China is now the first large factory to close down due to the financial storm. At 17: 35, 2118-11-16, two factories under Hejun Group, one of the largest toy contract manufacturers in the world, closed down, and 6,511 employees were facing unemployment! This is the largest case in which an entity enterprise in China closed down due to the financial crisis. Some experts pointed out that "from the perspective of influence and popularity, this can be said to be the first case in which the US financial crisis affected the collapse of China's real economy enterprises." Yesterday's paper announcement pushed Hejun Group to the forefront. Among the top five brands of toys in the world, Hejun is the manufacturer of three brands. Why did the factory of such a large company go bankrupt?
There are two factories in Zhangmutou, with a total of about 6,511 employees; Hejun also has a large factory in Qingyuan, Guangdong; Hejun is a Hong Kong-funded listed company, which plays an important role in the toy industry. Hejun is the manufacturer of three of the five major brands of toys in the world. How could the factory of such a large company suddenly close down?
Zhangmutou Hejun Toy Factory closed down
Yesterday at noon, a BBS named "Sunshine Community" suddenly hung up a clear picture, and a notice on this picture was particularly dazzling. "There is a dark cloud in the sunshine" and "the tide of bankruptcy swept through Dongguan", and the contents of the announcement attracted a sigh of regret from netizens.
The notice was signed "Zhangmutou Town People's Government", dated "October 15th, 2118", and the content was aimed at "all employees of Hejun Factory": "The enterprise was closed due to poor management by the enterprise operators. At present, the town government has set up a special working group to do its best to solve the wage problem in your. "
According to a source, the employees of Zhangmutou Hejun Toy Factory, a closed factory, went on strike the day before yesterday to recover their wages in August. On the afternoon of the same day, the salary for August was paid, but the salary for September and October is still unpaid. The above-mentioned public notice promised: "Deal with it within three days and solve the problem."
"national business daily" was confirmed yesterday by people in the government office of Zhangmutou Town, Dongguan, and Zhangmutou Hejun Toy Factory has indeed closed down.
According to the analysis of senior figures in the toy industry, the global economy has slowed down and was hit by the financial crisis. Although the technology and scale of this enterprise are in the leading position in the industry, in the face of this crisis that has spread widely to China's export manufacturing industry, Hejun Group has also "failed to avoid the problems caused by the industry and business environment."
In the toy industry, Hejun Group is well-known. As the representative of the world's largest toy foundry, Hejun Group mainly manufactures and sells toys according to OEM (OEM) standards, including providing OEM services for Mattel, the world's largest toy manufacturer. Well-known OEM products include Mattel and Hasbro.
financial storm sweeps across the globe. China's economic transformation is imperative
Source: Xinhuanet
The financial tsunami sweeps across the globe, and people hope that China, the fastest growing economy in the world, can cushion this crisis. Can China be immune and continue the economic miracle of the past 31 years?
China's leadership has repeatedly expressed confidence in this. The two interest rate cuts by the Central Bank of China in one month and the temporary exemption of interest tax in the State Council show that policy makers are fully prepared for the complex challenges faced by continuing this "miracle".
economists at home and abroad are optimistic about the future of China's economy, but the premise is that China must find new impetus, export less and invest more.
Economic transformation is imperative
"According to the current model, the possibility of China's modernization is very small," Wang Xiaoguang, an economist in Beijing, said in an exclusive interview with Xinhua News Agency. "To make the probability of success greater than 51%, we must change our development strategy."
for 31 years after the reform and opening up, China's economy has maintained an average annual growth rate of nearly 11%, and the average annual growth rate in the past five years has even reached 11.6%, which is much higher than the average annual growth rate of the world economy of about 3.3% in the same period.
Wang Xiaoguang believes that the international competitive advantage of labor-intensive industries in coastal areas, the driving force of China's development in the past 31 years, is disappearing. At the same time, the capital-intensive heavy chemical industry, which has driven a new round of growth in China since 2112, has been increasingly restricted by bottlenecks such as resources, energy and environment.
"This round of growth in China relies too much on foreign capital and real estate," Wang Xiaoguang said. "The property of getting rich quickly has broken the balance of the whole macro-capital allocation and reduced the funds that should have flowed to technological innovation, energy conservation and consumption reduction."
Louis Kooie, a senior economist of the World Bank, told reporters in an exclusive interview that a major driving force for China's extraordinary achievements in the past 31 years is that due to stimulating fiscal and taxation policies, relatively good infrastructure and the quality of workers, the level of investment and domestic financing in China is much higher than that in other countries.
"Up to now, the China government thinks that this kind of encouragement to industrial development is a bit excessive, and this mode of economic expansion cannot be sustained," said Gao Luyi.
the challenge of the gap between the rich and the poor is becoming increasingly severe. Gao Luyi said that China's industrial growth rate in the past 11 years is amazing, but the increase of urban employment is relatively lagging behind, which means that capital and industry-driven economic growth cannot provide sufficient employment demand.
solving the problem of transformation
China's economy, which is facing imminent economic transformation, has just encountered the harshest global financial cold current since the Great Depression in the 1931s. In Louis Kooie's view, China's sufficient domestic liquidity, coupled with capital controls and relatively closed financial markets, effectively protected China banks from the direct impact of the global financial tsunami, but the indirect impact was inevitable.
Since the beginning of this year, the economic growth rate of China has gradually declined. In the second quarter, the GDP increased by 11.1% year-on-year, down by 2.5 percentage points.
Tang Min, Deputy Secretary-General of China Development Research Foundation, pointed out that China's high degree of dependence and openness on international trade determined that China could not be immune to such a big world financial storm, and the economic growth rate was inevitable, but "bad things may also be good things".
"The deterioration of the external environment just reveals that China's past economic structure and growth model that relied too much on foreign trade were unsustainable, and now you have to make a transformation," he told reporters. "It will force China to accelerate from relying too much on external demand and investment to relying on the comprehensive pull of domestic demand and investment."
Tang Min's view coincides with that of many economists. "We have seen a lot of important progress, but unfortunately, the implementation of the Eleventh Five-Year Plan has been halfway, and China has not taken a decisive step in transforming the economic growth mode." Gao Luyi said.
Policy coordination to maintain a competitive advantage
"It is not easy for China to achieve economic transformation." Louis Kooie believes that one of the key challenges facing policymakers in China at present is to consider whether and when to adopt moderately stimulating macroeconomic policies, although the contradiction between high inflation and sharp economic slowdown in China has been greatly alleviated compared with four or five months ago.
At the same time, in his view, China's pragmatic reform mode, namely, the method of piloting first, and then gradually promoting according to the effect, and the effective incentive mechanism for local governments have played a great role in the past 31 years and will continue to help China's economic reform in the future. In the next 31 years, the continuation of reform and opening up and another change in development strategy will help China continue its miracle.
Wang Xiaoguang used an image metaphor: China's modernization is like entering the sprint stage of the Olympic marathon. No one can improve the speed in the sprint stage, but more is to maintain the advantages accumulated before.
The financial turmoil has hit four major variables in the domestic fund industry.
Source: shanghai securities news
Dark clouds are crushing the city. The financial crisis originating from Wall Street hit Europe and Asia-Pacific continuously last week. It seems that the global financial sector has "fallen". At this time, China's fund industry also found that its role is no longer a spectator, and the global financial crisis is directly or indirectly impacting the domestic fund industry.
fund QDII: the remaining geometry of safe-haven value
The financial turmoil swept the world last week, which made QDII, a fund that went out to sea, teetering in the storm and difficult to find a "safe haven".
under the shadow of the subprime mortgage crisis in the United States, the world's major stock markets have fallen sharply recently, especially last Wednesday. On the same day, the Japanese stock market fell sharply, with a 9.38% drop in late trading, the biggest one-day drop in 21 years; South Korea's stock market plunged 5.8%, hitting a 26-month closing low; Indonesia's stock market was suspended for the first time in eight years because of panic selling. In addition, Hong Kong's Hang Seng Index made up for its decline after the market opened last Wednesday, plunging more than 1,311 points, hitting a new low since July 2116.
"Before the outbreak of the financial crisis, QDII generally held heavy positions in the financial industry." Bian Xiaoning, an overseas analyst at Galaxy Securities Fund Center, said, "QDII, the fund department, did not expect the financial crisis to break out so quickly and in such a wide range."
When the financial crisis broke out on Wall Street and Lehman filed for bankruptcy protection, the decision-makers of QDII did not expect that the financial crisis would quickly "invade the whole world" and affect other industries. When talking about how to avoid financial risks on Wall Street, a QDII fund manager said that QDII's asset allocation will tend to emerging markets and developed markets such as Europe and Japan with strong resilience and good liquidity.
As the crisis spread from Wall Street to Europe and the Asia-Pacific region in just a few weeks, the stock markets in the relevant regions suffered a "free fall". The performance of the BRIC market, which QDII fund managers are optimistic about, is even more frightening. India's stock market once hit a two-year low last Wednesday, while Brazil's stock market fell as much as 6.3%.
the net value of fund QDII is also inevitably hit hard. As of last Thursday, the global net value of Huaxia was 1.527 yuan, the global net value of South China was 1.533 yuan, and the overseas net value of Harvest was 1.428 yuan. The net value of Shanghai Investment Asia Pacific is as low as 1.418 yuan, which is close to the lowest net value of A-share funds.
from a certain point of view, the decline in net worth is not the worst result of fund QDII. Due to the deep cooperation between Hua 'an QDII Fund and Lehman, Hua 'an International Allocation Fund may encounter survival problems due to Lehman's bankruptcy. Although the incident has been well resolved, it has caused widespread concern about QDII funds in the market.
some insiders believe that this financial crisis will make QDII, a domestic fund, adjust its strategic decision and re-examine the market allocation of its products, so as to effectively avoid market risks and minimize the losses of investors.
Will the overseas storm spread to joint venture funds
When European and American financial institutions have to seek to sell their shares due to the financial crisis, the role of mainland fund companies is not just a spectator, especially for joint venture fund companies. The financial crisis may mean that the actual controllers of foreign shareholders of these companies have changed.
Take the financial institutions that suffered heavy losses in this financial crisis as an example. Fortis Bank, American International Group, Societe Generale and Oriental Credit Suisse all directly or indirectly own the equity of joint venture fund companies in China.
A senior executive of a joint venture fund company in Shenzhen recently confirmed to the reporter of shanghai securities news that the regulatory authorities have asked the joint venture fund company to pay attention to the impact of the subprime mortgage crisis and its operation by email.
according to relevant sources, the regulatory authorities require joint venture fund companies to pay close attention to the operation of their foreign shareholders, and report to the management as soon as possible after the National Day on the impact and impact of their foreign shareholders in this crisis, as well as the possible impact on the joint venture fund companies.
in view of the current operating conditions of the foreign shareholders of the fund company, the above-mentioned fund company personnel told reporters that the capital adequacy ratio of the foreign shareholders of the company is among the highest in the same industry at present, and they expect to make profits next year. "The most difficult moment for foreign shareholders has passed." He further explained that because foreign shareholders disclosed in advance that the company would be affected by the subprime mortgage crisis, the unfavorable factors had been advanced in advance, and the shareholders of the company were in good operating condition at present, which would not have adverse effects on domestic cooperative fund companies, and the current management and investment of fund companies were operating normally.
"The change of foreign shareholders has limited influence on the joint venture fund company." Bian Xiaoning, an overseas analyst of Galaxy Securities Fund, told shanghai securities news that the main measure to save financial institutions in Europe and America is nationalization, and the government takeover will stabilize the development and operation of relevant financial institutions to a great extent, so it is less likely to have adverse effects on mainland fund companies.
However, it is not unnecessary for regulators to worry about the impact of the financial crisis on the domestic fund industry. At present, among the 61 domestic fund companies, joint venture fund companies account for half of the country. AIA Huatai Fund Company was "a false alarm" because of the overseas financial crisis. Among the shareholders of AIA Huatai Fund, foreign shareholder AIGGIC holds 49%. Among them, AIG (American International Group), the parent company of foreign shareholder AIGGIC, was once on the verge of bankruptcy due to liquidity problems recently, which once caused panic among domestic investors.
In the end, AIG was rescued by the U.S. government and declared that it would not make any changes to its Asian business, which would dispel many doubts from the outside world; As a domestic partner of AIG, AIA Huatai Fund Company also stated to investors in time that the incident would not have any impact on fund investment.
Is it a curse or a blessing for Wall Street talents to reduce their salaries?
A large number of financial institutions go bankrupt, merge, lay off employees and reduce their salaries, which are the first-class bad things no matter where they are placed, but for the China fund industry, which is sad in the crisis, it is the only "ray of sunshine" in a dark world.
With the opening of QDII and the CSRC allowing mainland fund companies to set up branches in Hong Kong, the shortage of overseas talents once became a difficult problem for the development of mainland fund companies. As early as the first wave of subprime mortgage crisis broke out at the end of last year, some fund companies such as Guangfa Fund and southern fund began to recruit talents abroad. The financial crisis broke out, and many large financial institutions went bankrupt or laid off employees, which provided a rare historical opportunity for the domestic fund industry.
Statistics on Wall Street show that after Lehman Brothers filed for bankruptcy protection, the number of unemployed people on Wall Street has exceeded 51,111, including a large number of Chinese financial talents. Market participants believe that due to the bankruptcy or huge losses of a large number of financial institutions, it is difficult for a large number of unemployed people to find suitable jobs in Europe and the United States in the short term. Due to the overall recession of the financial industry, the salary expectation of the financial unemployed has also dropped sharply. "In the past, the asking price of Wall Street talents made many fund companies feel embarrassed, but now the market has completely changed, so fund companies began to implement talent hunting on Wall Street." An industry insider said.
Shortly after the outbreak of the financial crisis, Huaxia Fund published English recruitment information on its website, and all its recruitment positions required management experience of overseas mutual funds or hedge funds, including global markets, emerging markets and American markets. Market participants believe that due to the financial crisis on Wall Street, a large number of financial talents have been laid off, and the timing and related positions of Huaxia Fund's English recruitment information have hinted at the company's impulse to bargain for Wall Street talents.
In fact, some professional recruitment websites are also aware of the talent shortage faced by domestic institutions such as funds.