What thoughts have been triggered by the controversy over Wu Ying’s case?

Wu Ying is an ordinary young woman from rural Dongyang, Zhejiang. She was born in 1981. She dropped out of school to study cosmetology before graduating from a technical school. Before 2006, the 24-year-old Wu Ying was already a cosmetologist in many beauticians in Dongyang City. The owner of a store, KTV, and foot bath shop. Beginning in March 2006, 25-year-old Wu Ying registered and established 12 business companies named after Bense in Dongyang within 3 months, covering many fields such as commerce, real estate, hotels, Internet, and advertising lights. Among them, Bense Holding Group has a registered capital of 50 million yuan, Wu Ying himself contributed 45 million yuan. He also used 200 million yuan in cash to buy more than 700 shops in Dongyang Century Trade City, and donated 6.3 million yuan to charity for three consecutive months. For a time, the media exaggerated the story one after another, and the young beauty salon owner interpreted the myth of wealth. In 2006, Wu Ying was ranked 68th on the Hurun Rich List and 6th on the list of richest women. There is a saying: "The limelight and thunder are two doors away." The day Wu Ying became famous was when her violation of discipline began. In fact, there were not many assets at that time, and the investment money basically came from bank loans and private high-interest loans. After October 2006, problems occurred in the capital chain of Bense Group. First, 8 million yuan of land was auctioned and pledged. The money was withheld, and then Wu Ying was kidnapped by the lender for 10 days. Dongyang Bank withdrew the 17 million yuan loan in advance. On February 7, 2007, Dongyang police detained Wu Ying on suspicion of illegally absorbing public deposits. Wu Ying's wealth myth was quickly shattered.

Wu Ying raised funds to start a business and became famous overnight. The myth of rich women quickly shattered. It tells us that running a business is not just blowing soap bubbles. It must be down-to-earth. Enterprise development must be based on its own ability and financial resources, and must not be based on temporary Be as enthusiastic as you want. Wu Ying's failure lies in overestimating his own capabilities. In the absence of business management experience and ability, and lack of capital strength, she relied on high-interest private loans to expand blindly. This was also the fundamental reason for her doomed success or failure. At present, small and medium-sized enterprises that are actively transforming and upgrading must keep a clear mind. The application of high technology to develop high-tech industries is certainly the direction of enterprise transformation and upgrading. However, for most small and medium-sized enterprises, there are great difficulties in terms of management level, science and technology and financial strength. If they enter the market unrealistically, When new fields are launched, new projects are launched, and excessive expansion occurs, companies are likely to fall into trouble. A few companies have already experienced crises due to this. We can't help but take this as a warning.

While learning lessons from the Wu Ying case, we should also consider the legality of private lending. How to determine Wu Ying's crime? The key is to correctly identify the difference between fund-raising fraud and private lending. This not only determines Wu Ying's life and death, but is also of great significance to small and medium-sized enterprises in Zhejiang and even the entire Chinese private economy. Under the existing financial system, in fact many small and medium-sized enterprises in China's private economy adopt methods similar to Wu Ying's to raise funds needed for establishment and development. Because they cannot obtain sufficient loans from banks, they can only obtain the funds they need through private lending. It can be said that if private lending had taken place, there would not have been the development of China's private economy and small and medium-sized enterprises today, and private lending has contributed a lot. Currently, the most criticized thing about private lending is high interest rates, and private lending (loan sharking) is even blamed for the collapse of some companies. The interest rate of private lending is truly market-oriented and is completely determined by the supply and demand situation in the capital market. The country's monetary policy has tightened, banks have reduced credit, and companies have no choice but to turn to private lending, which naturally pushes up private lending rates. If a company can borrow the funds it needs from banks, it will not resort to private lending. The demand for private lending will decrease, and interest rates will naturally fall. Therefore, "loan sharking" is not a private lending crime. As for the collapse of a few companies, some people say it was due to the high interest rates on private loans. I don't think this view is entirely correct either. The interest rates on private loans are high, which increases the financing costs and burdens of enterprises. This is an objective fact. However, the company encountered financial difficulties and was unable to obtain loans from banks and did not borrow money from the private sector, causing the capital chain to break. Can the company still survive? In fact, private lending has enabled many small and medium-sized enterprises to obtain capital turnover, relieve their temporary difficulties, and avoid bankruptcy. Of course, there are cases where companies go bankrupt after borrowing money from private loans, but most of them avoid bankruptcy.