Latest News:  
Beijing   Overcast/Sunny    6 / -2   City Forecast

People's Daily Online>>China Business

Reform plan for cash-strapped Wenzhou gets nod: report


11:51, March 18, 2012

BEIJING, March 17 (Xinhua) -- Wenzhou has been given the green light to turn itself into an incubator for private capital distribution, China Securities Journal reported Saturday.

The city government's proposal to build itself into a pilot zone of financing services to help small businesses has been approved by seven central ministries and will soon get the State Council's nod, the paper under Xinhua said, citing unnamed sources close to the matter.

Wenzhou will set up a batch of non-governmental financing institutions on a trial basis, including micro-finance companies, private capital management companies and registering centers for private financing, a local official said when the city filed the proposal last October.

The proposal, which is aimed to expand financing channels for small and mid-sized businesses, came after a spate of credit-starved local private companies went bust last year.

Small businesses in Wenzhou had to borrow from underground lenders that charged interest rates more than 10 times the central bank's benchmark rates, after Chinese government tightened liquidity to clamp down on runaway inflation in 2011.

High borrowing costs pushed many companies into bankruptcy, and a string of business owners have disappeared or committed suicide, invalidating debts owed to individual creditors.

In the government work report delivered last week, Premier Wen Jiabao said China would lessen tax burdens on small and micro-sized businesses and increase credit support to them.


Leave your comment0 comments

  1. Name


Selections for you

  1. Chavez returns to Venezuela after surgery

  2. Sotheby's Chinese art works exhibition

  3. DPRK's satellite launch plan 'provocative': US

  4. Monkey King swings into New York exhibit

Most Popular


  1. Obama brings new trade case against China
  2. Giving is an aid to prosperity
  3. Rare earth case reveals US hypocrisy
  4. What international order should world build?
  5. Is morality improving or declining in China?
  6. China's development contributes world economy
  7. China's diplomacy needs courage and strategy
  8. Death penalty does not hold answer to corruption
  9. Socialist democracy to illuminate China's future
  10. Truth about Tibet is slowly coming to light

What's happening in China

Cold front, heavy fog to sweep China

  1. Plastic surgery needs higher standard
  2. Fog grounds flights in N. China
  3. Muliti-pileup causes death on E. China highway
  4. 300 people evacuated after oil warehouse fire
  5. Villagers concerned about sinking railway

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai