1. What are the reasons for the rapid development of Henan’s investment guarantee industry?

From 2009 to 2010, the number of guarantee companies in our province experienced explosive growth, reaching 1,640.

What is the reason for the rapid development of the guarantee industry?

Industry insiders almost unanimously agree: there is a market and demand.

1. Alleviating the financing difficulties of small and medium-sized enterprises. Just look at the crazy usury market to see how difficult it is for small and medium-sized enterprises to obtain financing.

“The financing costs of small and medium-sized enterprises in the Pearl River Delta are generally above 5 cents (referring to monthly interest, the same below), and none in the Yangtze River Delta are lower than 4 cents. Many small and medium-sized enterprises are in the dilemma of waiting to die without financing.

Bureau.” (Dahe Newspaper, “Ten billion guaranteed funds are “wandering””).

The average monthly interest rate for private investment guarantees in our province is 1.5 cents, which is within the national legal interest rate range for private lending, which to a certain extent alleviates the financing difficulties of small and medium-sized enterprises.

2. Create a relatively stable investment channel for private capital.

Take a look at the investment market in front of the Chinese people.

Bank: The annual interest rate for one-year fixed deposits is 3.5%, while the price level index (CPI) was once as high as 6.5%. People have been "enjoying" negative interest rates for a long time, and banks' service charge items are increasing day by day.

Stock market: August 8, 2011, “China’s stock market suffered its largest market value loss of nearly 1.3 trillion yuan, equivalent to the country’s 1.3 billion people, with each person losing 1,000 yuan a day!” (Dahe Newspaper, “Panic Spreads” on August 9, 2011

Globally, stock markets encountered “Black Monday”).

Futures, foreign exchange, gold: any investment involving "margin" trading can make you lose all your money.

Insurance: The function of insurance products was originally to prevent risks, but now it has been distorted into "financial management products" to mislead customers. The salesman's slogan is: "Higher interest than bank interest!" It is through these so-called "investment" channels that people's money

A steady stream of money flows into the pockets of a few people, causing the gap between rich and poor to widen.

In 2007, public opinion was in an uproar when the annual salary of the chairman and CEO of a well-known domestic insurance company was 66.16 million yuan.

“The GEM raised more than 100 billion yuan” and “created nearly a thousand billionaires, but it was unable to provide Chinese entrepreneurs with a source of funds to realize their dreams.” (Dahe News, "Three reasons why GEM dragons turn into fleas"

"Big Reason") "Ordinary investors are deeply trapped." (Dahe News "Capital Market Cannot Become a Machine for Making Wealth") Private investment guarantees are relatively stable.

Although the benefits are high, they do not exceed legal requirements and there are certain risks, which should be reasonable.

3. Alleviating the problem of employment difficulties for young people. According to Dahe News, our province guarantees 35,000 employees.

As far as I know, many large Henan investment guarantees also handle social insurance for their employees.

Most of the employees of the guarantee company are college students. They are well-trained, enthusiastic and polite, and very cute!

4. Private investment guarantee company owners can make money. Guarantee company owners are the core force in the development of the guarantee industry. Many of them are private entrepreneurs with successful careers.

The purpose of starting a company is to make money. Who would do a business that loses money?

5. Standardize the private lending market. News from various places shows that usury is rampant in the private lending market, with monthly interest rates of 6 cents, 7 cents or even more than 1 cent!

The boss's "escape" was forced by loan sharks, not by legal private investment guarantees.

The interest rate for legal private investment guarantees shall not exceed four times the bank loan interest rate according to law.

In fact, it regulates the private lending market.

The more legal private investment guarantees develop, the smaller the market space for loan sharking becomes.

6. Narrow the gap between the rich and the poor in society. Private investment guarantees are mostly invested by the poor, mostly the elderly. They have saved a lifetime of pension money, ranging from hundreds of thousands to hundreds of thousands, and hope to have a safe and high-yield investment channel.

Most of the people who borrow money are wealthy people. They are private entrepreneurs worth millions, tens of millions, or hundreds of millions. They borrow money at a relatively high cost to maintain the normal operation of their enterprises.

Both get what they need and actually narrow the gap between rich and poor.

Private investment guarantee meets the needs of economic development and benefits the country and the people. This is the fundamental reason for its rapid development.

2. What is the government’s direction in “rectifying” the guarantee industry?

The article "Henan's Guarantee Industry Should Standardize Development" on December 3, 2010 revealed that "the reporter learned from the Small and Medium Enterprises Service Bureau of the Provincial Department of Industry and Information Technology that from December 1, 2010 to March 31, 2012, the entire province

The establishment and registration work of guarantee institutions will be suspended.” On December 10, 2010, Dahe News published an article titled “Henan Guarantee “Shuffle” is Urgent” and revealed: “The Provincial Department of Industry and Information Technology has set a deadline for re-confirmation of the standardization and rectification of guarantee institutions.

It was at the end of 2011.” It was not until June 11, 2011 that the Provincial Department of Industry and Information Technology announced the list of 246 guarantee institutions in the province that had “passed the preliminary review”, including 104 in Zhengzhou.

Most of the names on the list are unknown, and industry insiders say they specialize in bancassurance.

Later, it was discovered that there were also people on the list who had obtained registration certificates or even business licenses after December 1, 2010.

It turns out that the government has no say whatsoever, and the government’s credibility collapsed instantly!

The Provincial Department of Industry and Information Technology also announced five conditions for the “Qualification of Financing Guarantee Institutions”.