Reshuffle to Revive– Interpretation of pilot financial reform measures in Wenzhou.doc

Reshuffle to Revive– Interpretation of pilot financial reform measures in Wenzhou China gave go-ahead to the experimental financial reform of Wenzhou, which aims to reshuffle the private economy for a better outlook of the whole China. The troubles with private loans”, the “breakup of capital chain”, the “fugitive bosses”…Last year, these words were frequently heard with Wenzhou, a wealthy coastal city in Zhejiang. Wenzhou?s prosperity is related with the thriving private economy there. But this city is also filled with risks of private loans. In order to legalize and standardize the private capital, Wenzhou formulated a lot of financial reform measures. On March 28, 2012, the State Council held a standing conference, deciding that it was time to set up the pilot region of comprehensive financial reform in Wenzhou. The central government approved the implementation of the General Plans about the Pilot Region of Comprehensive Financial Reforms in Wenzhou, Zhejiang, which includes several tasks to be solved. The document requires innovation through system and building a diversified financial system matching the social and economic development to improve the financial services, prevent and resolve financial risks and optimize the financial environment. Obviously the central government hopes that Wenzhou could serve as an example for the country. Private capital officially integrated into legal financial system Plan: the private financing will be developed normatively. The management method of private financing should be formed and a file management system of private financing should along with the establishment and improvement of private financing supervision system. Interpretation: the credit crunch last year broke up the capital chain of many private companies and many private entrepreneurs, who could not return their loans in time, chose to flee to foreign countries to evade their duties. These things were under heavy scrutiny once they were exposed and