To Prevent Private Credit Risk Upgrading &Nbsp; Fiscal And Financial Measures To Sell.

nongovernmental

Yesterday, Premier Wen Jiabao chaired a State Council executive meeting on 12, to study and identify financial, fiscal and tax policies and measures to support the development of small and micro enterprises.

In terms of finance, the credit support for small and micro enterprises should be increased to appropriately raise the tolerance rate of bad loans.

In terms of Finance and taxation, we should raise the threshold of value-added tax business tax for small and micro enterprises, and cancel some enterprises' fees.

Before the risk escalation, governments and scholars at all levels are trying to contain this non-governmental credit risk into "China's sub prime mortgage crisis".

Ningbo, Ordos bright red light at the annual risk.

With the approaching step of the year, the risk of private lending accumulated before the outbreak of risk in Wenzhou began to emerge one after another.

A few days ago, Ningbo again broke out an electronic processing enterprise seven Xin Qi Technology Co., Ltd. due to private lending led to the capital chain rupture.

Liu's boss has failed in the "run" and has been controlled by the local authorities. The amount of debt involved by the company is more than 2 billion yuan.

Seven Xin Qi group's total assets amounted to RMB 1 billion 600 million, and there was a rumor that the owner of the surnamed Liu caused a deficit due to diversified investments involving real estate.

The Ningbo municipal government has set up a special working group to enter the enterprise and work hard to maintain stability. Its initial plan may be bankruptcy protection.

What is startling is the news that the business involves nearly 1 billion 200 million of the 19 banking financial institutions in Ningbo, including 247 million 360 thousand of the Bank of China, 165 million 990 thousand of the Construction Bank, and 164 million of the Bank of communications.

In many creditor banks, China Merchants Bank's loans account for a relatively large proportion.

In addition to bank loans, the company also involves about 800 million of private lending, and the highest interest rate among private borrowers is around 135%.

However, this is not the first case to break out. As early as half a month ago, Ningbo's famous clothing enterprise Tang Ying costume owner ran away from the bank and private lending funds for 200 million yuan.

Fenghua related working group has been stationed in "Tang Ying" to perform its takeover duties.

The red light and the attention of Erdos, which had been paid much attention to before, were almost all of the "lending" of the Ordos because of the high profits of real estate and coal mines. The severity of Erdos was no less than that of Wenzhou.

Now, the capital lenders of Ordos are all in danger.

Yesterday, there were media reports that Ordos City is monitoring more than fifty million of the financiers, and strictly guarding against the risk of usury loan breakage.

Two risks must be prevented.

Spread to more areas, from private capital to the banking system.

There are still many private enterprises and private lending areas in China. However, no one knows how big the real scale of China's private lending market is and where the next dominoes are.

According to the research report released by UBS, if we borrow some historical estimates, the domestic private lending market should have at least 2 trillion, or even account for 10% - 4 trillion of GDP.

"A more important question is the extent to which private lending will affect the formal banking system, and even whether the problem will spread from one region to another. Whether panic and distrust of formal and informal creditors will lead to the freezing or withdrawal of credit funds in certain areas".

Wang Tao, chief economist at UBS, pointed out.

On the one hand, the banking industry has a direct exposure to private lending, and some private lending funds indirectly come from bank credit funds.

People's Bank of Wenzhou estimates that 10% of Wenzhou's private lending funds come from bank credit funds.

UBS believes that the scale of private lending is relatively small, and concerns about the direct impact of banking and the economy are exaggerated.

However, Wang Tao believes that the greater risk is the withdrawal and spread of credit funds.

When a company closures due to private lending, the debts of regular creditors and their suppliers will be affected. The fear and distrust of creditors may cause them to freeze new credit funds or even withdraw capital.

The squeeze of liquidity may trigger widespread bankruptcy in a sound enterprise.

"By the end of September, the risk of divestment has begun to increase significantly in Wenzhou.

Moreover, this has begun to worry the lenders of private lending in other regions, and this problem may continue to emerge in other parts of Zhejiang, Shanxi, Inner Mongolia, Fujian and Guangdong in the future.

Wang Tao said.

In addition, with the cooling of the real estate market and the weakness of exports, many family and business retail investors will be affected in the future.

Fiscal and tax measures

Local and central governments are helping and guarding.

Faced with the risk of continuous outbreaks, Wenzhou and the central government have taken various measures in the past 10 days to try to prevent the spread of the problem.

Although the Wenzhou government denied the allocation of 60 billion credit funds to solve the problem of private lending, but after Wen Jiabao went to Wenzhou during the national day inspection, the Wenzhou municipal government issued 200 million financial support, 18 billion bank credit increment indicators, and other related measures to set up the support fund, 25 banks in Wenzhou recently issued a joint statement on "no money and no pressure on loans", expressing support for the small and medium-sized enterprises under the predicament and stabilizing the entrepreneurial sentiment.

At the relevant coordination meeting, the government asked a number of banks to renew loans secured by Xintai group, requiring banks to renew loans within 2 working days after the maturity of the loans.

The bank and enterprise coordination group also made clear that because of the bank's unauthorized lending, stopping loans and deferred loans, the chain of enterprises' funds and loan guarantee chain were broken, triggering a chain reaction and serious incidents. It will be punished in the banking sector to support local development performance appraisal and local government support banks.

Ordos City has also begun to keep a close guard against the risk of the loan break of usurious usury, monitoring more than fifty million of the financiers. If the money is extravagant, it will take measures such as property freezing and payment.

The central government has also begun to introduce measures to support small and medium-sized enterprises.

Yesterday, Premier Wen Jiabao chaired a State Council executive meeting to study and identify financial, fiscal and tax policies and measures to support the development of small and micro enterprises.

In terms of finance, the State Council has asked commercial banks to increase credit support to small and micro enterprises under a single household credit of less than 5 million yuan.

We should gradually expand the debt financing of small and micro enterprises to expand financing channels.

In terms of tax policy, the enterprise income tax policy was reduced to half of the small profit enterprises and extended to the end of 2015.

Small micro enterprise loan contracts are exempt from stamp duty within three years.

Appeal

Liberalization of interest rate liberalization

Release private capital into the financial system

For private lending in Wenzhou, let it go its own way, I am afraid the risk will affect the real economy.

However, for those small and medium enterprises that use private lending instead of industry to engage in real estate investment, there seems to be no reason to rescue them, or even to regulate and combat them.

Lu Lei, vice president of Guangdong Institute of finance, thinks that many borrowers clearly know that the rate of return on 30%-40% is very small, but they still choose to loan money to usury, which is actually a speculative behavior, which is to quench poison and quench thirst.

"What I'm worried about now is that once the formal financial institutions are involved in solving the risk of private lending, the real risk will come."

Lu Lei said that the government must be cautious and prudent when it comes to policies.

Guo Tianyong, director of the China banking research center of Central University of Finance and Economics, said in an interview with our reporter yesterday that in the short term, the government's failure to introduce measures will lead to further spread of risks, but these measures are only temporary measures to prevent further outbreak of risks in the short term.

In the long run, a basket of radical measures is needed.

Guo Tianyong suggested that the long-term solution to "Ben" is to improve the current financial environment, gradually establish a market-oriented interest rate system, liberate private capital into the financial system, and further dredge the "barrier lake" of corporate lending channels.

Deputy director of the school Party committee of the Central Committee of the CPC Central Committee and Zhou Tianyong, a doctoral tutor of University of Science and Technology Beijing, also pointed out that the most fundamental two points for solving the Zhejiang problem are: first, we should liberalize the registration of small banks, legalize and standardize the black market funds; two, we are determined to reduce taxes and clear fees for small businesses.

"As long as the government abandons financial monopoly and allows private lending to be open and legalized, there will be no ups and downs, because the real market economy is a self balanced system, and people are free to exchange them based on cost and income."

Zhou Tianyong said.

"The key to salvation is not to save the speculators and usurers, but to take this opportunity to promote the legalization of private lending and the introduction of long-term support policies for SMEs.

It is forbidden to provide financial assistance to all private lending that may collapse in order to maintain stability, and not to include usurer in the rescue category, otherwise it will provide ammunition for the next greater risk. "

Ma Guangyuan, an economics professor of the Chinese Academy of Social Sciences, pointed out.