担保业前世今生

CHINA’S GUARANTEE INDUSTRY: PAST AND PRESENT SITUATION

十余年间，担保业的发展从高峰走到了低谷，要走出困境，调整监管思路是关键。

In recent years, a huge amount of profit-driven capital flows into the guarantee industry because the financing costs are relativelylow and it can satisfy the constant need for working capital funding. Thus, the rapid growth of guarantee industry helps to solve the financing difficulties of small and medium-sized enterprises. However, the industry faces some challenges due to the low entry threshold, the imperfect system and the supervision loopholes.Recently, Zhongdan Investment & Credit Guarantee Company ran into trouble. It faced a major capital chain issue and its license might be revoked soon. Zhongdan’s eventual bankruptcy may affect 22 banks and 294 small and medium-sized enterprises.The main cause of its trouble is the company sought a quick expansion by holding back some portion of lending from its clients in the name of borrowing or wealth management with high interest rates. However, such an aggressive expansion led to the cash flow disruption.