The Nanjie myth is now broken. A reporter survey found that as early as three years ago, the “communist” model village had been already quietly privatization with liabilities of more than 1 billion yuan and was on the brink of bankruptcy. However, all this has already occurred, and many villagers are ignorant.
It is said that in November 2004, Nanjie Group quietly diverted shareholding system in the name of “safeguard the stability of the management of the cadre”, and announced the “Equity Incentive Plan” by Wang Hongbin and 13 village cadres. Still claiming to be holding a monthly wage of 250 yuan, village party secretary Wang Hongbin won 9 percent of the stock. The “communism guides”since then gorgeously turned into the “red capitalists.”