Too Many Companies Want To Finance. Why?

China's financial risks lie mainly in the manufacturing industry's high debt, excess capacity, high inventory of real estate, high debt and high leverage. In addition, a large number of social financing, such as usury and private lending, have also increased the risk of financial risks to a certain extent.

On the one hand, it is often overlooked that some domestic enterprises borrow large amounts of foreign debt.

According to the bank for International Settlements, the size of foreign debt borrowed by Chinese enterprises is about 1 trillion ~1.2 trillion dollars, which also has the possibility of financial risk.

Today, when we talk about the future of finance, we must focus on whether we can keep the bottom line of financial risks.

I think all of you here, Chinese entrepreneurs and investors need to rethink profoundly. In the past, we used to rely heavily on high leverage to expand with a high leverage ratio. What would happen after expansion?

Expansion can, of course, expand your market share and enhance your voice in the industry.

But on the other hand, the greater possibility of expansion will bring a bunch of bad assets, a pile of excess capacity and a pile of stocks.

I recently visited some three or four line cities, and many uncompleted residential buildings in Shandong, Hubei and Hunan began to emerge. Is there any financial risk behind this phenomenon? I think we should discuss this issue today, and everyone must reflect deeply.

My second concern is an interesting phenomenon - you will find that almost every successful business in China today wants to finance, especially in China.

Almost none of the enterprises are engaged in finance.

I think this is a very unreasonable phenomenon, and it is not sustainable.

My view is very simple, no matter what it is.

Or Tencent, even if we think of the Internet and replace all the commercialized services nowadays, now that all commercial banks and hundreds of commercial banks are replaced by Internet Co, what can it do?

Why don't our Internet companies take the money to study the most advanced technology in the world? You have to finance and create a lot of platforms like P2P.

Of course, the innovation consciousness is certainly positive, but finance is also a highly professional technical activity. So, do you have enough means to supervise and guard against the risks?

I am now worried that some banks may return to the late 90s and the beginning of this century: the bad rate is more than 10% or even 20%.

High debt and high leverage, the liabilities of iron and steel enterprises exceed 3 trillion and 300 billion yuan.

How does the whole industry lose money?

The company has the lowest return rate of 15%. Where can we earn this money?

So I don't think we should discuss the convergence and divergence of Internet Finance and traditional finance today. We need to think about what kind of state China's finance is in the future and how to avoid potential financial risks.

In my research, I observed a very interesting and strange phenomenon: there are many listed companies, many of which are state-owned enterprises, and a large part of the main businesses of enterprises are all in deficit.

So what do they earn? They rely on non main businesses. A large part of them is finance, which is called the two dealer of funds. But what kind of a phenomenon is it?