Zhongrui Syndicate, a syndicate initiated by Wenzhou's nine
private enterprises, will be officially set up in the middle of
June 2004, source with the preparation team said recently.
Wang Zhentao, president of Wenzhou Aokang Group and head of
Wenzhou Commerce Chamber, said that the purpose of the move is to
explore a new development method for China's booming private
economy.
Wang was reluctant to tell the registered capital, share
structure and their possible investment options in the future, but
he revealed that the syndicate will invest in big project?that
cannot be completed by any single enterprise.
The preparation team promises to adopt modern management
methods, with separation of share holding and operation rights.
The nine proposing private enterprises include Sunlead Group,
Aokang Group, Guoguang Property Co. Ltd, Fapai Garments Co, Ltd,
Taili Industrial Co. Ltd., Yuanyang Glasses, Xingji Group, Tengen
Group Corp. Each of them is leading enterprise in their sectors
(see Table-1).
Table-1: nine proposing enterprises
|
|
Field
|
|
Sunlead Group
|
Machinery; foreign trade; sewage disposal; real estate
|
|
Aokang Group
|
Shoes
|
|
Guoguang Property Co. Ltd
|
Real estate
|
|
Fapai Group
|
Garment; shoes
|
|
Taili Industrial Co. Ltd
|
Switch; socket
|
|
Yuanyang Glasses
|
Glasses
|
|
Xingji Group
|
Siren
|
|
Tengen Group Corp.
|
Low voltage equipment
|
|
Tenyale Locks Co. Ltd
|
Lock
|
The founding of Zhongrui Syndicate Holding Co. Ltd. was approved
by State Administration for Industry and Commerce in February 2004.
Wenzhou city government has expressed its support for the
syndicate.
Private economy in Wenzhou, east China's Zhejiang
Province, has been booming since China adopted the policies of
opening-up and reform. However, compared with large enterprises
either at home or overseas, there is still a big gap for Wenzhou's
enterprises to catch up.
"Enterprises in Wenzhou must join their forces to form a union
when they develop to certain extent," said Ye Zijian when
interviewed with 21st Century Economic Report in
March.
Aiming at high-profit projects?
Some analysts pointed out that the combination of these
enterprises aims to win contracts of projects in public facilities.
Their reasons are as follows: Wenzhou city government has planned
in the next five years to invest in 103 key projects, ranging from
transportation and energy to other urban infrastructure
constructions, with a total investment of 204 billion yuan (US$24.6
billion), while local officials encourage private enterprises to
participate in key construction projects.
The preparatory team confirms that they have already consulted
with the local government on four important infrastructure
projects. Real estate industry, one of the overheating sectors in
China, is also one of their future options.
"The high profit in real estate and urban infrastructure
construction is the main reason for their ally," commented Jiang
Hongqing, a local researcher.
(China.org.cn by Tang Fuchun, June 1, 2004)