Behind Wang Jianlin’s "100 million small goal": the Chinese class is increasingly solidified

  "First set a small goal that can be achieved, for example, I will earn 100 million yuan first." Recently, Wang Jianlin’s public remarks have been widely circulated among the general public, and many people have made fun of themselves.

  Although Wang Jianlin’s remarks have their context, which can make the sentence seem less abrupt. But the "Matthew Effect" behind this sentence reflects the "Matthew Effect" of China’s class solidification and the rich getting richer will continue to play out in the future.

  First of all, from the perspective of Wang Jianlin, as the richest man in China in 2015, he will earn 100 million as a "small goal", which is confident: Statistics show that Wanda Group’s income in the first half of 2016 was 119.93 billion yuan (Wanda general merchandise is Wang Jianlin’s personal company, and the income is not included in Wanda Group), which means that Wanda Group’s daily operating income is about 6 billion yuan. The class A share listed company Wanda Cinema had an operating income of 5.722 billion yuan and a net profit of 805 million yuan in the first half.

  As one of the largest real estate-oriented integrated enterprises in China, Wanda Group’s profit-making effect is highlighted under the advantages of industry and scale. However, for most small and medium-sized enterprises, and even many class A share listed companies, under the trend of China’s economy gradually entering low growth, life is not so good.

  Taking the 2015 annual report of listed companies as an example, there are more than 300 15 million profits within one year, more than 10% of the total number of listed companies. What is the concept of 15 million? You can only buy a real estate in the main urban area of Beijing, Shanghai and Shenzhen. If you look at non-listed small and medium-sized enterprises, the situation may not be so good. In the past few years, foreign trade enterprises in coastal areas have closed down one after another due to the slowdown in exports. Since last year, due to the skyrocketing housing prices in hot cities, many manufacturing enterprises have been squeezed out. It can be said that with the increasing downward pressure on China’s economy in recent years, the days of Chinese enterprises, especially the manufacturing industry, have not been easy. Recently, there have even been many owners of manufacturing enterprises in Shenzhen and Dongguan. When the enterprises encountered difficulties, they lamented that they should have bought

  Correspondingly, the new loans of enterprises shrank sharply in July this year. Among the 463.60 billion yuan of new RMB loans in the Financial Institution Group in July, corporate loans did not increase, but decreased by 2.60 billion yuan, a sharp decrease of 611.40 billion yuan month-on-month. This is only the second time in history that new loans of enterprises are negative. The last time was in July 2005 ten years ago.

  Without a doubt, this shows that the real economy is withering, enterprises are reluctant to lend, and profitability and solvency are quite difficult. The marketization of the financial system determines their inevitable choice. Either the enterprise dies or they voluntarily close the enterprise, and the demand for funds falls off a cliff. Once confidence collapses, even if the banks are willing to lend, the enterprises are not willing to take it.

  At the same time, companies with deep pockets such as Baoneng and Hengda are snapping up equity and capital operations everywhere, and every carnival of financial assets has benefited them a lot.

  The strong and the weak are the epitome of the current Chinese economy. At the same time, the widening wealth and resource differentiation between the rich and the general class reflects the increasing solidification of the Chinese class.

  Wanda’s huge annual income has inflated the wealth of Wang Jianlin and his son, and a similar situation is also reflected in other wealthy people. According to statistics, the number of billionaires in China is as high as 67,000, surpassing the United States in the global rich list and making it the country with the most billionaires in the world.

  At this time, in 2015, the per capita disposable income of Chinese residents was only 21,966 yuan, and the per capita GDP was only 50,000 yuan. In addition, according to the National Bureau of Statistics, China’s social Gini coefficient was 0.462 in 2015, while the internationally recognized gap between the rich and the poor was 0.4 (the Gini coefficient is an important indicator used internationally to measure the difference in income distribution between residents. Only about 10% of countries in the world exceed 0.5, and the Gini coefficient in developed countries is generally between 0.24 and 0.36).

  In addition, in recent years, with the increasing downward pressure on the Chinese economy and the continuous release of liquidity by the central bank, the RMB has been weakening, and the depreciation pressure is not small. At this time, the rich class of high net worth can protect themselves from the impact of exchange rate and other risk factors through overseas asset allocation; but the low net worth people, that is, the "poor", seem to have little protection against risk factors such as currency devaluation.

  In terms of domestic investment channels, the public can only choose stocks, bank wealth management and other channels, so the valuation of class A shares has been high, while bank deposits and wealth management products are completely "wedding clothes" for the wealth appreciation of the rich, because a large number of bank wealth management funds flow to financial marekt structured products.

  Yan Hao, the son of Yan Jiehe, an entrepreneur who was once China’s richest man, said recently that China has now bid farewell to the era of "sudden wealth". Indeed, as economic growth gradually stabilizes and all industries and fields are touched, "sudden wealth" situations are difficult to occur as frequently as in the decades before the reform and opening up, which is also a characteristic of the country entering a mature stage.

  However, there is something else to be said about Yan Hao’s words: the current poor are less likely to become rich in the future. It is difficult to predict to what extent, but if a person can no longer live a relatively satisfactory life by virtue of knowledge and hard work, and the theory that school is useless, struggle is useless, and "fighting father" is king are frequently verified, then the negative effects of class solidification will appear, and the consequences will be unimaginable, and they may even fall into the Latin American-style middle-income trap.

  Class solidification, followed by a lack of vitality in China, which should be the vast majority of people do not want to see.