Remember the great escape?
With the economy slowing down and credit being tightened in China, businesses have been increasingly relying on the underground lending, which charges very high interest rates. Not surprisingly, at some point these businesses can no longer bear such interest rates and fail. While the focus has been mostly on Wenzhou, such lending practice exists everywhere. The latest report from Sina says that a business in Ningbo has just hit the wall.
But the interesting bit is still in the city of Wenzhou of Zhejiang Province. Zhejiang official data suggests that 228 business owners have escaped/disappeared from January to September this year, the highest in recent years. Some of them are bosses of businesses with more than a thousand of employees. Some business owners have left the country, apparently.
Not all of those great escapes were so obvious. In fact, many bosses disappeared without leaving clues, and their businesses certainly did not seem to be coming close to failure before their bosses disappeared. In one case, this is how a business owner disappeared without showing any signs of problems with the business:
Company X has organised a 2-day tour for all of the employees. As these employees went back to work, all the manufacturing equipment and the boss have disappeared.
The report also suggests that the coming three months might be the peak season for disappearance of business owners.
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