|
Wenzhou businessmen are famous for group speculation on property. Known as the "Wenzhou Real Mission", they cashed in at least tens of millions of yuan to buy dozens of apartments and villas in one-off payment. The businessmen sell the properties when prices go up to secure handsome profits. They have also come under intense criticism for pushing up China's sky-high housing prices.
It is estimated that Wenzhou's private capital totals around 800 billion yuan. If the money in circulation outside is included, the total sum could exceed 1 trillion yuan.
As manufacturers grapple with growing difficulties, a Sword of Damocles is hanging over their heads.
The industry could see further contraction as first-generation entrepreneurs, who have passed their fifties or sixties, begin to consider handing over their positions to their offsprings who have developed an affinity for financial investment but have no interest in traditional industries, said Hu Hongwei, a researcher on Zhejiang's private business.
The Jinjiang-based Hengan International Group is China's largest producer of hygiene products with sales revenues exceeding 10 billion yuan.
Xu Lianjie, the founder of the company, sent his three children to study abroad. Xu gave each of his children 100 million yuan after they returned home to set up investment companies instead of asking them to look after the hygiene business.
Unlike their fathers or mothers who earned their fortune from making socks and shoes in shabby workshops, the "rich second generation" are born into rich families and are sent to Western business schools. Most of them get their first taste of the capita l market on Wall Street.
Huang Jianwei, who oversees capital assets worth 15 billion yuan, has just set up a new mutual fund. To his surprise, many fund-raisers of the 5-billion-yuan fund belong to the "rich second generation".
"Different from their fathers, who like to stay within their family-owned business, the new generation wants to have more interactions. Capital connects them together, and that would possibly make them a new fortune," he said. |
