In an interview with the "Daily Economic News" reporter, Yang Youmin, secretary general of the Hangzhou Furniture Chamber of Commerce, introduced that the current financial difficulties in the furniture industry in Hangzhou have been basically smooth through the coordination of the government. He disclosed, "Hangzhou's furniture foreign trade in the first half of this year increased by 12% year-on-year ." Under the coordination of the government, the temporary financial difficulties may be temporarily quelled. However, how to weigh the pros and cons of the mutual insurance system is worth pondering. Crisis caused by mutual insurance "This crisis is a typical large-scale crisis caused by mutual insurance of enterprises." On April 12 , Huang Kunming, secretary of the Hangzhou Municipal Party Committee of the Hangzhou Furniture Chamber of Commerce, said the above remarks are the description of this crisis by the Chamber of Commerce. Tianyu Construction was the first of mutual protection dominoes to fall. Zhejiang Tianyu Construction Co., Ltd. has a registered status of Dongyang, Zhejiang with a registered capital of more than 80 million yuan. Last December 20, the day Yu Jiangsu points under construction companies for illegal fund-raising lead to civil proceedings, the court filing on the same day. After that, all accounts and real estate of Tianyu Construction were successively frozen and sealed by the court. By the end of the year, Tianyu Construction formally filed a bankruptcy application with the Dongyang City Court. The total amount of loans of Tianyu Construction itself is not huge- 140 million yuan in the construction bank loan , but 90 million yuan of which is mutually insured with Jiayi Group and its affiliated company Huazhou Group. Jiayi Group is located in Xiaoshan, Zhejiang. The actual controller is Yao Ronghua. In 2011 , the sales revenue was 600 million yuan, and the bank's overall loan amount was 500 million yuan. Affected by Tianyu Construction's bankruptcy application, Jiayi Group's 90 million loans in CCB were uninsured , which triggered CCB to collect 50 million yuan from Jiayi Group. Jiayi Group and Huazhou Group were collectively collected by 115 million loans from multiple banks. yuan, involving China construction Bank Xiaoshan Branch, Bank of Ningbo, Bank of Beijing, Huaxia Bank, CITIC Bank, Bank of Communications, Agricultural Bank, Industrial and Commercial Bank, and 120 million yuan of overdue loans appear, involving Huaxia Bank, Beijing Bank, Guangdong development Bank, China Everbright Bank ,China Merchants Bank. In response to the liquidity crisis, Jiayi Group has borrowed nearly 200 million yuan from the private sector . Affected by the Jiayi incident, Zhejiang Rongshi Industry Group also encountered a credit crisis. Rongshi Group and its subordinates Hangzhou Rongye Furniture Co., Ltd. and Zhejiang Rongye Furniture Manufacturing Co., Ltd. are facing great pressure from banks to collect loans. Zhejiang Rongye was received a loan of 30 million yuan (including 13 million yuan) by the Bank of Beijing Pinghai Sub-branch in February this year. One week after the successful loan transfer, it was unilaterally recovered by the Bank of Beijing), Hangzhou Rongye received a loan of 15 million yuan from Wenzhou Bank (of which 1 million yuan was recovered early), and Bank of Communications received a loan of 7.5 million yuan. The normal liquidity of the enterprise is on the verge of breaking. . According to preliminary statistics from the Hangzhou Furniture Chamber of Commerce, the crisis involved more than 10 billion yuan in related debt , more than 100 companies in the industry , 23 banks, and more than 50,000 people in the furniture industry . The crisis further spread out of the furniture industry . Many large enterprises such as Tiger Brand Holding Group, Zhongye Holdings and Zhengshi Construction also faced difficulties due to the mutual influence of mutual insurance circles. Rongshi Group is the main mutual insurance company of Tiger Brand Holding Group, with a total loan guarantee of 200 million yuan. After the capital chain of Jiayi Group was broken and Rongshi Group was drawn off, Tiger Holding Group was implicated as a mutual insurance company. The relevant bank made it clear that the loan will not be renewed after the loan expires. However, the tight capital chain of Tiger Brand Holding Group also stems from its acquisition of Zhejiang Hongfa Energy Investment. "Quality Customers" Credit Crisis The characteristics of this crisis, in addition to "triggered by mutual guarantees of enterprises," mean that leading enterprises in medium-sized to large-scale industries have encountered a credit crisis. Yang Youmin, secretary general of the Hangzhou Furniture Chamber of Commerce, told reporters from "Daily Economic News" that Zhejiang's furniture market ranks second in the country, second only to Guangdong. Jiayi Group's sales revenue in 2011 was 600 million yuan, tax was 80 million yuan, and there were more than 900 employees . Huazhou Group paid RMB 55 million in taxes in 2011 . Rongshi Group and its affiliated companies have a total assets of 946 million yuan, sales revenue of 1.5 billion yuan in 2011 , tax payment of more than 40 million yuan, and more than 3,000 employees. Zhongye Holdings and its related companies have a total enterprise scale of 1.4 billion yuan and tax payment of more than 50 million yuan. Tiger Brand Holding Group is mainly engaged in the transmission and distribution manufacturing, with a combined total assets of 2.85 billion yuan. It has 15 wholly-owned (holding) enterprises and has been ranked among the " Top 500 Chinese Private Enterprises" for 5 consecutive years . In an interview with local media, Chen Ronggui, chairman of Rongshi Group, bluntly stated that the company's current market expansion is not bad. The orders for the large aircraft office furniture project and the office furniture project for the Guangdong Provincial Library are all over 20 million yuan; IKEA's one-year order also exceeds 200 million yuan. The company's main business is okay. The current corporate crisis mainly stems from the crisis brought about by mutual insurance companies. The Hangzhou Furniture Chamber of Commerce urgently submitted to the Hangzhou Municipal Government "About the sharp deterioration of the financial environment of the Hangzhou furniture industry, and urgently requesting the Hangzhou Municipal Government to coordinate and help enterprises to get out of trouble", "The Emergency Report on the Credit Crisis of the Hangzhou Furniture Industry", "Report on Increasing and Accelerating the Current Crisis Management of Hangzhou's Furniture Industry". The Hangzhou Furniture Chamber of Commerce believes in the report that, given that the main businesses of the above industries are normal and the level of assets and liabilities is basically reasonable, it is just a bank credit crisis triggered by mutual insurance. The chamber of commerce requests governments at all levels to come forward to coordinate and organize enterprises and banks to negotiate solutions together. Yang Youmin told the reporter of "Daily Economic News": "The business of our chamber of commerce is very normal. Many companies have good cooperation with the world's top 500 companies. We just caught a cold because other companies sneeze. But you can't Judging that we have lung cancer. "He revealed that in the first half of this year, Hangzhou's furniture foreign trade increased by 12% year-on-year . February 28 afternoon, Xiaoshan Economic Development Board convened 13 banks to discuss Jiayi Group credit issues. March 29, Xiaoshan district government once again thematic coordination Jiayi Group and the new Island furniture loans related matters. According to the minutes of the Xiaoshan District Government meeting, the meeting believed that despite the overdue loan situation, the two companies had higher asset quality and better organization and management. Dealing with the crisis was a matter of "Xiaoshan ’s social stability and maintenance of the financial ecological environment. Banks act in a concerted and proactive manner, and do a good job in overdue loan transfers in a timely manner. On the afternoon of April 6 , the government of Gongshu District also held a bank-enterprise symposium on the credit crisis of Tiger Brand Holding Group, with 11 banks and 6 mutual insurance companies participating. The reporter saw from the forum memorandum that the Tiger Holding Group urged the banks not to take loans or reduce loans. The participating banks also expressed that they will communicate with their superiors to help high-quality customers overcome difficulties. Yu Chenghua, chairman of Tiger Brand Holding Group, was unwilling to disclose too much to the reporter of "Daily Economic News" yesterday, only saying that we are very helpless, "but the government is very supportive of us and comes forward to coordinate with banks." Yang Youmin told the "Daily Economic News" reporter that the overall operation of the furniture industry is normal, but because Tianyu Construction accidentally filed for bankruptcy, the furniture companies that mutually insured with it encountered the difficulty of the capital chain. After the government's coordination, the situation is generally controllable. Difficult to guarantee, difficult to guarantee After the coordination of government, enterprise and bank, the credit crisis of the furniture industry can be temporarily quelled. On the afternoon of June 20 , the Zhejiang Provincial Finance Office convened the heads of various institutions to hold a special meeting on "Improving the Financial Development Environment and Ensuring Stable Economic Growth". The meeting was chaired by Zhu Congjiu, the former assistant to the chairman of the China Securities Regulatory Commission and the new vice governor of Zhejiang Province. At the meeting, many speakers mentioned the "guarantee". Li Hong, deputy governor of Hangzhou Center Sub-branch, said that in the second quarter, the capital chain breakage incident still occurred, which gradually exposed and spread the risks of joint insurance and invisible mutual insurance of enterprises, and the willingness to guarantee between enterprises decreased; some guarantee companies have appeared Insolvency of assets and shrinking business; the trust between banks, enterprises and guarantee companies is also affected. The problem of difficulty for borrowers to guarantee is becoming increasingly prominent. The entire financing guarantee system is facing greater pressure and may increase the capital chain of some enterprises pressure. Li Hong specifically mentioned that, according to monitoring, 60% of the companies that have been insured since May were due to difficulties in funding after guaranteeing compensation for other companies. Han Yi, director of the Zhejiang Provincial Banking Regulatory Bureau, said that due to factors such as insufficient confidence in the furniture market , fermentation of mutual insurance risks, blind diversification of enterprises, and involvement in private lending, some companies have caused capital chain problems. He specifically mentioned that nearly 40% of Zhejiang's corporate loans are mutual guarantee loans. At the meeting, Li Hong revealed that the partial credit environment has not yet been restored, which is highlighted by the rebound in non-performing loans. In late May, non-performing loans 67.28 billion yuan, Zhejiang Province, an increase of 18.14 billion yuan over the beginning. In addition, a bank governor indirectly revealed at the meeting that as of the end of May , the NPL ratio of the province's joint-stock commercial banks was 1.34% , and the NPL ratio of the province's financial institutions was 2% . Yang Xubiao, executive deputy mayor of Hangzhou, said that if there are difficulties in the current capital chain, banks should increase their disposal, and also hope that a few banks will focus on the overall situation and work together to support enterprises to help themselves. Biological Microscope,Monocular Biological Microscope,Student Medical Lab Microscope,Economical Biological Microscope Ningbo Huaguang Precision Instrument Co., Ltd. , https://www.hgopt.com
A construction company in Dongyang, Zhejiang Province, unexpectedly filed for bankruptcy, causing the Hangzhou furniture industry to face a deteriorating financial environment and bank loans, resulting in financial difficulties for the entire industry and affecting other industries. The cause of this strange phenomenon of "others sneezing and catching a cold" is the mutual insurance system.