Chapter 15 Chapter Two From "Underground" to "Under the Sun"

Now that private investment enters some fields, there are still two doors: one is the "glass door", which looks like you can go in, but when you really want to go in, you will bump your head with a big bag; the other is the "spring door". door", just squeeze your feet in, and you will be popped out if you are not careful. No matter what kind of door, the ultimate meaning is export. This door in China will eventually open one day. Over the years, in the face of private capital, relevant government departments have adopted a cautious attitude.Crude suppression of illegal financing has led to the "retaliatory" crazy growth of underground money houses and even private usury.Therefore, the best way is to change the embarrassing situation of private capital, verify the integrity of private capital through legal means, move from the underground to the ground, and carry out sunny operations.

Wenzhou is a pioneer in private finance across the country.However, judging from various innovative forms of investment companies, venture capital companies, guarantee companies, leasing companies, and pawn shops, illegal financing still exists.Under the circumstances that the people do not raise officials and do not investigate, the unscrupulous illegal financing behavior has led to the collapse of private credit and the crisis of the whole city.It is imperative to change the state of passive supervision by government departments. In October 2011, when Wenzhou's private credit was in chaos, Wenzhou City formulated a financial reform and innovation action plan, which consisted of "five major systems, four districts, and eight items."

Among them, there are two innovations in the management of private capital, in an attempt to "break out of the ground" the private credit that has been buried in the ground under supervision. Carry out pilot projects of private capital management service companies.This is a joint stock limited company that gathers private funds and provides services such as capital investment consulting, capital management, and project investment.Its funds are mainly used to invest in corporate legal persons, natural persons or other economic organizations and their projects within the jurisdiction of the county.

Establish a private lending registration service center.This is an organization that provides comprehensive services such as collection and release of supply and demand information, notarization and registration of loan contracts, settlement of transaction funds, asset evaluation registration, and legal consultation for both parties of private lenders. Enter financing and entrepreneurial activities legally and orderly.Select a county (city, district) within the year to start the pilot work first. In contrast, microfinance companies are the most successful examples of the sunshine of private credit.Therefore, the Wenzhou financial reform and innovation action plan proposed will vigorously promote small loan companies and expand their service coverage.The specific goals are: by the end of 2011, the number of microfinance companies in the city has grown to 50, an increase of 30 compared with the beginning of the year, the total net capital is guaranteed to reach 8 billion yuan, and strive to reach 10 billion yuan; the loan balance is guaranteed to be 10 billion yuan, and strive to reached 12 billion yuan.By 2012, there will be 100 microfinance companies.

On the occasion of the beginning of spring in 2012, good news came again. my country's first microfinance company financing supervision method - "Zhejiang Province Microfinance Company Financing Supervision Interim Measures" has been issued, that is to say, the whole process of daily industrial and commercial supervision will be The financing and operation activities for small loan companies are in full swing. The purpose of supervision is to lift the veil of occlusion, strictly control from the source, control the source of funds of microfinance companies, move towards openness, standardization, and transparency, and prevent all "grey behaviors" from breeding.

Subsequently, the "Guiding Opinions on Financial Support for the Development of the Real Economy in Zhejiang Province" was promulgated and implemented by the Hangzhou Central Branch of the People's Bank of China. 2012 became the "Financial Support for the Real Economy Service Year" activity in Zhejiang Province. The entity is the foundation, and what finance should do is to serve the foundation. The two pieces of news were released one after another, and a closer look shows the depth of intentions. The "Interim Measures for the Financing Supervision of Small Loan Companies in Zhejiang Province" regulates the specific regulatory departments for the financing operations of small loan companies, and is a measure of "management" from the source; "Guiding Opinions on Financial Support for the Development of the Real Economy in Zhejiang Province "It proposes to strengthen financial support for the real economy, which is a measure to answer the question of where funds should flow.

One controls the source, the other guides the flow, and they complement each other. The sunny road of microfinance companies is exciting. Looking back at the development of microfinance companies, the necessity and feasibility of making private finance transparent are very clear. On May 4, 2008, the China Banking Regulatory Commission and the People's Bank of China jointly issued the "Guiding Opinions on the Pilot Program of Small Loan Companies". In July 2008, Zhejiang Province was the first to launch a pilot program of small loan companies nationwide. Non-government financial institutions that become small loan companies not only have a legal ID card, but also enjoy preferential policies: the local government will support small loan companies and include them in the province's small business loans and "three rural" loan risk compensation Scope; if the microfinance company performs well—operating legally, with good credit records, the microfinance company can be upgraded to a village bank.

On October 13, 2008, Wenzhou's first microfinance company tested the water in Cangnan. In less than two years, the city's microfinance companies quickly increased to more than 10.These companies are different from Grameen Bank in that the Zhejiang Provincial Banking Regulatory Commission also stated in the documents issued that microfinance companies are not strictly financial institutions, but companies that operate special businesses and must be managed by large manufacturing companies. Take the lead, no deposits can be absorbed, the loan interest rate should not be higher than 4 times that of the bank, and a single 70% loan should not exceed 500,000 yuan.

Those who actively participate in private lending have always had concerns-the lack of legal status.After legalization, the establishment of microfinance companies can bring a large amount of private funds to the surface and guide them to contribute positively to economic development.Through laws, regulations and institutional norms, funds will be changed from an underground state to a "regular army". In this way, not only the vitality of private funds will be stimulated, but many small and medium-sized enterprises that are wandering on the edge of life and death will also be rejuvenated.

In Yueqing, Wenzhou, there is a small enterprise that produces low-voltage electrical appliances. Since November 2008, in order to cope with fluctuations in the price of raw materials, local small loan companies have taken advantage of the rapid and convenient lending. ", repaying as soon as the loan is raised, using the small loan company as his "financial department", and skillfully avoiding the impact of the financial crisis on the company. This reflects one of the characteristics of Wenzhou enterprises. In the face of the financial crisis, they have tried their best to overcome financing difficulties. Among them, small loan companies have contributed a lot.

Therefore, despite all kinds of restrictions, large manufacturing companies and guarantee companies have shown rare enthusiasm for the "small loan company", which is the ticket to the legalization of private finance.Among the top 100 companies, 90% have applied for microfinance, and many of them are business competitors, such as Chint and Delixi, which are both in the electrical appliance industry. Guo Zhichao, president of the Guarantee Industry Association, said that he is leading several guarantee companies to apply for licenses. He said, "What is more important is the trend. The future of microfinance companies is rural banks."Under the current policy framework, microfinance companies have little room for profit but high operating risks. Private capital is willing to enter this field because of the prospect of rural banks. However, when microfinance companies are running towards village banks, the pressure is on again. In June 2009, the China Banking Regulatory Commission promulgated the "Interim Regulations on the Reform and Establishment of Village Banks of Small Loan Companies", which set some new regulatory indicators for risk coverage and non-performing assets of small loan companies, which required banking financial institutions to take the lead. sponsor. This undoubtedly poured a lot of cold water on the heads of microfinance company operators.According to regulations, after three years of painstaking operation, the asset quality of a microfinance company has reached a series of regulatory indicators, but it is necessary to transfer the controlling stake to a commercial bank, which is undoubtedly tantamount to making a wedding dress for others. After experiencing a financial catastrophe. The two regulations on small loan companies issued in 2012 seem to have once again given operators a ray of sunshine.Believe that every ray of sunshine has a special meaning. According to statistics from the Wenzhou Municipal Bureau of Statistics, as early as March 2010, the balance of RMB deposits in financial institutions in Wenzhou had reached 551.452 billion yuan, a sharp increase of 20% compared with the same period in 2009. Where should I go?Wenzhou capital is watching. As long as it is capital, it needs to continue to appreciate, and the funds withdrawn from investment markets such as coal speculation and real estate speculation need an outlet. In fact, Wenzhou has already begun to take action.Three private capital-oriented operating platforms led by the government have taken shape. They are Wenzhou Private Capital Investment Service Center, Wenzhou Merchants Foreign Investment Alliance and Equity Operation Center. Wenzhou Private Capital Investment Service Center was established jointly by Zhejiang Private Investment Enterprise Federation, Wenzhou Economists Association and Wenzhou Entrepreneurs Association.The official listing time is June 26, 2010, and plans to introduce more than 50 domestic and foreign investment institutions and fund companies. In the Wenzhou private capital investment service center, information on both the supply and demand side of "capital and projects" can be published in a centralized manner. For industries supported by the government, the center will focus on guiding private capital to enter. The Wenzhou Foreign Investment Alliance was led by the Wenzhou Private Enterprise Promotion Association, which I am in charge of. The "New 36 Articles" allow monopoly industries such as telecommunications and finance to be open to private capital, but investment in monopoly industries is often of the "heavy consumption" type. If private capital really wants to enter, it must be large capital, that is, joint entry of private capital.The establishment of the investment alliance can precisely integrate scattered Wenzhou private capital and maximize its value. In addition, on June 4, 2010, the Wenzhou Equity Operation Center, jointly funded by the Wenzhou Public Resources Trading Center, the Municipal Bureau of Industry and Commerce and the Municipal Finance Bureau, was established.At present, three companies have entered into custody, namely Yueqing Hexing Microfinance Co., Ltd., Ruian Huafeng Microfinance Co., Ltd., and Wenzhou Xinyan Real Estate Development Co., Ltd. On this platform, non-listed companies can freely transfer shares to realize the effective connection between private capital and industrial projects, and to find new investment entrances for impetuous private capital. In May 2010, Wenzhou City conducted a special survey of private capital involving 324 enterprises, banks, investment companies and other departments. Crossroads, don't know where to go. Wenzhou native Chen Ruidong is a typical example. In 2001, he started to invest in real estate, known as the "Old Leader".Over the years, he has been moving to Zhejiang, Shanghai and other places. Investment in real estate has brought him huge profits. Moreover, he has also built his own investment industry chain, including investing in small loan companies and guarantee companies. In March 2009, Chen Ruidong purchased 24 villas in a Shanghai villa project at one time.However, soon Chen Ruidong, who was keen, sensed the imminent risks of the real estate market. After that, he gradually withdrew more than 80% of the real estate speculation funds. Now, Chen Ruidong's state is that he has no interest in a project that earns 1 million yuan. If a project can't earn more than 10 million yuan, he can't cheer up at all. Opportunities are created by waiting, not speculation.For the funds of people such as Chen Ruidong, Wenzhou Equity Operation Center is an option.The operation center adopts a membership system. Investors only need to go to Wenzhou Equity Operation Center to open an account, and then they can conduct equity transactions according to the principle of limited price and time.For companies entering the market for trading, joint stock companies and limited liability companies that have been established for one year, have sound financial conditions, and operate in a standardized manner can transfer their shares to investors inside and outside the province. Although the threshold for Wenzhou’s equity operation center is relatively low, most Wenzhou enterprises started from the industry. Now they are asked to hand over their hard-earned money to others for management. Most Wenzhou businessmen don’t approve of it. It will take some time for Wenzhou businessmen to accept this concept. . The starting point for Wenzhou to build these three platforms is not only to broaden private capital investment channels, but also to use professional investment institutions to raise funds through the integration of ethnic groups to serve Wenzhou's industrial transformation. Fan Gang, director of the National Economic Research Institute of the China Reform Foundation, said in an interview: Returning to industry will be the basic trend of the world economy in the post-crisis era. "From the basic principles of economics, no industry is more advanced, and no industry has a higher permanent profit rate. High profits are combined with high risks. Manufacturing profits come slowly, but manufacturing is more stable. It's less risky." The development of the real economy dominated by manufacturing is the foundation of a country's prosperity and people's strength, and the real economy can only be driven upward by the real economy.Wenzhou capital was originally accumulated from the real economy, and one of its future directions should be to feed back the real economy and stimulate the growth of the real economy. Moreover, Wenzhou enterprises have reached a critical moment of transformation, which coincides with Wenzhou entering the era of capital.In this context, the establishment of these three major platforms can also gather private capital and be managed and operated by professional institutions. In the end, capital can be fed back to the industry, and while promoting Wenzhou enterprises to become bigger and stronger, it can also help private enterprises in the industrial chain. , Value chain division of labor, into a more specialized field. Wenzhou is rich in entrepreneurs, and there are always people who are exploring in the direction of bankers, financiers and investors. When the huge private capital is struggling to find a way out of legalization, venture capital has become a very attractive new direction. In 2008, a sample survey conducted by Wenzhou Banking Regulatory Bureau showed that about 100 billion yuan of circulating funds entered the field of venture capital. In August 2008, the "Second Sinohead Venture Capital Summit Forum" held in Shanghai attracted more than 50 entrepreneurs from Wenzhou. The former "property speculator" Lin Ashin was at the forefront of Wenzhou. In March 2006, he established Shouhua Venture Capital, the first venture capital company initiated and established by Wenzhou private capital in Shanghai.As a venture capital company, Shouhua Venture Capital's first venture capital fund is not much, only 30 million yuan.The company's shareholders are mainly members of Lin Ashin and Shanghai Wenzhou Chamber of Commerce. Two months after the official implementation of the "Limited Partnership Law" in June 2007, Hu Xucang, chairman of Yueqing Youli Holding Group, launched Wenzhou Donghai Venture Capital Limited Partnership, with 8 private enterprises and 1 natural person in Yueqing as shareholders.According to the public information at the time, Donghai Venture Capital planned to raise 500 million yuan, mainly investing in the equity of Wenzhou companies that were expected to go public.After the company's packaging is listed, "Donghai" will benefit from the transfer of equity. In November 2007, several promoters of Donghai Venture Capital established a new venture capital company——Wenzhou Huanya Venture Capital Center, which raised more than 1 billion yuan and had more than 20 shareholders. In 2008, Chint Group, the largest private enterprise in Wenzhou, registered and established Yunshan Investment Management Co., Ltd. in Shanghai, and launched the Yunshan Fund. Since then, similar venture capital companies have appeared frequently in Wenzhou, and their business scope includes investment, consulting and guarantee business in real estate, construction, medical care, tourism and other industries.According to statistics from Wenzhou's industry and commerce department, nearly a hundred investment companies supported by Wenzhou's private capital have been registered. A large number is not necessarily a sign of prosperity, sometimes it is a sign of chaos.With so many venture capital companies appearing in Wenzhou in a short period of time, the impetuousness of capital can be seen. In August 2007, only 7 months after its establishment, Wenzhou Donghai Venture Capital Co., Ltd. broke up due to disagreements between Wenzhou investors and fund managers.The contradiction between the two sides seems to be doomed.One side is fund managers who are good at measuring corporate profitability through corporate financial statements; the other side is investors who have worked together from one family business to another. They are confident enough that they know how to grow private companies.The irreconcilability of the two ideas is obvious. However, compared with Donghai Venture Capital's "unpaid ambitions", more Wenzhou venture capitals showed rational light: In August 2007, Hu Yungeng joined Chint and was responsible for the establishment of Yunshan Fund, and the business development was impressive. At the end of 2007, Yunshan Fund reached its first business, investing 92.4 million yuan in Shanxi Sunshine Coking Group, a leader in the coking industry.According to the development trend of the industry, the operating conditions of the enterprise and the expectations of the Chinese securities market, Yunshan Fund has calculated the rate of return of this project. It is conservatively estimated that the average annual investment rate of return is about 60%. On November 6, 2008, Shouhua Venture Capital and Shenzhen Orient Huifu Venture Capital Management Co., Ltd. jointly established Orient Shouhua Wenzhou Fund. Soon after its establishment, it acquired a commercial real estate project in Beijing.This real estate business located in Zhushikou, Beijing, is positioned as a lifestyle and leisure plaza, mainly involved in office buildings, hotels and restaurants.Although housing prices were in a downward trend at that time, Lin Ashin had no doubts about the situation of Beijing's real estate.Sure enough, housing prices in Beijing soared again in 2009. Hang Seng Asset Management, led by another Wenzhou businessman Huang Weijian, manages billions of funds. "Hang Seng" is not keen on the real estate industry or long-term projects like coal mines, but tends to be a sustainable industry. In March 2007, Hang Seng Assets acquired Zhejiang Inspur, an enterprise that produces mosquito coils with carbon powder and sawdust, and carried out technical transformation of its production line.Since then, the new product has seen a 30% reduction in production costs and a 25% increase in burn time.Mosquito coils are a rigid demand of people and are not affected by the financial crisis. Although the profit is only 7%, the huge output can still allow Inspur to maintain an annual sales of 600 million to 700 million yuan. Not afraid of the impact of the financial crisis, Hang Seng Assets chose to continue introducing new projects after 2009.Based on the country's 4 trillion yuan investment to stimulate domestic demand, Huang Weijian continues to be optimistic about infrastructure investment, especially the construction of wharves and ports. He said: "When the economic crisis comes, the investment cost of infrastructure construction is also relatively low, because the price of raw materials has dropped sharply. .” Venture capital is not an investment in the ordinary sense. It requires professional managers to gather the surplus funds of enterprises and provide financial support to some high-tech and high-profit enterprises to help them develop and grow in order to obtain high returns on investment.In this sense, Hang Seng Assets is a venture capital in the true sense, and it is also a venture capital with unique advantages.While possessing sufficient funds, it has the ability to transform technology and have a forward-looking vision. This is the development goal of Wenzhou Venture Capital, and it is also a solid weight for it to lead the direction of investment. In China, venture capital is a "young" industry whose development began in the 1980s.In Wenzhou, venture capital is an emerging industry, still in its infancy and exploratory stage, which will inevitably be mixed with irrationality, impetuousness and impulsiveness. In July 2010, in order to further guide the flow of private capital in Wenzhou, the Wenzhou Municipal Government issued the "Implementation Plan for Establishing Wenzhou People's Equity Investment Fund".As of October 2010, the investment of Wenzhou Capital in the field of venture capital has reached about 150 billion yuan.Now, with the official implementation of the national "Limited Partnership Law", the legal environment required for venture capital has matured.On the other hand, more than 300,000 small and medium-sized enterprises in Wenzhou are also in urgent need of transformation and development. The time is ripe to adjust the structure of traditional industries and cultivate emerging industries. Wenzhou capital, which has been looking for a way out, finally has the best stage to exert its strength. The maturity of the domestic capital market has removed the biggest obstacle for Wenzhou capital to enter the venture capital industry.After time has passed, Wenzhou Venture Capital will become more rational. It will not only provide convenience for more enterprises that need funds, but also open a door for Wenzhou's huge private capital to quickly gain wealth. Since 2010, various PE training classes in Wenzhou have emerged one after another, and the venues are full. There is a joke saying: "The current Wenzhou boss is either in a venture capital company or in a venture capital study class." Many people even put the factory Or sell the boat, put all the money into a PE, and expect to double it a year. In 2010, only Wenzhou capital that entered the field of venture capital reached 150 billion yuan.These investments involved 300 venture capital institutions.In addition to venture capital, Wenzhou Capital's investment in the financial sector has reached 100 billion yuan, and the investment in other fields is also close to 100 billion yuan. In other words, 350 billion Wenzhou private capital—nearly half of Wenzhou’s total private capital—has entered the financial and venture capital fields. In January 2011, the Wenzhou Municipal Office of Finance organized the "Wenzhou People's Equity Investment Fund No. 1" road show.This fund has an initial investment of 300 million to 500 million yuan, of which 10% is contributed by Wenzhou Municipal Finance. As a government fiscal guidance fund, the total investment fund size is about 3 billion yuan. At the same time, the smart Wenzhou people have still found those real industries with promising development prospects under the background of "depression" in the industry.Petrochemicals, IT, bioengineering, and new energy have all become the investment choices of Wenzhou people. However, it is obviously not enough for half of the Wenzhou capital to find a way out, and it is also difficult to rely on Wenzhou private capital to solve the remaining general capital.The necessity of the government's power to control Wenzhou's private capital, a capital beast with a scale of up to 750 billion, cannot be ignored. Introduce institutionalized and standardized private capital management methods; guide private capital to achieve effective docking with fund demanders along the institutionalized policy path; further improve the laws and regulations on the operation of private capital; strengthen the means and measures of private capital management, and curb private capital. Blind operation of capital; confirmation of the legal subject status of private capital at the legal level...Wenzhou people and their capital are looking forward to the power of the government. Private capital hopes to be "recruited" by the government.Wenzhou people who have become rich hope that someone can guide them to invest their money in those sunny areas; they hope that someone can conjure for them an "industry guidance catalog" suitable for investment; they hope that someone can publish clear private capital for them Access standards and access time limits; they hope that the government can relax restrictions on the shareholding ratio of private capital; they hope that the government can moderately allow private capital to participate in the construction of key industry projects... Expand the pilot areas of village banks and small loan companies; allow private capital to participate in loan companies; encourage foreign private capital to invest in their hometowns; support private capital investment in high-tech and environmental protection industries; open up opportunities for private capital to invest in large-scale infrastructure and resource projects Gates; railways, subways, bridges, highways, oil, rivers, scenic spots... All these fields that need money and can make money, private capital hopes to enter. As I said in my speech at the 2008 China Benshi Venture Capital and Private Equity Investment Forum: "Although under the influence of the global financial turmoil and economic recession, Wenzhou's manufacturing industry has entered the winter and is facing a certain survival crisis. , but at the same time, I can assert that the spring of Wenzhou’s venture capital industry has come.”