guanxi, or personal connections, worked well when almost every merchant or factory owner was raking in money from the flood of overseas orders. The tide turned in 2008 when the export trade was hit hard by the global recession.
With overseas orders shrinking, many of Wenzhou's entrepreneurs began siphoning off their funds to more profitable endeavors: speculating in properties in Shanghai, coal mines in Shanxi or farm produce around the country.
The government's tough measures to cool the overheated property market since 2010 have effectively pulled the rug from under the feet of this band of Wenzhou marauders, as they have come to be known.
In the past couple of years, there have been frequent reports of Wenzhou factory owners fleeing abroad, leaving behind piles of debt and scores of unpaid workers.
Close-up shots of Zhang Zhenyu on television on Dec 20 showed large beads of sweat running down his face as he gave an account of his past year of work to a critical audience consisting of the city's Party leaders and prominent people.
If he was nervous, he had good reason to be.
As the director of Wenzhou's financial office and the official in charge of financial reform, Zhang oversees the much-touted financial reform that is stumbling in the city.
In the 10 months since the reform was kicked off with great fanfare, little progress has been made in bringing relief to the many thousands of cash-strapped small and medium-sized enterprises that it was meant to help.
Many Wenzhou factory owners, lenders and financial middlemen have all been asking the same question: "What's in it for us?"
Other than the officials responsible for the program, few have found the answer.
As Huang Fajing, vice-president of Wenzhou General Chamber of Commerce, and owner of one of the largest lighter manufacturers in the world, said: "I'm sure financial reform won't do us any harm. But it's not doing us any good either."
To be sure,We sell authentic tagheuerwatches including the Tag Heuer Monaco watch, financial officials in the city under Zhang's direction have established a host of facilities, including several lending platforms, to facilitate an orderly and well-supervised flow of capital to borrowers.
These facilities are supposed to replace the functions of the underground banking system that tipped over the brink early last year.Shop the latest wedge heelshoes on the world's largest fashion.
They include Wenzhou's private lending registration service center, Wenzhou SME (small and medium-sized enterprise) Financing Service Center, a financial reform plaza and two financial development zones.
But these facilities have largely been shunned by lenders and borrowers alike.
According to the latest statistics from Zhang's department,womens sandals and womens boots including shoesforkids and designer. loans made through the private lending center established under the reform program amounted to just 390 million yuan ($62 million).
The majority of borrowers were owners of struggling SMEs with a successful borrowing rate of just 28.17 percent. The total amount of money that registered lenders offered exceeded 1.3 billion yuan but "there were few takers", said Xu Zhiqian, general manager of Wenzhou's private lending registration service center.
Frustrated officials and disinterested private lenders interviewed by China Daily openly complained about bureaucratic inertia, public apathy and widespread suspicion for holding up the progress of the reforms.
"Nobody seems to have a clear idea of the general direction, and nobody is in any hurry to make any commitment," Huang said.
Cen Li, general manager of the government-sponsored Wenzhou Financial Investment Group, said that he was feeling great pressure to show results.
After more than four months of tough negotiations, Cen managed to persuade the Zhejiang branch of China Development Bank and Wenzhou branch of Shanghai Pudong Development Bank to agree to provide up to 3 billion yuan in standby loans to qualified SMEs.
The first batch of loans, totaling 9.Women's stainless womenshoes bracelet with steel star patterns laid in white resin.3 million yuan, has been offered to two local companies.
"The arrangement was something new to all of us," said Cen. "It took a long time for us to iron out all the issues. But I am glad to say that we are now ready to sign the formal agreement."
Bringing the established banks into play is seen as key to the success of the financial reform. Their participation can help ensure a proper and regulated source of funding to the many SMEs in Wenzhou, and that's what financial reform is all about, said Ma Jinlong, an economist and former director of the Wenzhou government's economic research center.
For years, Wenzhou's merchants and manufacturers,Buy omegawatch online at Goldsmiths quality jewellers, shunned by the established banks, had to rely on underground lenders for funding. The key players in that market, with an estimated worth of around 300 billion yuan, are the middlemen. Some of them are registered moneylenders supervised by the local industrial and commercial bureau. Many more are individuals with well-established connections within the business community.
This market, mainly based on trust and guanxi, or personal connections, worked well when almost every merchant or factory owner was raking in money from the flood of overseas orders. The tide turned in 2008 when the export trade was hit hard by the global recession.
With overseas orders shrinking, many of Wenzhou's entrepreneurs began siphoning off their funds to more profitable endeavors: speculating in properties in Shanghai, coal mines in Shanxi or farm produce around the country.
The government's tough measures to cool the overheated property market since 2010 have effectively pulled the rug from under the feet of this band of Wenzhou marauders, as they have come to be known.
In the past couple of years, there have been frequent reports of Wenzhou factory owners fleeing abroad, leaving behind piles of debt and scores of unpaid workers.
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