The formation and evolution of the Shunde model
(1) Concept of the Shunde model
Shunde is located in the south of Guangdong Province, in the middle of the Pearl River Delta plain, with Guangzhou City in the north , connected to Panyu to the east, Nanhai to the north, and Xinhui to the west. Shunde is 32 kilometers away from Guangzhou. Hong Kong is 127 kilometers away and Macau is 80 kilometers away. With a total area of ??806.15 square kilometers, the registered population in 2005 was 1.15 million, including more than 400,000 overseas Chinese and compatriots from Hong Kong and Macao.
Due to its superior geographical and cultural conditions, Shunde has always been an economically developed region and a foreign trade export base. The sugar cane, silkworm cocoons, and pond fish produced here once enjoyed a high reputation in the province and even the country. As early as the Song Dynasty, Shunde was famous as the "hometown of fish, rice, flowers and fruits".
Since the reform and opening up, the people of Shunde have given full play to their policy, geographical and cultural advantages, united and worked hard, been realistic and innovative, and with the courage to be the first in the world, they have taken the lead in carrying out a series of reforms such as the reform of the enterprise property rights system and the reform of the administrative system. Comprehensive institutional reform. The rapid rise of Shunde has attracted widespread attention across the country and is known as the "Shunde phenomenon" and the "Shunde model."
Today, Shunde is a new city emerging in the central part of the Pearl River Delta and has become an important production base for daily necessities such as home appliances, furniture, and gas appliances in the country. Among them, the sales of household appliances and gas appliances account for one-tenth and one-third of the country's total production and sales respectively. Made in Shunde, proud of China: Made in Shunde is particularly outstanding. The China Hardware Products Association awarded Shunde the title of "China's Gas Appliance Capital", the China Coatings Industry Association awarded Shunde the title of "China's Hometown of Coatings", and the China Household Electrical Appliances Association and China Light Industry jointly awarded Shunde Shunde is known as the "Home Appliance Capital of China".
In 2009, the region's GDP was 185.698 billion yuan, an increase of 14.1% year-on-year. Among them, the added value of the primary industry was 3.294 billion yuan, an increase of 3.3, and the contribution rate to GDP was 0.5; the added value of the secondary industry was 102.156 billion yuan, an increase of 11.6, and the contribution rate to GDP was 52.3; the added value of the tertiary industry was 60.751 billion yuan, an increase of 52.3%. 19.3, and its contribution to GDP is 47.2. The added value of the modern service industry accounted for 57.1% of the added value of the tertiary industry, and the added value of the private economy was 93.320 billion yuan, an increase of 16.2%.
Calculated based on the registered population, the per capita GDP is 137,000 yuan. Calculated based on the permanent population, the per capita GDP is 82,230 yuan, an increase of 13.40.
The so-called Shunde model refers to the rapid realization of rural industrialization and urban-rural integration in the process of rural industrialization, led by grassroots governments, based on township enterprises, and taking the opportunity of property rights reform. path.
(2) The formation and evolution of the Shunde model
1. The start of township enterprises
Unlike the foreign-funded enterprises in Dongguan that drive the development of private enterprises, the private enterprises in Shunde A considerable part was transformed from township and village enterprises.
Before the reform and opening up, Shunde was a purely agricultural county. Its industry only focused on a few traditional projects such as silk reeling. Moreover, due to the contradiction between more people and less land, it has been difficult for the traditional agricultural economy to adapt. development needs.
Since the 1980s, Shunde has put forward the strategy of "establishing an industrial county". In 1985, Shunde was approved as an economic open zone by the Guangdong Provincial Government. Favorable policies led to the mushrooming of township and village enterprises in Shunde, and Shunde's economy achieved its first leap.
According to statistics, Shunde's total industrial and agricultural output value in 1978 was less than 1.6 billion yuan based on 1990 constant prices. But in 1985, its total industrial and agricultural output value doubled, and by 1990, its total industrial and agricultural output value was close to 9 billion yuan. At this time, Shunde has made great strides into the ranks of Guangdong's "Four Little Tigers". Among them, 5 of the top ten township enterprises in the country are already in Shunde.
From the late 1980s to the early 1990s, Shunde's home appliance industry conquered cities and territories across the country and was invincible.
The production and sales volume of more than a dozen household appliances produced in Shunde, including refrigerators, air conditioners, microwave ovens, electric fans, rice cookers, electronic disinfection cabinets, and water heaters, rank first in the country. The industrial output value of household appliances accounts for about 15% of the same industry in the country. Within a 10-kilometer drive from the south to the north of Shunde Avenue, there are five well-known Chinese brands - Kelon, Rongsheng, Midea, Macro and Galanz. Shunde is well-deserved as the home appliance manufacturing center of China and the world.
There is a saying that Shunde's strong industries are "two families and one flower": two families are home appliances and furniture, and one flower is the flower industry.
Lecong Town in Shunde is known as the "Furniture Capital of the World" and is one of the largest furniture distribution centers in the country. Longjiang is known as the "No. 1 Furniture Town in China", where 2/3 of Shunde's furniture is concentrated. Factory, with more than 1,200 branches.
Shunde is also the largest flower production base in the country, with a flower planting area of ??45,000 acres, of which Chencun Town accounts for 23,000 acres. Although the planting area of ??flowers in Shunde only accounts for 2% of the total planting area, sales account for 60% of the planting industry, making it a leader in Shunde agriculture.
Shunde's impressive achievements are inseparable from its development path led by the government and supported by the collective economy. The "three main" economic development ideas proposed by the Shunde government (that is, focusing on the collective economy, focusing on industry, and focusing on key enterprises) are the core of the Shunde model. In the Shunde model, most public-owned enterprises were developed through bank loans guaranteed by the government. According to statistics in 1993, among the registered capital of Shunde industrial enterprises, the public economy accounted for 74%, foreign capital accounted for 24.7%, and private capital accounted for only 1.28%. Shunde people used the government's name to guarantee enterprises and attract funds needed for development. Although the government's approach to leading industrial development has attracted criticism, debt development has two advantages: one is to handle subsequent matters in advance, and the other is to be able to quickly Complete primitive accumulation of capital. Because it was a shortage economy at that time, the supply of products on the market exceeded demand. With capital investment, you could make a fortune if you could produce the products.
2. Property rights reform
As time goes by, this development model led by the government and supported by township enterprises has faced unprecedented challenges. In the early 1990s, the crisis of Shunde's township enterprises had begun to emerge: the "introduced" foreign obsolete "advanced" machines in village-run factories had begun to show weakness in the face of truly advanced production lines introduced from other regions; The weakness of the incentive mechanism has become quite problematic; grassroots governments have already shouldered a heavy debt burden for the development of township and village enterprises. In summary, the Shunde model has exposed the following problems in the new development period: unclear corporate property rights, unclear responsibilities and powers, no separation between government and enterprises, and poor management; corporate losses, negative bank loans, government debt, and loss of state assets.
Shunde must make a decisive decision on where to go.
Shunde’s reform is divided into two steps.
In March 1992, Shunde was removed from the county and established as a city. In May 1992, the CPC Shunde Municipal Party Committee and Municipal Government, which had just been listed for two months, issued a report to the CPC Guangdong Provincial Committee and the Provincial Government - "Request for Instructions on Shunde to Conduct Comprehensive Reform Experiments and Accelerate Economic Development" 》. In September 1992, under the chairmanship of Xie Fei, then Secretary of the Guangdong Provincial Party Committee, the Guangdong Provincial Party Committee and the Provincial Government issued the "Instructions on Supporting Shunde City to Conduct Comprehensive Reform Experiments and Accelerate the Pace of Economic Development", allowing it to carry out comprehensive system reform have greater autonomy; in 1993, the Guangdong Provincial Party Committee and the Provincial Government decided to carry out a pilot project of "enterprise reform-centered, supporting and comprehensive comprehensive reform" in Shunde, which is the so-called "property rights reform".
In July 1993, Chen Yongzhi, then Secretary of the Shunde Municipal Party Committee, proposed in a meeting report that the old "three main points" should be changed into the new "three main points": that is, from focusing on the collective economy , adjusted to a mixed economy, gradually increasing the proportion of the non-public economy; from focusing on industry, adjusting to focusing on the secondary and tertiary industries, and gradually increasing the proportion of the tertiary industry; from focusing on key enterprises, adjusting to Mainly high-level and professional groups.
In accordance with the idea of ??"seizing a group, releasing a group, and developing a group", Shunde City adopts various methods such as joint-stock and joint-stock cooperative systems, transfer of equity, auction, redemption, leasing and contracting operations. Form, so that enterprises can truly transform themselves into market players. By the end of 1996, all 1,001 state-owned and collective enterprises at the municipal and town levels had been transformed, the mixed economic pattern was initially completed, and the framework of the socialist market economy was initially established. The proportion of public shares in enterprises at the original city and town levels dropped from 90 to 62.4, and the proportion of foreign and private investor shares accounted for 37.6. There are 32 large-scale enterprises with an annual output value of more than 100 million yuan originally owned by the government. After transformation, 15 are operated solely or controlled by the government, 3 are listed companies, 4 are Sino-foreign joint ventures, and 10 are joint-stock or joint-stock cooperatives.
In 1997, Shunde announced another important reform decision; all government agencies no longer have their own directly affiliated enterprises, realizing the separation of government and enterprise and the separation of government and capital, and the government withdrew from the general competitive field. Shunde Township and village enterprises have undergone transformation. ①
Since then, the old "Shunde model" can be said to have ceased to exist. The Shunde model has entered the second stage, an era dominated by the private economy.
3. Enterprise listing
Before the restructuring of enterprises in Shunde, the listing of enterprises in Shunde started in the early 1990s, and the listing of enterprises was promoted simultaneously with the restructuring of township enterprises. of. In 1993, Midea and Macro were the first listed companies in my country's township enterprises to issue A shares in the domestic securities market. In 1996 and 1999, Kelon was listed on the Hong Kong Stock Exchange and Shenzhen Stock Exchange respectively. However, the performance of these four listed companies on the stock market has been mediocre and lackluster. Moreover, both Macro and Kelon have been forced to undergo restructuring after going public.
How to improve the "Shunde Model" and comprehensively enhance the competitiveness of Shunde enterprises has always been an issue of great concern to the Guangdong Provincial Party Committee and the Foshan Municipal Party Committee. In August 2004, Foshan City established a leading group for the utilization and development of capital markets and an entrepreneurial listing office, with Chen Yunxian, executive deputy mayor of the city, as the group leader. In November 2004, Chen Youqun concurrently served as Shunde District Party Committee Secretary. Chen Yunxian served as the chairman of GF Securities before entering politics. This time he is fully in charge of Shunde's work, which shows the determination of the Guangdong Provincial Party Committee and Foshan Municipal Party Committee to promote the capitalization of Shunde's industries.
Under Chen's promotion, the Shunde District Government issued the "Opinions on Promoting the Listing of Enterprises" in January 2005. The main contents of the "Opinions" include: First, the establishment of the Shunde District Enterprise Listing Office, which is mainly responsible for the daily work of the district's leading group for the utilization and development of capital markets, and is responsible for "overall planning, organization, coordination, guidance, and services" for the specific use and development of capital markets. Work, assist and guide the company's listing work. The second is to establish a "green channel" for enterprise listings and a "one enterprise, one consultation" service system. In accordance with the principle of "one enterprise, one consultation", various tasks involved in the enterprise's restructuring, listing, and capital operations can be quickly handled. The third is to set up a "special account for supporting enterprise listings in the district" to support successful listings of enterprises and effectively reduce the listing costs of enterprises. The fourth is to formulate an incentive policy for enterprise listings. For enterprises that have completed the listing guidance period from January 13, 2005 to December 31, 2009, and successfully issued stocks, including "buying shells" and "backdoor" listings in other places, and Enterprises that move the registration place of listed companies back to Shunde will be rewarded by the district government.
Driven by the Shunde government, the number of listed companies in Shunde is increasing day by day. As of October 2006, 13 companies in Shunde have been listed, and 5 to 8 companies are actively applying for overseas listing. More than 50 companies have expressed their willingness to go public and are preparing for listing. In July 2006, Shunde's Demei Chemical became the first listed company after the IPO restarted in China's securities market. It was also the "first stock" in Shunde and even Foshan in the A-share market. It has been at the forefront of the industry in Shunde and even the country for many years. , its successful listing will serve as a model for other Shunde small and medium-sized enterprises.
In April 2007, Shunde Country Garden was listed in Hong Kong. The richest person in China was Country Garden’s major shareholder Yang Huiyan. Country Garden also created the myth of raising more than 100 billion yuan in the stock market.
Capital operations, especially through company listings, not only enable Shunde companies to raise substantial funds, but also bring about conceptual changes to Shunde bosses who have always liked to focus on doing business. The first is to be familiar with and adapt to the "rules of the game". For example, when a company goes public, it must ensure profits for three consecutive years, pay taxes, make its finances public, etc.; the second is to deepen its understanding of the corporate governance structure, for example, it must To distinguish and define the roles of bosses and professional managers, family businesses must be transformed, etc., to establish a modern enterprise system. In short, in just a few years, Shunde enterprises have experienced another transformation after converting from township enterprises to private enterprises, that is, from traditional enterprises to modern enterprises.