Since the fourth quarter of 2018, the plight of private enterprises has been a hot topic. Although all sectors of industry, academia and research have emphasized the difficulty of financing, expensive financing, and rising operating costs for small and medium-sized private enterprises; in fact, in 2018, what impressed us is the difficulties encountered by some large private enterprises.The plight of private listed companies needs to be studied and judged from a more complete cycle. I have combined these macro and micro factors in the past few years and concluded them as three stages, which I call the trilogy of increased leverage, investment failure, and cash flow rupture.Prospects and reflections on the rescue: First, the plight of private listed companies is a microcosm of the new normal of China's economy. Second, China's debt-based model has its particularity, that is, where the collateral is strong, the funds will go where. Third, we must further consider the problem of a serious decline in the investment success rate of listed companies.
