In 1980s, Wu Renbao gave up the promotion opportunity in the position of Jiangyin County Party Secretary, and returned to Huaxi Village to lead the villagers to get rich, which became a much-told story for a while. "Farming in the 1970s, factories in the 1980s and cities in the 1990s", Huaxi Village once became the richest village in China.
At the end of 1993, Huaxi Group was formally established. The group is wholly owned by the villagers' committee of Huaxi Xinshi Village, Huashi Town, Jiangyin City, and its business includes steel, real estate, textile, tourism, finance and other industries. ? Huaxi village's "core competitiveness": first-class financing channels;
First, "credit rationing" with low nominal cost and high rate of return is bound to be non-market-oriented in actual operation. Huaxi village firmly adheres to the collective economy, so it has also received the same credit treatment as state-owned enterprises. This means that as long as the business operation is not too bad, it can get higher than the market average.
Second, Huaxi Village not only obtained lower credit cost, but also utilized land resources. Since 200 1, Huaxi Village has successively merged more than 20 surrounding villages, and Huaxi Village has rapidly expanded from 0.92 square kilometers to 35 square kilometers.
Because under the dual land system of urban and rural areas, Huaxi Village must occupy state-owned land resources if it wants to obtain the land needed for enterprise development, which requires purchasing from the government. However, through the withdrawal of villages, the land in those villages will automatically become the assets of Huaxi Village, and the legal use of collective land in the name of "developing collective economy" is extremely low in cost.
Third, another magic weapon for Huaxi Village to continuously obtain funds is the income distribution model. They reduce the cash flow pressure of enterprises by means of "less distribution, more accumulation, less cash and more shares"