Wenzhou investors turn to real economy
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Wenzhou investors, who are known in China for their sharp sense of business and investment, are turning their focus to the real economy as the stock market becomes bearish and the property market is tightened by a series of government policies, the 21st Century Business Herald reported.
Many entrepreneurs in Wenzhou, Zhejiang province, who previously put money into the capital market have switched back to expanding their business in the real economy sector, as the reviving world economy pushes order numbers to increase.
Qiu Xuefan, a successor to a family business, told reporters that the real economy is mostly cyclical industries and now their time is coming. This Wenzhou businessman used to prefer stock and property markets to real economy.
A large amount of capital used by Wenzhou enterprises came from the private sector as government has tightened banks' lending. A survey in April showed that the local borrowing capacity in the private sector reached 56 billion yuan ($8.2 billion), which means enterprise financing has become a major investment channel for private capital.
