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When Wenzhou bosses flee [Copy link] 中文

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Post time 2014-1-13 14:30:15 |Display all floors
THE east China city of Wenzhou is battling its own subprime crisis after seven local business owners fled recently, leaving thousands of employees in a state of shock and enormous unpaid loans in hundreds of millions of yuan.

Most of the runaway bosses who have disappeared since September 12 are in the manufacturing industry, according to today's National Business Daily. Each of them had borrowed hundreds of millions of yuan from banks and private creditors.

Subprime lending in Wenzhou, the cradle of China's private economy, has been booming since the country tightened its money supply late last year to curb soaring inflation. State-owned banks are ordered to stick to a mandatory loan-to-deposit ratio and are reluctant to offer loans to small firms like those in Wenzhou over default risks.
The closed door to bank borrowing has forced some business owners to turn to private lenders, mostly illegal, despite the higher costs of their loans.

But when their business failed to perform as expected and it became obvious that the bankrupt business owners would not be able to pay their debts, some decided to flee.

Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:31:29 |Display all floors

the street is left obsolete
Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:32:08 |Display all floors

Wenzhou bosses vow to have a comeback
Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:33:07 |Display all floors

The pressure of paying back the load is mounting
Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:33:51 |Display all floors

There are more and more run-away bosses
Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:34:42 |Display all floors

The factory was destroyed by the debtors
Life is hard; it's harder if you're stupid.

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Post time 2014-1-13 14:35:25 |Display all floors

"If you don't pay back my money..."
Life is hard; it's harder if you're stupid.

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