Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：6  发布时间：2026-05-10

  It indicates that even the most rational group of people may make the craziest collective actions when a public need cannot be met through legal means. The fact of the following decade is that Wenzhou people have never stopped experimenting with private finance. On November 1, 1986, a person named Yang Jiaxing raised 318000 yuan to establish the earliest "joint-stock cooperative credit cooperative" in the country - Lucheng City Credit Cooperative. Lucheng is another name for the urban area of Wenzhou. Six days later, a furniture factory manager named Su Fangzhong founded a city credit union that he privately owned and controlled. He named the newborn Dongfeng Credit Union after his furniture trademark. Due to the lack of explicit legal support, the fate of these private financial institutions is like a product of illegitimate activities, constantly facing the possibility of being banned and sanctioned.

In 1986, although the Wenzhou lifting event caused a sensation, its scope did not extend beyond the southern Zhejiang region. In the future, due to the ambiguity and volatility of financial control policies, even more shocking financing storms will erupt in Beijing, Nanjing and other places. In early 2000, the State Council carried out another rectification and cleanup of the financial order. Private credit cooperatives and rural cooperative foundations in southern Zhejiang and Guangdong were one by one subjected to rectification, either banned or forcibly merged into state-owned rural credit cooperatives. More than 2000 private financial institutions in Guangdong were shut down and merged. In February of that year, Su Fangzhong was wanted and arrested by the police on suspicion of illegal acceptance of public deposits and fraud.