Private enterprises in Wenzhou are experiencing a credit crunch. Many have gone bankrupt, while those that survive have yet to feel the impact.
Liu Shunfeng, chairman of Zhongguang Technology Corporation, evaluates his loss.
"We made a loan guarantee for another company for 58 million yuan. When the company got into trouble, the bank took money from our account. The immediate damage to our business was 500 million yuan."
Loan guarantees were popular among Wenzhou private enterprises, who were accustomed to helping each other obtain bank lo
