Development of financial markets can not escape the expense of industrial capital

 When accumulated by the main industry in the capital and the real economy is drifting away, and the headlong into the embrace of capital markets and the property market, the crisis has been dormant. Wenzhou people an insight into the private capital of the powerful, first started in real estate. Today, the real estate industry is still the first choice for capital investment in Wenzhou; property policy tightening in 2010 under the investment banking and private equity to become the new hot destination. Hundred enterprises in Wenzhou in 2010, half involved in real estate.

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In addition, private enterprises in Wenzhou, an unprecedented positive investment in financial shares, as of mid-2010, has 1361 shares of private enterprises at home all kinds of financial institutions, capital is about 70 billion. One question is, why do not investment industry? Manufacturing profits continue to be diluted is an important reason. Clothing, appliances and footwear industry, these three are in sharp decline in profits, the profits of the footwear industry can only be maintained at 1% -3%. Electric's profit fell 20% from the original to the current 7%, or even only 2% of small and medium enterprises. The contrast is real estate investment profits.

in our view, manufacturers of that this is related to the environment and the domestic market, rising raw material costs, labor costs, logistics costs, financing and environmental degradation are all reasons. External demand market environment over the past good times, everyone there is business to do, the problem exposed the obvious, but the financial crisis changed all that, coupled with deterioration in the domestic market, small and medium manufacturing enterprises in China to highlight the plight of out. China needs to deepen financial markets, of course, but if escape is the expense of industrial capital, that is a serious problem!