The Wenzhou Lending Crisis

In the first half of 2011, according to the Wenzhou branch of the central bank, the city’s informal lending market had reached 110 billion yuan. Nearly nine in ten families or individuals and nearly six in ten companies took part.

In 2011 the chain broke. Zhou Dewen, head of a Wenzhou association of small and medium firms, said that in August and September alone, more than 100 bosses fled. A commentary in October 2011 called it “a defeat of the business model of the acquaintance society.”

understand-culture
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.