Chapter 14 Chapter 1 Looking forward to new students

A Chinese who works in an American think tank said this: "To a certain extent, some crises are not necessarily bad things. If it is not at the cost of the loss of human interests, I think such crises can make people feel better. Society rediscovers itself." Wenzhou's problems are special and typical.For them, under the glamor on the surface, there is an unspeakable predicament: many small businesses have no money, no policies or even attention. Most of the time, when they die, they die, and no one will even sing for them. A dirge. There are as many as 400,000 small private enterprises in Wenzhou, and thousands of them die every year. From the official point of view, this is "a very normal thing."

If the current difficulties and sacrifices can really awaken something, that would be great.As long as one can get out of the quagmire of history, such a price is really nothing.Even this kind of sacrifice, for Wenzhou, is a price that cannot be counted by statistics. Since the founding of the People's Republic of China, China has been living in a state of poverty and lack of self-confidence.When the relationship between China and the Soviet Union was good, China exchanged a large amount of its own agricultural products for technology and equipment from the Soviet Union. At that time, on the border between China and the Soviet Union, the Soviets used an iron ring with a diameter of 7 cm to verify whether the Chinese apples met their standards. : If the apple falls from the hoop, the apple is unqualified.

Today's China has gone through the era of begging for investment from others. The Chinese are rich and private capital is rich. We can rely on our own money to build our country.More and more private capital began to appear in the capital market, and the money in the hands of the Chinese became the subject of investment, but these subjects did not receive the respect they deserved. Although it has long been reported that Premier Wen Jiabao will go to Wenzhou, small and medium-sized enterprises in Wenzhou are still looking forward to it day and night. On October 3, Premier Wen Jiabao of the State Council led central bank governor Zhou Xiaochuan, Finance Minister Xie Xuren, China Banking Regulatory Commission Liu Mingkang and other senior financial and economic officials to Wenzhou on October 3.

This night, like me, there must be countless Wenzhou business owners who can't sleep at night.Those business owners who fled outside heard the news, and I believe they had mixed feelings. Early the next morning, I came to Baixiande Clothing Co., Ltd. in Longwan District, Wenzhou City. Ruixing Group, Baixiande Clothing, Kaiyuan Group, Hazan Shoes, Universal Lock, Zhongcheng Group, Zhongyi Group and other enterprises The representative's face had uncontrollable excitement and anticipation, which had obviously been a long time coming. At the beginning of the symposium, Premier Wen said quickly: "I am here this time to solve the problem. Don't say stereotypes or polite words, but go straight to the point. It is okay to make suggestions and discuss disputes. In short, I hope everyone to be honest."

At the symposium, everyone spoke freely.At that time, I put forward five suggestions to Premier Wen: the state should directly reduce taxes for small and medium-sized enterprises, and "release water to raise fish"; accelerate the pace of financial opening up to the outside world, allow private capital to build small banks that serve small enterprises, and make private lending Legalization; speed up the pace of reform of the investment and financing system, improve the bond and equity markets; moderately relax macro-control policies, and implement relaxed assistance policies for small and medium-sized enterprises.Finally, I also suggest that the State Council set up a national small and medium-sized enterprise management agency, and establish a national small and medium-sized enterprise management agency under the State Council.

After listening carefully to the speeches of the delegates, Premier Wen pointed out four solutions to the crisis in Wenzhou: It is necessary to conscientiously implement and improve the differentiated financial regulatory policies for small and micro enterprise loans.Conduct special assessments on small business loans that meet the relevant conditions, and increase the tolerance for small business non-performing loan ratios. It is necessary to make clear that small and micro enterprises are the key support objects, and support financial institutions that provide services for small and micro enterprises.It is necessary to urge all kinds of banks to earnestly implement the credit policy of the state to support the development of small and medium-sized enterprises, especially small and micro enterprises.Improve the incentive and restraint mechanism, encourage various financial institutions to improve financial services for small and micro enterprises, and strengthen the social responsibility of banks, especially large and medium-sized banks.In accordance with the new enterprise classification standards, clarify the requirements for the proportion and growth rate of bank loans to small and micro enterprises, and strengthen statistics and end-user monitoring to ensure that policies are implemented in place.Clean up unreasonable bank charges and margin deposit requirements, investigate and deal with violations, and effectively reduce the cost of corporate credit funds.

It is necessary to increase the support of fiscal and taxation policies for small and micro enterprises, extend the period of relevant preferential tax policies, and study and further increase the intensity of preferential policies. To effectively prevent financial risks.Financial support for small and medium-sized enterprises must follow market principles, reduce administrative intervention, and reduce market risks and moral hazards.It is necessary to strengthen the supervision of private lending, guide its sunny and standardized development, and play its positive role.Vigorously rectify the financial order, take effective measures to curb the tendency of usurious loans, crack down on illegal fund-raising in accordance with the law, properly handle the problems of inter-enterprise guarantees and broken capital chains, strive to achieve early detection and early disposal, prevent the spread of risks, and prevent regional risks.For the risk events that have occurred, it is necessary to properly handle them, protect the legitimate rights and interests of the people, and enhance market confidence.

The four prescriptions prescribed by the Prime Minister for the Wenzhou crisis are undoubtedly very encouraging.After the Prime Minister went south, the relevant departments of Zhejiang Province and Wenzhou Municipal Government quickly started to implement the spirit of the Prime Minister's speech, and a series of good news came out. The four-level (province, city, county, and township) government video conference of Zhejiang Provincial Government was held on October 7. The meeting analyzed several objective reasons for the survival difficulties of Wenzhou enterprises - rising labor costs, tight capital supply, and financing costs. The rapid rise, so the meeting requested that government departments should take the initiative to come to the company to solve problems.

On October 10, Zhejiang Banking Regulatory Bureau issued a "package" of financial assistance measures, requiring the province's banking industry to fully implement the "three strict and five prohibitions", urge banks to strictly self-discipline, reduce financing costs for small and medium-sized enterprises, and help small and medium-sized enterprises tide over difficulties.The Wenzhou Municipal Party Committee and Municipal Government also made the "Opinions on Stable and Standardized Financial Order and Promoting Economic Transformation and Development", which stipulates that small and medium-sized enterprises will not withdraw or suppress loans, and will provide financial assistance to enterprises in crisis as much as possible.

Local enterprises in Wenzhou that have always had the "spirit of holding a group" also took action.More than 30 companies in Longwan District of Wenzhou have joined hands to form multiple mutual insurance alliances and mutual insurance funds to ensure smooth financing channels between each other; Wenzhou Ouhai Holding Group was established by 37 companies in Ouhai District and set up a special assistance of 200 million yuan funds. Premier Wen Jiabao of the State Council presided over a State Council executive meeting on October 12 to study and determine nine major financial, fiscal and taxation policy measures to support the development of small and micro enterprises.

In August 2011, Xiang Guangchun of Zhejiang Aotai Machinery Manufacturing Co., Ltd. was at a loss. In 2011, the central bank raised the deposit reserve ratio six times and raised interest rates three times. Xiang Guangchun obviously felt the difficulty of financing. At this time, the various costs of the enterprise's production also increased greatly: the labor cost increased greatly, and the salary of employees increased by more than 70,000 yuan per month; the price of raw materials also rose ridiculously. 2000 dollars.As a result, the company needs to increase the working capital of 5 million yuan in order to maintain normal production and operation. In the middle of the year, Austai also received two big orders, which made Xiang Guangchun both happy and anxious.The company's liquidity is insufficient, and the production and operation are extremely difficult. In September, Wenzhou's private lending began to collapse, and the interest rate was already unattainable. Xiang Guangchun didn't dare to touch it, so he had to find ways to find a bank loan. "When I went to Bank A, the bank simply refused the loan, saying that the quota was exhausted; I went to Bank B, and was told that I could not get a loan without fixed assets as collateral; I went to Bank C, and I could get the loan in 3 days before, but now I have to wait in line. There is no telling when the amount will be available, and the interest rate will go up, even if it is too high, it will go up to 100%." ​​After half a month, Xiang Chunguang's leg broke, and he finally found a bank that was willing to lend. For enterprises like Australia and Pacific, there are very limited options for obtaining bank loans, either mortgage loans or guaranteed loans.The 20-acre factory building of Aotai is rented, and there are no mortgageable assets, so the only option is to guarantee the loan.The guarantor also has two options, one is personal credit, and the other is corporate guarantee. In the last ten days of September, the credit crisis in Wenzhou city was cloudy. In Longwan District - the "eye of the storm", no private lender dared to borrow money.At this time, many companies were deeply implicated in the bankruptcy or bankruptcy of the guarantee company. No matter how good the relationship is, the company dared not guarantee other companies. What makes Xiang Guangchun even more anxious is that because of the Wenzhou credit crisis, raw material suppliers are now required to pay full payment before picking up the goods, which is another huge funding gap. In September 2011, Xiang Guangchun didn't get a few restful sleeps. With the National Day approaching, Premier Wen went south to rescue Wenzhou. Xiang Guangchun paid close attention to current affairs and looked forward to the release of good news.Sure enough, in early October, Zhejiang Province and Wenzhou City successively issued policies to support small and medium-sized enterprises, and relevant departments began to take the initiative to come to the door to solve problems for enterprises. The appearance of the Science and Technology Bureau of Longwan District made Xiang Guangchun lament that he had met a noble person.After learning about the financing difficulties of Australia-Pacific, the Science and Technology Bureau introduced the technology subsidy loan project to Xiang Guangchun-"In August, we reached an agreement with the Longwan Rural Cooperative Bank to arrange a special fund of 10 million yuan from the technology funds every year for technology innovation loans Project interest discounts, the government and the bank will work together to help enterprises overcome difficulties." Soon, Longwan Agricultural Cooperative Bank pledged two patented technologies for a loan of 2 million yuan. All the procedures were simplified, and the loan interest rate was also reduced a lot. The loan soon reached the account of Aotai Company. Shortly thereafter, Aotai received another 1.8 million yuan loan from the Longgang Agricultural Cooperative Bank for a period of half a year.Xiang Guangchun purchased new machines and worked overtime for production. "The 100 sets of beveling machines from Russian merchants and the orders from domestic Xizi Otis elevators must be delivered by the end of the year!" Looking back at the tragicomedy recently staged by Wenzhou businessmen, one of the most obvious reasons is that the industry represented by Made in China is in an embarrassing situation: It cannot but be said that Made in China is very strong, so powerful that it has become the world’s factory, with nearly 200 products produced Dominate the world.However, it cannot be said that Chinese manufacturing is very powerful, because most of them are either unknown brands, or are affixed with internationally renowned trademarks, and can only earn a meager processing fee, but they cannot take advantage of the brand price. The gold content of the product is pitifully small. Brands are multi-dimensional for enterprises, and their value does not lie in the cost of creating a brand, nor does it lie in the higher premium that can be obtained after having a brand, but in the fact that a brand can enable its owners to obtain relatively stable income in the future. In addition, as a face of an enterprise, the brand not only demonstrates the culture and quality of the enterprise, but also serves as the glue that maintains the market and consumers.A company with a brand can confidently raise prices on the grounds of rising raw material prices, or it can still have loyal old customers when orders are sluggish. When the U.S. economy was in a downturn in 2001, ordinary people tightened their wallets, but Starbucks, one of the high-end consumer goods, was full of vitality and even created better performance than before.Due to the brand recognition of Starbucks, even if Starbucks raises prices, consumers are still in an endless stream. For China, a brand is a business card that the public recognizes about a company or a product. It is also a kind of intangible wealth, and it is also a booster for the transformation from Made in China to Created in China. It makes China more respected. Technological innovation is the last word to achieve brand innovation. Only with patented technology or leading technology that rivals are overwhelmed by, can an effective technical barrier be established, and the unique advantages of the corporate brand can be maintained for a long time. Therefore, whether it is brand or innovation, it is the "Huashan Two Roads" that Chinese manufacturing has to take.However, no matter the brand or innovation, it is impossible to lack the support of capital.In China, the total amount of private capital is about 2 trillion yuan. Once these capitals are activated, they will generate huge productivity and social and economic benefits, which will definitely have a huge role in promoting the promotion of Chinese manufacturing. Now, a part of private capital that specializes in "speculation" is quietly transforming, starting to take the industry as the next foothold. At the beginning of 2010, the global economy showed signs of recovery. Mr. Zhao, the owner of an electrical component factory in Wenzhou, withdrew his funds from investing in real estate and the stock market and resumed work. In April 2010, when the government's new real estate policy to crack down on real estate speculation was introduced, Mr. Zhao's funds had all been returned to the company.He feels very fortunate and correct about his return to the industry: "Since this year, the number of product orders in the international market has increased by 20%. This is a very good opportunity. Next, I will open a branch factory in Fujian. If there is no There are better investment opportunities, and I will not consider investing in other fields for the time being.” In Wenzhou, it is not uncommon to find people like looking for a boss, and the funds returned from the stock market and real estate are calculated in the hundreds of billions, but it is rare for people like him to return to the industry smoothly.In order to encourage private capital to return to industry, in June 2010, an intermediary service organization that "finds projects for capital and capital for projects" - Wenzhou Private Capital Investment Service Center was established in Wenzhou.The opening ceremony attracted many small and medium-sized enterprises in Wenzhou and investors with large sums of money, who hoped to find high-quality investment projects through the service center. After screening, 200 projects have entered the central project library, and 454 projects are waiting for review, focusing on Wenzhou's local manufacturing, electronic technology, biomedicine and other growing high-tech industries to help them achieve transformation and upgrading, while Wenzhou Capital can obtain investment returns in the form of option dividends and year-end income. In this transformation, Wenzhou's private capital not only focuses on the province, but also focuses on outside the province. At the beginning of June 2010, the leaders of a prefecture-level city in Jiangxi Province led a delegation to Wenzhou to sell hundreds of acres of land in the new urban area, and the site was enthusiastically sought after.On the spot, the leader sighed: "At first I thought that Wenzhou people like speculation the most, but now it seems that it is not at all. Our industrial land has been favored by Wenzhou capital. This is not speculation, but investment in the true sense." Backed by strong private capital, it is a good thing for both private capital and Chinese manufacturing to make vigorous private capital the driving force behind the promotion of Made in China.And how to connect the abundant reserves of private capital with China's manufacturing industry, which is in urgent need of upgrading and "blood transfusion", will be one of the key points for whether the benefits will emerge. On October 9, 2011, at 19:30 Beijing time, Hu Fulin, the boss of Wenzhou Xintai Group, appeared at Shanghai Hongqiao Airport.The most influential "Running Boss" is back. The next day, Hu Fulin returned to Wenzhou. "Farewell" here less than 20 days, Hu Fulin already felt that the atmosphere is very different.Later, in an interview with the media, Hu Fulin revealed: "The Wenzhou Municipal Government, the Ouhai District Committee, the Federation of Industry and Commerce, and the Optical Association have also been communicating with me, and are willing to form a group to help. Including affiliated companies and creditors, they have also been communicating with us. I went back to solve the difficulties through reorganization and other means. After Premier Wen came to Wenzhou some time ago, the whole situation has changed a lot compared with before I went out. From all aspects, it is not as tense as before.” On October 10, the relevant government departments of Dongtou County, Wenzhou City confirmed that Sun Fucai, the chairman of Wenzhou Aomi Fluid Equipment Co., Ltd. — the boss who invited employees to travel on this excuse, but was actually implementing a plan to run away — had quietly returned to Dongtou. According to relevant personnel from the Wenzhou Finance Office, apart from the return of Hu Fulin and Sun Fucai, several business owners who have run away have resumed contact. Everything is getting better, but despite this, there are still panicked bosses who dare not face the reality and face the pressure. On the evening of October 14, the employees of "Beautiful Foot Shoes" in Huanglong Street, Wenzhou received a notice: tomorrow is a day off. Being in this "eventful city", upon hearing the news, the employees already had a premonition.Sure enough, that night, Boss Rao of "Pretty Feet" started smuggling factory equipment overnight, and left Wenzhou in the early morning of the next day, fleeing to his hometown in Jiangxi. Boss Rao thought that no one knew about it, but unexpectedly the news spread like wildfire. Coincidentally, the "Ten Measures of the Wenzhou Municipal Public Security Bureau to Maintain Economic and Financial Order and Stability" was "freshly released" on October 14. It clearly stated that "the escape behavior of business owners in debt crisis and illegal fund-raising personnel" should be strictly investigated. , and make every effort to track down the suspected criminal business owners who have fled. Therefore, "beautiful feet" bear the brunt.The Public Security Bureau of Lucheng District, Wenzhou, where he was located, acted immediately, and a special task force for chasing and fleeing was quickly established. On October 17, members of the task force arrested Rao and his wife in Wuning County, Jiangxi Province. Later, according to media reports, compared with the high debts of other "running" tycoons, the debts of "Pretty Foot Shoes" are simply insignificant-only owed more than 300,000 yuan to the unloading supplier.The "death" of such a small shoe factory should have been submerged in the chaos of small and medium-sized enterprises in Wenzhou, but because it was "arrested and brought to justice", it became the first boss who was arrested and detained in the "running tide". Newspapers have become the gossip of everyone after dinner. On the second day after Hu Fulin returned to Wenzhou, the Xintai Group's affiliated companies held a financial assistance consultation meeting.The financial stability maintenance working groups of the Wenzhou and Ouhai district governments, the Wenzhou Federation of Industry and Commerce, and creditors from various banks attended the meeting.To Hu Fulin's relief, all the participating banks made it clear that they would "not withdraw loans from Xintai and its affiliated companies." Bank of China Zhejiang Branch, Xintai's main creditor, also agreed to extend the original loan period and Give certain discounts on the interest rate. After a full month of shutdown, on October 20, the production workshop of Xintai Group resumed normal production, and nearly 500 employees returned to the factory to work normally. After Sun Fucai of Wenzhou Omi Company ran away, 45 sets of high-priced equipment in the factory were also snatched up by creditors and transferred to Shanghai.After Sun Fucai's return, with the assistance and protection of relevant departments, Omi's equipment was transported from Shanghai back to Wenzhou Dongkou through normal legal channels. At the same time, more assistance measures have been introduced one after another.Various forms of "grouping" between government and enterprises, banks and enterprises, strengths and weaknesses, industries, and internal affairs will help Wenzhou "overwinter" as soon as possible. Non-governmental organizations have made every effort to help Wenzhou get out of the crisis: Wenzhou Private Capital Investment Service Center set up a 200 million yuan "enterprise restructuring and rescue fund", and the Lucheng District Federation of Industry and Commerce prepared 300 million to 600 million yuan for "temporary working capital for small and medium-sized enterprises to refinance", More than 30 member companies of the Wenzhou Small and Medium Enterprises Promotion Association contributed 3 million yuan each, and established a 900 million yuan fund to support the internal member companies of the Promotion Association. Industry associations and chambers of commerce are also impassioned and running around: Wenzhou Garment Chamber of Commerce clearly connects with multiple financial institutions in the form of industry newspaper groups to pave the way for financing for small and medium-sized enterprises. For emergency funds and adjustments, the Wenzhou Economic and Information Commission signed contracts with 13 banks and 15 financing guarantee institutions in Wenzhou, and launched 15 private capital service funds with a total investment of 5 billion yuan. Relevant government departments in Wenzhou City also launched a combination of measures to increase the support of special financial funds, implement tax reductions and exemptions for small and medium-sized enterprises and enterprises that meet the requirements of transformation and upgrading, and ease social insurance. policy. In May 2010, news of a national audition for "red CEOs" by Wenzhou enterprises attracted the attention of major media across the country. This special "recruitment order" was regarded as a "show".However, after experiencing this crisis, Wenzhou enterprises are increasingly aware of the importance of building corporate spirit and culture. On the afternoon of September 27, 2011, after Shen Kuizheng, the owner of Zhengdeli Shoes Factory, jumped off the building in Wenzhou, the left and right shoe companies under his company were panicked.Under the maintenance and perseverance of the shoe factory management personnel, the employees' emotions have been stabilized, the company's property has been protected, and the loss has been reduced to the lowest point. The left and right shoe industry has not fallen into chaos and disputes. Therefore, after the Wenzhou crisis gradually subsided, Wenzhou began the second recruitment of "red CEOs".Among them, "31 private enterprises such as Chint and Aokang launched 33 positions for party secretary candidates and one party building research position, offering a maximum annual salary of 300,000 yuan." In September 2011, Wang Zhentao, who had just been elected as the chairman of the Wenzhou Federation of Industry and Commerce, believed that "some enterprises with poor management should establish or improve the enterprise party organization to promote the long-term and stable development of the enterprise." Cashing out and other negative evaluations to stimulate productivity is also a realistic need of Wenzhou enterprises.” When everything gradually calmed down, people discovered that among the more than 400,000 small and medium-sized enterprises in Wenzhou, only a small number had problems, and the proportion of enterprises that ran away or jumped from buildings accounted for an even smaller proportion.It is panic that magnifies the crisis. Confidence is the foundation to overcome everything. On February 1, 2012, the beginning of spring, the "World Wenzhou Business Conference" will be held. "Once the beginning of spring is over, there are still no signs of spring in the city, but the wind is different." The winter of 2011 will eventually pass. In such a "post-crisis period", the original "World Wenzhou People's Congress" directly replaced the protagonist with "World Wenzhou Businessmen".At the conference, the Wenshang Manifesto was the self-reflection and self-encouragement of Wenshang after an unprecedented disaster: "In the face of the current credit crisis of private lending, all Wenshang made an oath: No matter how serious the current predicament is, no matter how serious the rebuilding The road to reputation is so long, we will try our best to be brave, self-respecting and self-disciplined, take honesty and trustworthiness as the way of doing business, take righteousness and virtue as the foundation of life, be loyal to the society, to the enterprise, to the employees, to the consumers, and to be an upright Wenzhou businessman .” From the end of December 2010, in the face of increasingly tense domestic real estate regulation, about 30 billion Wenzhou private capital flowed to overseas real estate.Initially, Wenzhou people’s overseas investment had a touch of “passive” elements. For example, Yunnan Ashima Cultural Industry Investment Co., Ltd. in Thailand wanted to share with Wenzhou people the huge ASEAN market of 1.9 billion people... According to incomplete statistics, In 2010 alone, there were more than 30 foreign properties recommended to Wenzhou. But when Wenzhou people encountered real estate and mineral investment crises in China, they began to act like a squid with its tentacles spreading, taking every piece of land in the world with traceable and profitable land as its own territory.The aftermath of the economic crisis has not disappeared. In the sluggish state of the global economy, Wenzhou businessmen began to invest in the world by buying bottoms. Under the increasingly strict restrictions on domestic real estate investment and mining investment, in June 2011, billions of Wenzhou private funds gathered and decided to invest in Africa to build industrial parks and trade cities.The number of people interested in investing has reached three to four hundred people. This is the most concentrated investment of Wenzhou private capital in Africa in recent years. Whether at home or abroad, minerals and real estate have always been the two favorite investment areas of Wenzhou businessmen. In April 2011, more than 10 Wenzhou businessmen organized a delegation to inspect the "Jeju Paradise" real estate project in Jeju Island, South Korea, and showed strong investment interest in the Korean real estate market. Under the strict control of domestic macro-control, "Wenzhou real estate speculators" disappeared in first- and second-tier cities in China, but frequently appeared abroad, and "buying the bottom of foreign real estate markets" has become a new trend. According to a manager of an international agency specializing in overseas real estate brokerage business, in the first half of 2011, the key cities of Wenzhou Capital's overseas property purchases were London, Vancouver, and New York. The United Arab Emirates and Malaysia are also countries favored by Zhejiang funds. A relevant statistical report pointed out: "The proportion of mainland investors buying houses in Vancouver, Canada has continued to increase. As of the first quarter of 2011, it has reached 29%, an increase of 4 percentage points from last year's 25%." During the Spring Festival of 2012, a group of businessmen from Wenzhou went to Vancouver, Canada to buy properties. It is said that after inspecting multiple real estate properties, they selected a high-end luxury house in West Vancouver, and most of the people living here are Chinese.Media reports: After looking at a 5-bedroom, 5-bathroom luxury house located at 2400 Halston Street in West Vancouver, covering an area of ​​11,000 square feet, with sea views, and a detached house worth nearly 5 million yuan, a money A businessman surnamed Wenzhou shouted cheap.He said: "The equivalent of RMB is only 50 million. A house with this kind of decoration material, let alone asking for hundreds of millions in Shanghai, is really cheap." Also in 2011, Chinese investors have become the largest overseas investment group in Singapore real estate, among which Wenzhou people are the main force.In August of this year, three young women from Wenzhou bought three houses in one go at the Singapore real estate transaction center, with a total price of more than 30 million yuan.In this regard, Far East Real Estate, the largest real estate agency in Singapore, has been familiar with it. Since 2011, they have often received bold businessmen from Wenzhou, China.A native of Wenzhou Rui’an who immigrated to Singapore also received calls from time to time from relatives and friends in Wenzhou who wanted to come to Singapore to see properties.She even sighed: "The sight of these relatives and friends buying houses in Singapore reminds me of the house buying boom in Shanghai around 2000." Amidst the cheers that Wenzhou is about to become the first city in China to allow individual overseas direct investment, the "flash in the pan" of the pilot program for overseas investment is particularly eye-catching. On January 7, 2011, the document "Wenzhou Individual Overseas Direct Investment Pilot Plan" was released, which means that it will soon pave the way for Wenzhou residents to invest overseas with money in the hands of Wenzhou residents - residents of Wenzhou who are over 18 years old can use legal channels "Go out" with your own funds and directly invest overseas. However, this is only a pilot program after all, and freedom will always be restricted. The "Trial Plan" has a clear limit on individual investment: the amount of a single overseas investment shall not exceed the equivalent of 3 million US dollars; multiple investors jointly implement an overseas direct investment. For investment, the total investment shall not exceed the equivalent of 10 million U.S. dollars; the annual total amount of personal overseas direct investment shall not exceed 200 million U.S. dollars. Moreover, in the initial stage of the pilot program, investment methods are not without rules and regulations, and are limited to establishing non-financial enterprises overseas or obtaining ownership, control and management rights of non-financial enterprises through new establishments, mergers and acquisitions, and equity participation. In a word, Wenzhou capital can only invest in industries abroad, such as setting up factories and trading companies, which does not mean that it can speculate in real estate or stocks overseas. Nevertheless, looking at the whole of China, so far, Wenzhou is the only individual overseas direct investment pilot in the country.However, good things never come. Just when people were rejoicing about this ice-breaking trip, an unexpected incident happened just two weeks later: the Wenzhou pilot project was "suspended" because it had not been approved by the State Administration of Foreign Exchange!Even Wenzhou businessmen have begun to set foot in the Wall Street financial market. In May 2010, the Wenzhou Municipal Government invested 6 million yuan to establish the Wenzhou Venture Capital Research Institute. Chen Gongmeng, the director of the institute, proposed in 2008: "Wenzhou's private capital should enter a professional, standardized, and international investment operation channel." Qin, the chairman of a clothing company in Wenzhou, took a stake in a local venture capital company in New York and became one of the main sponsoring shareholders.Although, like many people in Wenzhou, Qin is not familiar with PE and VC, but "by participating in the daily management, operation and project selection of Wall Street funds and venture capital institutions, he gained world-class PE and VC management experience", Isn't it a learning investment for Wenzhou people? The pace of Wenzhou's capital going global is unstoppable.