the old republic commendation power leveling If Dong Shunsheng reflects the entrepreneur's quality

Unprofitable State industries in transition, people fall illnesses Wenzhou burst out of the latest case, show the aggressive expansion of private enterprise is at stake. This type of companies have to rely on their own strength out danger of the besieged city. Wenzhou economic risks of a deeper level. Loan-related disputes, Wenzhou State education Holdings Limited (hereinafter referred to as State group), Chairman of Dong Shun3rd criminal arrests this afternoon, Wenzhou has officially entered the State group of private lending case judicial proceedings. Vertical group of today the outbreak of crises is not. On October 31 last year, fostering people to the public announcement of the Group's inability to repay debts. On November 5, the vertical assets reorganization of people posted 3 scenario: first, debt-for-equity, creditor debts into its Shanghai State investment company, limited, Ordos, Inner Mongolia coal mine ownership; second, amortization, 5 years repayment of debt, repayment of principal in each 20%, last 1-year repayment of principal, interest, interest rates in Bank loan interest rates over the same period terms; if it is still on time repayment after the expiration, will auction assets to repay; three from xuyi, Jiangsu Bai, puts its subsidiary Thai estate limited real estate to be built. But on February 3 this yearLegislative punishment of one group to be arrested, that debt and asset restructuring failed. "Li-model" is the enterprise development are doomed to a crisis mode. Such enterprise finance based on high interest loans, cannot withstand change of policy and business cycles. Standing in civil high interest recruiting store has over a dozen years, huge amounts of loans. Earlier, was revealed, head of one of the companies involvedPrivate lending billions of. In taishun County official says, currently covered by the loan amount in the statistics, involving the number has not yet been made clear. There is no doubt that 50% per annum capital borrowing of about a dozen years, after several economic cycles and macro-control of baptism and holds up to the present, more like a miracle. We cannot expect a normal society, the economic miracleTerm exists. Legislative measures for the people's response to the crisis was to ever higher incomes and financing, through the diversification of industry looking for profit opportunities that may arise. Before the incident, the company has a school, a company, a total of 36, located in Inner Mongolia, Jiangsu all over the country, and the scope of education classes, such as construction star wars the old republic commendation power leveling, real estate development, investment and mining investments. It is clear that the enterpriseHas deviated from the normal track, more like a gambler in control of the company. When the fatal blow came at the same time, Li group come tumbling down. Head of the company a has detailed the three causes of the crisis. First, tightening macroeconomic regulation and control policy, makes the company sold fixed many real estate projects, funds cannot return. Second, is the company in Ordos, Inner Mongolia and other placesInvestment of the coal mining industry, due to the new "limited production" policy, expected return on objective cannot be achieved. And the 3rd, the person in charge said, "people's money is tight, throughout October to borrow money. Three of these grounds generally tera power leveling, are tightening, monetary tightening, resources prices. Triple blow at the same time, to high interest money to maintain multiple development and EnterpriseFault-free living space. I some sympathy for fostering people group Chairman Dong Shunsheng, allegedly committed suicide he had twice failed to succeed, in career in long-term borrowing to maintain credit, Dong Shunsheng crisis once said, "I would really like to kneel in front of taishun of fellow countrymen, said a sentence from the heart in good faith, I love taishun people, give me an opportunity to earn back the money, give you！ "" I love my talent, I love my students, I love my teacher! "Under these words although desperating representations of words, but believe that the old school, with entrepreneurs of foreign identity did not walk away, says is not all lies, slander. However, not much information on the case, it is difficult to make accurate judgments. You must ask is, as the largest enterprises, higher incomeFinancing for a dozen years and is safe, why have helped local governments in order to maintain the local economic development? If Dong Shunsheng reflects the entrepreneur's quality, credit has been the home of fellow countrymen approved in a dozen years, why not be given parities within a dozen years for the loan, was after a dozen years of discrimination was strangling the high interest rates on financing this scary tree.A market economy of the Holy Land, in a dozen years period of basic financial system of market-oriented enterprise, who is a tragedy? If the closure of private industry in taishun one by one, last enterprises go out of China's economy depends on dilemma? Under the big pressure to avoid insolvency, take only vertical group? We look at the total assets of rapid expansionAluminum, financial institutions and other businesses, why the former profits so low, Roe was so low, and financial institutions profits are so high, why the rush to refinance? Its nature and the legislative group of what difference? There is no. Just could not get financial endorsement within the system of State group embarked on the road of illegal the old republic commendation power leveling, while the latter always to cheap capital, for moreResources by his Government survived. It is fostering people's tragedy, this is the tragedy of Dong Shunsheng, is the tragedy of taishun, this is a tragedy of Wenzhou, this is the tragedy of China's market economy. (Editors: Wen Jie)