But now, the economic downturn in China has made Zhu known for something else – her billions of dollars in debt. A bankruptcy court ruled in April that “Neoglory is unable to repay its debts, has insufficient assets to repay everyone, and is apparently insolvent.”
Zhu’s fate reversal, which is among China’s richest people, is part of a new trend that has captured many of the star entrepreneurs who produced China’s big economic boom.For years, China’s meteoric growth has well rewarded the bold entrepreneurs, many of whom have borrowed high amounts to take advantage of the time. Full steam growth has also masked the strategic mistakes of companies – besides excessive debt, many of which have expanded to unfamiliar and crowded sectors. These problems are more evident today, with China’s growth slowing to its slowest pace in 25 years. The difficulties of these companies in themselves are affecting growth.
In the past decade, China’s total debt has risen fourfold, roughly three times last year’s GDP. Corporate debt accounts for two-thirds of the total, which is more than $ 26 trillion in 2018, according to the Basel International Clearing Bank (BIS).Government companies owe most of that money, but the signs of distress are more dramatic in private companies, which have less impact on creditors and less support from the state and President Xi Jinping, who sees the public sector as the most important economic factor.Many Chinese entrepreneurs tend to “take as many loans as possible, even if their core business doesn’t need them,” said Joseph Patten, a professor of finance and accounting at the Chinese University of Hong Kong. The Chinese system of top-down decision-making relies on successful entrepreneurs and new business opportunities and the political support needed to realize them, he said. It is a winning strategy in prosperity – which does not offer much protection in times of slowdown.Neoglory has financed its development into large-scale loan-to-value ratios, which will grow to $ 6.8 billion, even though its financial statements showed low equity and weak profits. Behind the scenes, the company has taken new risks to borrow, including closer repayment dates. Trouble broke to the surface in mid-September when Neoglory did not repay a bond payment. Then came further insolvencies.Neoglory said she was wrong when she opened more physical stores when online retailing was more promising, building too much real estate holdings on unworthy websites.In 2017, Beijing began to try to narrow what it defined as excessive financial sector lending, including banks and informal money-management companies. This decline in financial leverage has led to a shortage of cash in many private companies.Cash crunch
The cash crunch revealed the fundamental problems of Neoglory: the once-niche jewelry sector became cluttered and competitive, with profit margins shrinking. And on the real estate side, contractors across China have continued to build malls and apartments such as those set up by Zhu’s company.China’s expansion economy is losing momentum. Growth reached a maximum of 10.6% in 2010, and economists are increasingly pessimistic that the government target of 6% will be achieved this year. This slowdown leaves many programs incomplete, including support for particularly poor rural areas.Especially necessary are companies that may lead China to a new level of development that is less dependent on construction and export. Big debts make it difficult for business owners to reinvent the economy and they hurt business confidence, along with trade disputes with the US.The corporate bond market is only a small part of the Chinese credit puzzle, but it is relatively transparent compared to bank loans, and illustrates the accelerated pace of debt repayment by private companies. From negligible amounts ten years ago, Chinese companies had maturity bonds last year At $ 1.72 trillion, the second-highest amount after US companies, which was $ 5.81 trillion, according to OECD data.Many economists say that debt accumulation is worrying. Accumulation at this rate has preceded recessionary periods in other countries, including before the 2008 global financial crisis.To help private businesses, Beijing is reducing taxes and bureaucracy, and more recently it has eliminated credit control restrictions and encouraged banks to lend more. She also signals that some of the former star businesses are not worth the bailout.
Investing in promising high-tech ventures: It’s all about mass investmentNot just cheap jewelryJo attributes her entrepreneurial spirit to her childhood near the town of Ivo in a rural area. She opened a sales booth in Iowa in 1985, and Neoglory began making jewelry in 1995. In ten years, Zhu became the wealthiest woman in Zhejiang Province and the country’s emblematic symbol of industrial power.She and other exporters have made Ivo a global giant of cheap products, from stockings to Christmas decorations.Neoglory’s necklaces and earrings are sold worldwide, including at Amazon and JC Penny stores in the US. Joe has set up a massive complex that includes not only a factory but also apartments for her family and employees, which at one point numbered 7,000 people and women.Zhu was appointed to the National Assembly of China, where her contribution included offers of assistance to private companies. When the government began to open the bond market to private companies, Neoglory was one of the first IPOs in 2011.The new source of capital provided Jo with the ability to realize greater aspirations from cheap jewelry. Most of the first 1.6 billion yuan IPO receipts in 2011 were directed to the construction of the World Trade Center in the city, a four-story skyscraper complex with a 52-story hotel and mall.Neoglory subsequently added bond-financed villas and apartments, doubling its real estate holdings to 30% of its assets. However, Zhu’s real estate stock came very late. When she inaugurated the Shangri-La Hotel in June 2017, her first bond was approaching maturity.The Chinese economy slowed, and Neoglory faced higher home and rivalry costs with fewer overseas costs. The response was an increase in production. China’s manufacturing plants produced 900 million jewelry items a month, with less expensive competitors popping up in Vietnam and elsewhere.Almost a dozen Neoglory bond offerings – one billion to two billion yuan each several times a year – were based on increased risk. According to recent IPO prospectuses, the primary objective was to finance repayment of older bonds.
To pay off the bondholders, Neoglory is now trying to sell assets and holdings in financial companies. The illuminated letters on the Shangri-La Hotel are “for rent.”Taiwan offers an exceptional blend of skyscrapers and modern technology for ancient temples • Between traditional festivals and advanced legislation, between traditional street food and sophisticated culinary, alongside fascinating ethnic diversity, hot springs and impressive Taiwanese landscapes. The two countries are of similar size. Both were founded in the late 1940s, and have managed to move from a state of scarcity and poverty to relative economic prosperity. Both are isolated from their neighbors – Taiwan is an island with no land borders with its neighbors, and Israel is also a type of island whose borders with its neighbors do not look like those of Europe, as is well known. Taiwan, since its inception, is also facing a security threat from a large and aggressive neighbor, and with a sense of “a small country surrounded by enemies.” And when you see the turbulent demonstrations in Hong Kong these days, you can understand their hearts.The relationship between Taiwan and Israel can be defined as a stable out-of-wedlock affair. Diplomatic relations cannot be institutionalized because of Taiwan’s problematic international position vis-à-vis Greater China (which politically and economically boycots every country that recognizes Taiwan). Still, the two have a particularly productive trade relationship, following the opening of parallel economic and trade offices in Taipei and Tel Aviv.
Well, this large island, which is recommended to spend a minimum of ten days, offers an exceptional combination of skyscrapers and advanced technology with ancient temples and traditional festivals. Between night markets with traditional street food and sophisticated culinary. Between hotels that are at the forefront of modernization and trend in Asia, and rural accommodation in local residents’ homes in picturesque towns, the visit of which is a taste of the least familiar Taiwan.There are native, Aboriginal tribes in Taiwan, a magical mountain landscape with hot springs and green parks; And history that includes Chinese imperialism and Japanese colonialism (which ruled the island from the end of the 19th century until the end of World War II) also made its mark in tea houses, whose origins are precisely in its Chinese neighbor. By the way, for the local tea industry, planted in forests in mountainous areas by the original inhabitants of the island, Queen Victoria has finished the praise and praised the white tea brought to her from Taiwan. From the modern side, it is interesting to note that Taiwan is the only Asian country whose president is a woman, who is vigorously promoting legislation on violence prevention against women, stopping women’s discrimination and significant growth in female representation in the Cabinet. And perhaps the most significant proof of pluralism and progress is that Taiwan’s parliament recently approved same-sex marriage.High-tech, weaving and tattoosBut of all the signs of progress – from skyscrapers to high-tech and high-tech companies – as one who travels solo around the world, I was most impressed by the publication that defined Taiwan as one of the ten safest countries in the world for women traveling alone.Indeed, there is a sense of security in the destination. It’s not a matter of traveling alone in the night markets and getting to know them, even without knowing Chinese. But it does happen, because the locals are exceptionally friendly and welcoming, and also that the main transport in Taipei, trains, has English signage, and they are illuminated at night and exemplarily clean.
And that’s not all: Big signs make it clear where mothers’ nursing rooms are, and women’s restrooms have distress buttons. It also surprised me to see “safe waiting areas” on all major subway platforms, which are linked to camera monitors, backed by the presence of police patrol and distress buttons, which aid in cases of violence and sexual harassment.My journey in Taiwan was all about a feminine mark, as well as the fascinating leap between past, present and future. I was curious to get to know a little more of the Aboriginal culture of the native islanders.To this end, I went to Wulai – a picturesque town located in the mountains, about 40 minutes drive from Taipei capital. Perhaps the members of the Atiel, who are the third largest Aboriginal tribe in Taiwan, live out of about 16 tribes that have received official recognition for their uniqueness. At the Museum of the Atiel, you can learn a lot about the town’s history and the interesting geography of the area. But what really captivated my heart is the museum’s largest embroidery work, the work of a weaver group created by the master of Sayun Yuraw. Seyun explained the important place of weaving in their culture and identity as indigenous women. This tangible product, the textile, is actually their text and subtext, she explained. Aboriginal people do not have written language, and, like other unwritten cultures, material culture sends messages. Indeed, when the foreign occupation wanted to cut off the natives from their traditions, they were forbidden to engage in their craft. “During the Japanese occupation, we were forbidden to weave, and also to tattoo the face in blue, which was the recognition that a woman achieved her destiny in life as a good weaver, supporting her family’s economy,” said Sayyun. “In our belief, those who do not have a tattoo on their face will not be able to receive the ‘rainbow’ in their death, which means crossing the ‘bridge of God’ to unite with their ancestors.” Today, our way of restoring heritage is only through the work of art. ” .
The beautiful Seyun, who, to my surprise, was already a grandmother, began to study weaving at just 40, and is now the most senior teacher in the field, inspiring young artists who learn from her.From the fascinating encounter with the past, I took an hour and a half train from Taipei to Miaoli to meet the future in the image of Sandy Chung, wife and partner of a local tycoon, the owner of Asia’s largest jeans company – Nien Hsing Textile From the five largest jeans manufacturers in the world, which produces for Livy’s, Tommy Hilfiger, Wrangler, Gap, American Eagle and more brands. About 80% of factory workers are women, about 11,000, even at its affiliates in South Africa, Mexico and Vietnam. “Sewing is a feminine skill, like other workstations that require attention to detail. That’s why we primarily employ women and treat them as an important force in the family economy,” Chang explained, thus weaving a thread from One of them, “Good Times,” is an optimistic work by Israeli-Jerusalem artist David Gerstein. It turns out that Gerstein is a well-known and esteemed artist throughout Asia, especially in South Korea and Singapore. It also turned out that Gerstein collaborated with a company owned by Yu-Ting, called the surprising Shalom Arts and it mediates between government agencies and artists, and Gerstein among them. This is how he won international tenders and his sculptures are displayed in key places. The Museum of Modern Art of Tainan, with interchangeable exhibits and exhibitions, is within walking distance of Anping Square, dating back to the fort built by Dutch merchants in the 17th century and at the time the center of Dutch commercial activity. But those who really made this quarter a boon were the Japanese, who took control of Taiwan from the late 19th century and held it until Japan’s 1945 defeat.
The Japanese did build bridges and trains and contributed greatly to the development of the island, but on the other hand made every effort to suppress and obscure the local identity. The islanders were forced to undergo “re-education” to be an integral part of the Japanese Empire. Aboriginal people in particular suffered – harassed them, harassed them, and violently suppressed any attempt at insurgency on their part.During their overrun occupation of the island, the Japanese traded abundant salt and set up a dock for ships, packing houses, offices and hostels for workers and soldiers. Many of the buildings were restored and converted into historic buildings or art centers. One of these is the Anping Tree House, built in the 19th century as a salt trade warehouse by a Japanese industrialist. When the structure was abandoned, a banyan tree began to grow in it, whose air roots took over the walls, creating an imaginative environmental sculpture.Springs, Tea Spa and Culinary The word “maybe” means hot springs, and it comes from the local tribal dialect. A visit to Oli may not be complete without a soothing dip in those warm, clear and mineral-rich springs, in front of a great view. On the other side of Taipei, about 20 minutes drive from the main station, are the Beitu Springs. Locals immerse in the natural springs surrounding the city, along with private baths, most of which are within hotels. Notice, they have a strict adherence to nude bathing.