New Trend of Wenzhou Speculative Capital: 80% of Funds Enter the Real Industry Sector

According to two reports from the Wenzhou Central Sub-branch of the People’s Bank and the Wenzhou Office of Banking Regulatory Division, following the turbulence in the real estate and stock markets, Wenzhou’s enormous floating funds have entered the production and operation sectors.

The "Wenzhou Financial Situation Analysis Report" from the Wenzhou Central Sub-branch of the People's Bank showed that in June, 88.5% of Wenzhou's private funds were used for production and operation, an increase of 0.5 percentage points compared to the same period last year. 1.7% was used for household consumption purposes, while the direction of the remaining 10% of the funds is unclear.

Meanwhile, according to estimates by the Wenzhou Office of Banking Regulatory Division, the total amount of current private funds in Wenzhou is approximately 300 billion yuan, with a conservative estimate of 40 billion yuan being used for private lending.

An internal document from the Wenzhou Office of Banking Regulatory Division stated that since the beginning of this year, the scale of private lending has expanded somewhat, and interest rates have risen significantly, alleviating to some extent the difficulties enterprises face in capital turnover.