Chapter 10 Chapter Three

Wenzhou's decades-long legend is fascinating because of its ups and downs.The ups and downs are heroic magnificence created by the current situation, while the downswings are tragic and heroic. All kinds of financial means have long been pervasive like weeds.These capitals wander on the edge of the law and accidentally step into the minefield. Unlimited ability combined with unlimited desire can result in either a great victory or a catastrophe. Looking back at the history of the development of China's private financial industry, Wenzhou in 1984 had an indelible stroke, not to mention a lot of color, but it was of pioneering significance.

On September 30th, the Cangnan Money Bank, the wooden signboard "Fangxing Bank" with red letters on a white background, was erected in the Fang family's old house at No. 29 Hengjie. It is said that this is one month earlier than the opening of the Wenzhou branch of the People's Bank of China. This is the first financial institution in mainland China to be listed and operated by a private company. On the opening day, Fang Peilin, the founder of the bank, posted several stacks of handwritten loan interest rate tables in the streets and alleys of the bank, and a small town with a population of less than 30,000 people knew about Fangxing Bank within a day.

Long-term deposits: 1.2% monthly interest, settled over 3 months. Temporary deposit: 1% monthly interest, deposit and withdrawal at any time. Loans: 2% per month, subject to availability. Obviously, Qianzhuang has advantages over banks in all aspects.For example, the service hours of banks and credit unions are the statutory 8-hour working hours, while Fang Peilin's bank provides services 24 hours a day. Before the preparation of the bank, Fang Peilin, a young man who worked as a mail room worker in a state-run hospital, searched for central documents and found this sentence in the (84) No. 1 document of the Central Committee of the Communist Party of China: Encourage farmers to raise funds to start various businesses, especially development-oriented businesses ..."If fund-raising is legal, then private interest with the same nature as dividends should be legal." Therefore, he found a policy basis for his bank plan.What is even more impressive is that at that time, Fang Peilin's management adopted a board of directors system.Qianzhuang invests and raises funds, with an amount of 1,000 yuan per share. There is no limit to individual shares, and the total number of shares is 100 shares, totaling 100,000 yuan.The board of directors and chairman are elected by the shareholders, and the chairman appoints a manager to preside over the daily work.

When submitting an application to the local township government, Huang Deyu, secretary of the township party committee, gave great support: "Don't engage in a joint-stock system. If the shareholders' ideas are not unified, it is easy to cause problems. You can do it alone. Don't call it a financial service agency. It’s called Fangxing Bank.” At the same time, Huang Deyu also issued a special document through the town—in order to reform the economic system, adapt to the rapid development of commodity production, and severely stop the unhealthy trend of social usury activities, after research by the town committee, Comrade Fang Peilin agreed to try out the Fangxing Bank. Xing Qianzhuang.

Unexpectedly, on the second day after the listing, the staff of Wenzhou Agricultural Bank rushed to the gate of the bank to protest.As a last resort, Fang Peilin took down the signboard of "Fangxing Bank" and transferred it to an underground bank. After Fangxing Bank attracted great attention from all walks of life, under the instructions of the Wenzhou Municipal Government, at the end of 1984, the Wenzhou Branch of the People’s Bank of China sent special personnel to investigate the bank. In the investigation report submitted to the municipal government, it was written that : After discussion at the executive meeting, the People's Bank of Wenzhou City has a unified understanding on whether to run a trial bank. The basic view is that it agrees to the trial run, and it is recommended to strengthen management and supervision.We believe that in Qianku Town, where the commodity economy is prosperous, the demand for funds is large, the private lending is frequent, and banks and credit unions are unable to meet the needs, the approval of a trial bank is conducive to theoretical discussion and financial reform, and it is also helpful in practical work. to explore new paths.Theoretically speaking, the form of finance depends on the form of the economy. The form of finance should also adapt to economic development.From a practical point of view, compared with current banks and credit unions, banks have their own unique features in terms of operating style, service methods, and service attitudes... However, we must be cautious and strengthen management: first, we must obtain approval and issue licenses. Second, there must be a certain amount of self-owned funds; third, there must be a set of account books; fourth, it must be managed by the People's Bank of China; take risks.

Afterwards, the Wenzhou branch tentatively applied for a "financial license" from the head office for Fangxing Bank, but unexpectedly received a relevant reply after a full year: People's Bank of China Wenzhou Branch: On November 6th, it was reported that after research with the State Economic Reform Commission, the reply is as follows: For private banks, please follow the Provisional Regulations of the State Council on Banking Management, and cannot issue a "Permit to Operate Financial Services". Despite being underground, the bank's business is still booming. Less than a year after its opening, more than 2,400 deposits and loans have been made, and the total turnover of funds has reached more than 5 million yuan.

After being an aboveground bank for one day and an underground bank for five years, facing the attack from the banks, Fangxing Bank was unable to resist and closed down on its own.According to the records at the time, the finishing work of the bank was very serious and responsible, leaving no disputes. Fang Peilin's "China's No. 1 Private Bank" staggers forward, in fact, to some extent, it means that the power of private capital in Wenzhou is unstoppable.In the end, the money bank did not get a piece of paper approval, which inspired private capital to play greedy money games in an extreme and fierce way.

At the same time that Fangxing Bank made positive and positive explorations, Wenzhou's underground financial operations that violated regulations have long been like weeds, pervasive.These capitals wandered on the edge of the law and accidentally stepped into the minefield. This kind of financial game that can kill people is called "Taihui" by the locals, which is actually a general term for private financing activities in Wenzhou.The so-called "lifting meeting" was popular in urban and rural areas of Yueqing as early as the early days of liberation.At that time, as a non-governmental mutual aid financing method, the funds were mainly used to meet living consumption.With the expansion of the scale and the development of capital investment into advances for production and operation funds, over time, some rentier classes have emerged: "promotion" leaders.After many disasters, the debt-ridden families all more or less originated from Zheng Lefen, or the Wenzhou woman who served as the leader with Zheng Lefen.

The lender will absorb deposits at a preferential rate higher than bank deposit rates, and then release loans at a reasonable lending rate, earning fees through the interest rate difference. In Wenzhou around 1985, more than 300 million yuan of private funds circulated in this way, becoming the most important financial driving force for the development of private enterprises.Almost all homeowners have borrowed or lent funds from the "big fair".Chen Jiashu, who was famous for manufacturing military emblems for the U.S. Marine Corps, recalled: "The development of the factory depends on underground channels, and it can borrow up to 10 million yuan at a time."

However, "promotion" is based on credit, and its lack of legal protection will become a shortcoming, restricting the future development of this kind of credit finance.If there is a credit crisis, large-scale group incidents will become an inevitable footnote. In 1985, people were immersed in the momentary joy of the high return of the "raise meeting".More people brought more money into the home of the host. Perhaps the description of "crazy" is not enough to express the situation at that time. Government cadres, middle school teachers, and even waste pickers don’t need to be persuaded by others. As long as they have spare money, they will put the money in a basket, cover it with vegetable leaves, and send it to the host’s home in the dark. .The person who experienced the incident described: the money was collected and placed on both ends of the wall first, and soon the money at both ends was connected together. The entire wall was full of piles in the morning, and at night a house was full of money, and the feet could not be inserted. The door-closing militiamen guarded the door with bayonets, but the crowd refused to disperse, clamoring to join the association and throwing piles of money in, the militiamen had to force them back with bayonets.

The reason why people are so enthusiastic is that they are promised returns that are almost the same as usury.According to the most popular promotion rules at that time: a member pays 11,600 yuan to join the club. From the second month onwards, the owner will pay members 9,000 yuan per month for 12 consecutive months, totaling 108,000 yuan; from the thirteenth month onwards , the member then pays the owner 3,000 yuan for 88 consecutive months, totaling 264,000 yuan, and the owner pays 9,000 yuan per month.Rolling in this way, a session is 100 months.The biggest risk is in the first year, mainly turning 11,600 yuan into 108,000 yuan.Someone has calculated that to maintain a membership of 11,600 yuan, 22 members must be developed by the sixth month, 69 members by the twelfth month, and 20,883 members by the eighteenth month . Attractive investment, high returns, an "impossible game" burned by fluke and pathological collective drive. 300,000 people were involved, and the payment amounted to 1.2 billion yuan. In the spring of 1986, the chain of the fair showed signs of breaking and collapsing, and panic spread in various towns like the plague.A financial catastrophe loomed.In just three months, 63 people in Wenzhou committed suicide, more than 200 people absconded, and more than 900 people were illegally detained. After the disaster, a woman named Zheng Lefen, a death row inmate, died in pain in her thirty-eighth year without leaving a single photo.As one of the protagonists of the disaster, Zheng Lefen unfortunately became the target of the government's efforts to rectify it.The Wenzhou woman was arrested after a hundred days of absconding and sentenced to death five years later.Her husband, Cai Shengnan, surrendered himself after a month of absconding and was sentenced to life without term, which finally saved his life. Many people still have complex resentments and prejudices against the leader.If we objectively pursue the instigators of the financial turmoil, instead of blaming all the responsibilities on these leaders, it would be better to say that this error that should not have happened was due to the urgent financing of private enterprises in Wenzhou and the country’s financial policy that has not yet opened up to the private economy. The tension between them-this tension has become the internal motivation for the rapid development of "Taihui". The history of the world's financial development is a history of continuous improvement and evolution from private finance to formal finance.Banks, insurance, securities and futures markets, gold markets, foreign exchange markets, trusts, financial leasing... all kinds of financial situations are all initiated by the private sector and then recognized by relevant officials. Entrepreneurs are everywhere in Wenzhou. In fact, there have been many Wenzhou people who have bravely moved forward on the road to become bankers. Unfortunately, very few of them finally managed to see the moon. In 1986, with the efforts of Yang Jiaxing and others, the earliest "shareholding cooperative credit cooperative" in the country - Lucheng Urban Credit Cooperative was established. Six days later, Dongfeng City Credit Cooperative, the first privately owned urban credit cooperative in the country, opened its doors, creating a precedent for private financial institutions.Two years later, 16 rural financial service agencies were approved, which are joint-stock credit cooperative organizations established in the subordinate counties of Wenzhou City. In 1992, Cangnan, Wenzhou established the first rural cooperative foundation. "Two cooperatives and one family" is a typical achievement of Wenzhou's non-government finance.Statistics show that in the 1980s and 1990s, there were 51 urban credit cooperatives, 34 rural financial service cooperatives, and 188 rural cooperative foundations in Wenzhou, with an average of at least one institution in each township. 1/3 of. By the mid-1990s, Wenzhou's small private finance had deposits exceeding 100 million yuan. At that time, the average deposit size of official rural credit cooperatives across the country was 40 to 50 million yuan.Wenzhou's private financial institutions have total assets of 2 billion yuan, accounting for 20% of the city's deposit and loan market. In 1991, Jinxin City Credit Cooperative in Taishun County, Wenzhou was established. At that time, the composition of shareholders was very complicated. There were local village committees and government departments of the government collective nature, enterprises, and individual farmers and industrial and commercial self-employed, with a total investment of more than 500,000 yuan. .Jinxin City Credit Cooperative developed well, and the annual interest and dividends of shareholders were very considerable. It became a model of private financial institutions and was placed high hopes by relevant departments at that time. Four years later, Ye Qing, the legal representative, and Wu Xiaoming, the general manager of the well-known "Jinxin Club" embezzled their savings and fled. Suddenly, a wave of panic broke out.According to people familiar with the matter, "Jinxin Club" had a debt of more than 10 million yuan and ended in bankruptcy. "Two cooperatives and one family" has flaws in its "blood": too many shareholders' related loans.As a pioneer of non-government financial institutions, it is always difficult to standardize the operation and management of crossing the river by feeling the stones.What's more, they took advantage of the lack of policies in the early stage of financial system reform to speculate wildly. The change of "Jinxin Society" just ignited a fuse. At the end of 1998, the non-performing assets ratios of 22 urban trust agencies, 34 rural financial service agencies, and 33 private financing service departments in Wenzhou were 7.7%, 20.6%, and 22.4%, respectively. In March 2000, 23 rural cooperative foundations in Cangnan County, Wenzhou, underwent a comprehensive clean-up and rectification.Among them, the business of 12 foundations was merged into the local rural credit cooperatives, and the remaining 11 foundations were forced to liquidate and close down. The privatization and liberalization of financial institutions and the immaturity and instability of financial supervision have led to the failure of the reform of private financial institutions. In the 1990s, Su Fangzhong, the founder of Dongfeng Credit Cooperative, which became popular across the country, also did not have a "good death". At that time, Dongfeng Credit Cooperative was all controlled by enterprises, and individuals did not hold shares. However, Dongfeng Furniture Factory, which was based in Su Fangzhong, was basically equivalent to individual holdings. The development speed of Dongfeng Credit Cooperative is also much higher than that of local government-run financial service institutions, and it has gradually become a "cash cow" for the capital operation of Su Fangzhong. In 1988, Su Fangzhong merged 3 state-owned enterprises and established the first private joint-stock enterprise in Wenzhou——Dongfang Enterprise Group, and he acted as the president himself. In 1991, the heart of expansion in the Soviet Union gradually arose.After leaving Wenzhou, he invested 100 million yuan in Zhongnan Building in Shenzhen.However, there was still a shortage of money in the Soviet Union at this time.Therefore, without the approval of the People's Bank of China, Su Fang Zhongxing reached a peak moment-issuing "subscription coupons" of Dongfang Enterprise Group to absorb funds from the public.Subscription coupons are known as "no risk, high interest, and good credit". The interest is repaid every 3 months, and the principal is repaid once due. At this time, Su Fangzhong seemed to be a master of hype. He was good at using the media to promote himself and gained great convenience for his own financing. However, the Zhongnan Building in Shenzhen did not bring the expected profits to Su Fangzhong. More than 200 million yuan in public deposits, bank loans and private loans made Su Fangzhong no longer able to deceive himself and others. In August 1999, the "subscription shares" that had been cashed out as scheduled stopped cashing out, and the empty shell of the Oriental Enterprise Group finally tore off its dazzling painting skin.Fang Xingzhong, who was once selected in "The Best of the Republic", was trapped in a cage, and a Chinese private financial star fell to pieces. How many romantic figures have been frustrated and annihilated in the ebb and flow of the tide, but there will always be traces left, telling people: no matter what, history can be left blank, but it will not be blank. Wenzhou's exploration of private financial institutions has sparked a new topic after many years. With a developed economy, intensive capital and frequent trade, Wenzhou is doomed to be a hot spot for financial institutions in any period.With the development of joint-stock banks in China, entering Wenzhou is an inevitable path for strength development.According to relevant regulations, joint-stock banks that operate across regions must first obtain permission from relevant local departments, and then obtain approval from relevant national departments before they can enter. The complicated process will invisibly increase huge upfront costs. The most convenient choice is to acquire a local institution with a license for a financial institution outlet and enter through a back door.And in Wenzhou, those private financial institutions that have withdrawn from the stage or are declining day by day have become sought-after "sweet pastry". Pudong Development Bank was the first to act. In 1997, Wenzhou Branch acquired Ruian Ruifeng City Credit Agency and Yueqing Xingye City Credit Agency. In April 2002, Industrial Bank Wenzhou Branch successfully acquired Yongjia Oubei City Credit Agency; In 2004, Minsheng Bank fell in love with Wenzhou Jinxin Club, but was unexpectedly overtaken by a latecomer, China Everbright Bank.Afterwards, Minsheng Bank "found another new love" and took advantage of the opportunity when the "promotion" of a credit union in Cangnan, Wenzhou was being rectified, trying to take over the credit union as a new plan to enter Wenzhou. A few years later, Wenzhou's original exploration of private finance provided various foundations for the cross-regional expansion of joint-stock banks, and when a new parent body emerged, the original "two cooperatives and one family" will be reborn. After the bloody financial catastrophe in 1986, Wenzhou's private financial activities did not disappear. Since the 1990s, family workshops in Wenzhou have become more formalized and commercialized, but it is still difficult for small and medium-sized enterprises to obtain loans from banks. Wenzhou people in the early stages of entrepreneurship can only expand their scale through private capital.Wenzhou's second economic venture, private capital is a well-deserved contributor. Anyone who understands economics knows that new wealth is also being generated while capital is circulating. But how this truth is applied in practice, I am afraid that no one knows better than Wenzhou people. Mr. Jin has a small factory with 100 employees in Wenzhou Economic Development Zone. There are many bosses like him in Wenzhou.But his other identity is probably only known to the Wenzhou bosses who are in urgent need of money. As you may have guessed, Mr. Jin himself is the owner of a "bank" responsible for lending money, that is, the owner of an "underground bank" as the saying goes.In his role, he was even busier than his role as the factory director for a while, such as during the Chinese New Year. Mr. Jin introduced that many companies are short of money at the end of the year. When they have no way to raise money, they think of borrowing money from "underground banks".When he is lucky, Mr. Jin's underground bank can even lend more than 10 million yuan a day.Because many people call to borrow money every day, and the borrowers are generally small and medium-sized business owners, and the required amount is relatively large, ranging from tens of thousands, hundreds of thousands, to millions.It is almost tens of millions to receive five or six orders a day. Mr. Jin also revealed that after running the "bank" for one year, he released a total of about 100 million yuan, and his income from interest is also several million. Many Wenzhou bosses are also engaged in "underground banks" like Mr. Jin's.Although this nature is similar to usury, it is different from usury as understood by ordinary people.The nature of this kind of bank is mainly to provide financial convenience for entrepreneurs. Generally, the borrowing time is relatively short, and if it is an acquaintance, there is no need for guarantees and various IOUs, and there will be no incidents of violence to force repayment. Rely entirely on the credit of Wenzhou people.Moreover, most of the borrowers are acquaintances. If they are strangers, they will not borrow even if the interest is high. When disbursing the loan, in order to ensure that the loan can be recovered, Mr. Jin also followed the borrower to personally inspect the borrower's operating conditions, and did not lend until he believed that the other party's investment project was good.This is very similar to a bank's lending policy. Due to the need to pay a certain amount of interest, and the fact that it is easy to affect their own reputation, generally the creditor will repay the loan immediately after the capital turnover is over. The existence of this "underground bank" not only facilitates the borrowers, but also provides interest income for the owner of the "underground bank", which can be described as a good investment direction. Taking Mr. Jin as an example, he also accidentally discovered that this is a good investment project.At the beginning, he had some spare money in his hands, and his friends had worked hard for several years, and they all had some money in their hands.Since his factory is in his hometown in Wenzhou and he has many acquaintances, his friends put their own money here first. When any of them need capital turnover, they can get it from here and pay a symbolic interest. It is equivalent to everyone's common reserve fund.The money was about 6 million at the time, plus him, a total of 6 partners. Later, with the continuous development and growth of the business of myself and my friends, more and more spare funds, they no longer need so much money to turn around their business.So the six people discussed it: Since there are many bosses who need capital turnover, why don't we lend this money to others?Thus, this underground bank was formed. Because the interest rate adjustment is relatively reasonable, ordinary entrepreneurs can afford it, and the reputation is relatively good, Mr. Jin's underground bank has begun to gain a certain reputation.After working for a long time, more and richer bosses acted as masters, and handed over the money in their hands to Mr. Jin’s bank to take care of. Mr. Jin was completely promoted to be the owner of the bank, and bank loans became a new investment. project. Due to the existence of underground banks, many people rumored that all Wenzhou people borrow money.Although the facts are not so exaggerated, private lending in the nature of underground banks is very common. After the country promulgated the new eight regulations, Wenzhou capital withdrew a lot from real estate, and the whereabouts of the capital became a problem for a while.Under such circumstances, private lending has become the most popular short-term investment because of its high rate of return and quick return.When small and medium-sized enterprises cannot obtain capital turnover through banks, it is most normal to borrow money through underground banks. In 2008, Yan Yan, President of Softbank SAIF, once said that China may be one of the countries with the lowest capital market efficiency in the world. He said: "Currently, Chinese banks have more than 30 trillion deposits, accounting for 100% of the total capital market in China. More than 90%, but entrepreneurs do not get the support of banks - China's banks basically do not lend to entrepreneurs, and even did not lend to private enterprises a few years ago." In Wenzhou, the utilization rate of capital is far ahead of the whole country, which is entirely due to the active private lending relationship: as long as families in Wenzhou have spare money, almost without exception, they are involved in private lending; statistics in 2011 show that Wenzhou About 89% of households and individuals and 59% of enterprises have participated in private lending; more than 300,000 private enterprises in Wenzhou, more than 60% of their start-up development funds come from private lending. "The prosperity of private finance leads to the prosperity of small and medium-sized enterprises." In July 2009, Xu Yufei, the deputy mayor of Wenzhou City, said in a speech: "Wenzhou's huge private capital is well-known throughout the country, and Wenzhou's private liquidity has been maintained at a scale of about 400 billion for a long time. , With these funds, Wenzhou people have established 30,000 industrial enterprises and 500 commodity trading markets all over the country, and Wenzhou’s capital has made a huge contribution to the economic development of all parts of the country.” On the one hand, it is difficult for a large number of private SMEs to obtain loans from banks. On the other hand, it is difficult for banks with complicated procedures to meet the requirements of SME loans—the amount is uncertain, the cycle is flexible, and the temporary nature is strong.This will inevitably lead to the prosperity of private lending. Private lending is a gray financial area. People in Wenzhou rely on blood relationship and various nepotism to borrow money. They rarely have mortgages or guarantees, but are bound by credit.At the same time, the interest on private loans is very high, but usually cannot be cashed because the relationship is too close.Therefore, the existence of underground banks as a third party is inevitable. When private lending develops to a certain extent, organized "underground banks" will expand uncontrollably.The monthly interest given by underground banks to individual lenders is generally 20% to 30%, and the basic monthly interest rate for lending to banks is 50% or even as high as 100%.When it is crazy, in order to absorb funds as much as possible, underground banks promise lenders an annual interest return of 40% to 200%, so the interest that lenders have to pay can be imagined.The unattainable interest return attracts more people to lend money, but it also quickly increases the risk for the bank's return of funds. The lending relationship of underground banks is not recognized by the government, so the interests of lenders cannot be protected by law.As a result, criminals take advantage of the concealment of this gray financial system to engage in various illegal activities. Under this seemingly gorgeous but dilapidated robe, there are countless lice and insects hidden, eroding the rights and interests of lenders. . Around 1998, Xie Xiaozhong from Pingyang became the owner of an underground bank.The status of a retired teacher has added invisible credibility to Xie Xiaozhong, and the monthly interest rate, which is nearly 10 times higher than that of bank deposits in the same period, is also very attractive. By October 2001, Xie Xiaozhong’s underground bank had 182 depositors, absorbing 2,000 yuan of funds. More than ten thousand yuan.Using the funds from the underground bank, Xie Xiaozhong opened a real estate agency to carry out real estate speculation and land sales. One day in mid-October 2001, Xie Xiaozhong suddenly disappeared, and at the same time there were rumors that due to the downturn in the real estate market and the poor management of underground banks, Xie Xiaozhong's capital chain was broken and the bank could not continue. On the surface, this is a debt crisis caused by an out-of-control underground bank, but behind it is a fund fraud case. Xie Xiaozhong, who used the funds from underground banks to "speculate real estate" and "land", has reaped a lot and is fully capable of repaying the bank's debts.But after Xie disappeared, the "Debt Repayment Council" composed of Xie Xiaozhong's relatives handled the follow-up matters.Under the operation of the council, the debts of underground banks use various means to evade or transfer debts and defraud funds.The most important way is to use the real estate under Xie Xiaozhong's name to pay off the debt, but in the valuation, Xie's real estate is 50% to 200% higher than the market price.In order to get back their deposits as soon as possible, the depositor had to agree to this disguised fraud. Through this method, Xie Xiaozhong made a profit of more than 8 million yuan... Since the "promotion" in the early 1980s, the model of Wenzhou's "underground bank" has basically remained unchanged. In 2003, Gao Qiuhe's "Economic Mutual Aid Association" was established. The threshold of the mutual aid association is not low, with an entrance fee of 500,000 to 1 million yuan, but there are still groups of Yueqing people joining.The funds of these members are basically patched together by the whole family, and they are looking at the high return of the mutual aid group - a membership fee of 10,000 yuan, and a monthly return of 1,500 yuan. What Gao Qiuhe needs to do is to follow the basic structure of the Economic Mutual Aid Association and attract more and more members to join.Gao Qiuhe has a huge amount of membership dues in his hand, and keeps buying a lot of fixed assets such as houses and cars for himself. At the same time, the insanely high interest rates of early members must be paid for by new members' introductory dues.In order to maintain this cycle, Gao Qiuhe has to carry out rounds of misappropriating money non-stop. Real estate development and the establishment of investment companies have become the best reasons. When all the members are enjoying the return of "one million profits", the "pyramid marketing" mutual aid association finally came to its collapse. In 2007, Gao Qiuhe owed 115 members 116 million yuan in funds.In the end, Gao Qiuhe was sentenced to death and all his assets were confiscated.The verdict contained a list of victims on three sheets of paper, and each account of these victims had almost one million funds "gone forever". Most of the loans from underground banks do not have a guarantor, and the amount of some loan receipts does not match the actual loan amount, and even the interest is not specified. The high interest promised by underground banks is also difficult to fulfill in practice.When using legal means to protect their own rights and interests, due to various irregularities, depositors cannot produce evidence of legal protection, so the tragedy of family ruin is not uncommon. In the first half of 2010, the Lucheng District Court in Wenzhou accepted 869 private lending dispute cases this year, a year-on-year increase of 37%, and the total amount of the cases reached 1.28 billion.Among the cases that were accepted and awarded, most of them were because the executor's whereabouts were unknown or there was no enforceable property, which led to the borrower's "bamboo basket drawing water in vain". Legally speaking, guarantee refers to "a system that uses the credit of the debtor or a third party or specific property to urge the debtor to perform the debt in order to ensure the fulfillment of the creditor's rights by a specific creditor"; There are hidden subtexts such as "righteousness and dry cloud" and "both ribs and knives". In Wenzhou, where private lending is extremely developed, the financing guarantee network is linked by blood, geography, and circle of friends. It is intricate and intricate, and often affects the whole body.However, the spirit of "holding together" embodied in this guarantee network is precisely the business spirit and tradition that Wenzhou merchants value most. Wenzhou people all over the world have established large and small chambers of commerce—aiming at "carrying together and accompanying each other, doing business all over the world".The guarantee company established in the name of the Chamber of Commerce seems to better illustrate this team spirit. In 2003, Xinjiang Xuanle Guarantee Co., Ltd. was established by 15 key enterprises in the Wenzhou Chamber of Commerce in Xinjiang to provide professional credit guarantees for Wenzhou enterprises in Xinjiang, becoming the first guarantee company in the Wenzhou Chamber of Commerce.After that, Hefei Wenshang Guarantee Co., Ltd., Kunshan Zheshang Investment Guarantee Company, and Guilin Wenzhou People’s Credit Guarantee Company were established one after another. “Guarantee companies were established to solve the financing difficulties of member and non-member companies, and the service targets are mainly Wenzhou people. The guarantee company of the Chamber of Commerce has built a good platform, providing the greatest help and support for Wenzhou businessmen to establish a good credit relationship with major banks, and making people believe that "Wenzhou merchants" have become the "golden key" of bank credit. At the same time, various investment companies and venture capital have also been established one after another, directly participating in the investment and lending process.Shenli Group and Wenshang Lin Ashin founded Shanghai Shouhua Venture Capital Co., Ltd., and established a diversion fund for Wenshang, and some investment service institutions emerged, such as Wenzhou Jucai Investment Co., Ltd., Wenzhou Tianyin Investment Co., Ltd., Wenzhou Hengsheng Asset Management Co., Ltd., etc. Even so, in Wenzhou, many "guarantee companies" have mutated and extended their hands to "private illegal credit".Whenever the financing of small and medium-sized enterprises suffers setbacks, or when the national policy tightens money, the corresponding private credit situation - usury will be extremely prosperous, and the feast of Wenzhou guarantee companies will also start at the same time. A person familiar with the matter revealed: "Small-sized guarantee companies in Wenzhou have long been an important carrier for private funds to gather and borrow. We call it 'refunding' here. It means collecting funds from relatives and friends and then lending usurious loans. The real interest rate of lending in the name of a natural person, and The 'guarantee contract' issued in the name of the guarantee company has different interest rates, and the 'two contracts' allow them to easily deal with the investigation." Zhejiang Yunguang Pump Valve Manufacturing Co., Ltd. stands in an industrial park in Oubei, Yongjia, Wenzhou.Zhu Jiguang has been fighting for this wind for more than 20 years. In 2007, when Ye Xianmin, his business partner for many years, was in financial difficulty and urgently needed a bank loan, Zhu Jiguang, like all loyal Wenzhou businessmen, used his company's assets as a guarantee for his friend. Many times since then, Ye Xianmin asked Zhu Jiguang to guarantee the loan and told him that the previous loan had been repaid. Zhu Jiguang, who was convinced, always agreed very readily. It wasn't until one day in 2008 that Ye Xianmin had a conflict with a man named Zhu Tiancheng and was sentenced to seven months in prison for destroying Zhu's house. Zhu Jiguang suddenly learned that this was a serial guarantee case: Ye made a case for Zhu Tiancheng. In order to save himself, in desperation, Ye dragged Zhu Jiguang into the water, and Zhu Jiguang became Ye's guarantor for many usury loans.After Ye Xianmin went to prison, "Old Gao" found the guarantor Zhu Jiguang.What Zhu Jiguang never imagined in his dreams was that even with interest on the principal, the loan he had guaranteed for Ye had reached 10 million yuan, and all of these fell on himself. Zhu Jiguang chose to commit suicide under the crazy pressure of "Old Gao". In the current regulations, guarantee companies do not have the authority to lend money, and can only provide third-party guarantees when enterprises borrow from banks.All of Ye Xianmin's usury loans came directly from the guarantee company.The alienation of such guarantee companies into "underground banks" has long been commonplace in Wenzhou. In local newspapers in Wenzhou, almost all classified information pages are filled with advertisements for loans and loans. "Underground banks" exist in various forms. Guarantee companies, investment consulting companies, pawn shops, consignment houses, etc. are actually engaged in private lending activities similar to banks. With the help of this form of legal organization, underground banks have become open or semi-open, and act recklessly in the usury market, which can be called a vampire on Wenzhou's economic body.These guarantee companies are hidden in scenic spots such as Jiangbin Road and Jingshan Park in Wenzhou City. They are presented in the form of high-end clubs, with services such as beauty, catering, and entertainment.While these expensive guests were chatting happily and enjoying the service, a lot of money flowed in and out like an undercurrent. The relatively high-end clubs exist in the form of clubs, distributed in beautiful places such as Jiangbin Road and Jingshan Park, integrating beauty, catering, and entertainment, and providing services for wealthy members. Statistics show that at the end of 2011, Wenzhou had 186 guarantee companies, 48 ​​pawn shops, 360 consignment houses, and 780 investment consulting companies, totaling 1,374. In the history of Wenzhou's economic development, this kind of "private loan" similar to a guarantee company was once used as a Guanyin Bodhisattva for financing small and medium-sized enterprises. However, after Wenzhou's economic crisis broke out in 2008, such an institution suddenly became popular. It has changed to "urging the palace of the king of hell". Behind these guarantee companies is often a large enterprise engaged in industrial production.Part of the guarantee company's funds come from private retail investors, while a large part comes from banks. In 2011, after the Wenzhou enterprise "running tide", people were surprised to find that the capital chain of Wenzhou "Jubang" Shoes, Wenzhou Jiangnan Leather, and Wenzhou Nai Donald's Shoes all had a common factor. Invested in an "illegal guarantee company". Some people say that in Wenzhou's capital chain, enterprises, banks, and guarantee companies form an equilateral triangle, and their roles can be exchanged at any time.Under normal circumstances, if an enterprise wants to obtain a loan from a bank, it must deposit a certain amount of guarantee money through a guarantee company, and then the bank will issue several times the loan funds to the enterprise. With the strong demand for private credit, many companies have begun to engage in usury business in a low-key manner.他们以自己企业的资产为抵押，从银行贷来大笔资金，并不运用于扩大再生产，而是放贷到资金缺乏的中小企业。大型企业以低息从银行获得贷款，成立担保公司，之后又立即转手发放高利贷，赚取巨额利息差。在这过程中，中介担保、投资咨询公司“反客为主”，银行沦为担保的角色，担保公司反而成为一个庞大的资金供应商。 银行成为高利贷市场巨大的融资平台，这是一种非常可怕的现象。 这里是昔日“八大王”叱咤一时的地方，是中国第一家私人银行诞生的地方；在这里有中国最活跃的私营企业集群，也有中国最密集的亿万富翁；这里有高密度的奢侈品商店，也有数以万计的名车。后来，这里又诞生了一个在中国其他地方都不能仿效的记录——数十个跑路的大老板。 在温州老板们的跑路事件还不明朗的时候，舆论中有一种观点认为温州的私营企业出现问题是一种必然和客观的现象，一些温州企业在近5年的发展中严重迷失了方向，盲目地扩大投资。一些企业投资风险大的奢侈品市场、房地产市场，结果在国家政策专项和国际金融危机的双重打击下，大批的企业开始出现资金链紧张的状况。 这种观点认为，温州出现问题的企业只是一些本身就存在问题的企业，它们出现问题是必然的事情。 从后来的事实来看，当时的这种观点也有一定的合理性。如果我们看一下当时出现问题的那些温州企业的投资结果，就会发现，大部分“跑路”企业都存在主业之外的投资。 不过从更加客观的角度去分析，将温州企业的问题归罪于投资，不免有些有失偏颇。任何一家企业在发展过程中都需要不断拓展投资领域，如果用我们熟悉的一种投资理念来说就是“不要将鸡蛋都放在一个篮子里”，这个道理同样适用于实体经济的投资。 那么，“跑路”的众多诱因究竟是什么？