Shenzhen Junduoli boss flees with whole family; leaves behind millions in debt

Earlier this week, what the Chinese have dubbed "China's subprime crisis" spread to Ordos, the empty city built in Inner Mongolia, when a real estate developer deep in debt committed suicide and his partner fled. This is not a surprise, since this development has been covered many times over in the press. However, Shenzhen is the heart of Chinese manufacturing. This crisis has now spread into the industrial center of China and while one story does not a trend make, this could be the sign that things are about to get out of control.

Shenzhen LED factory owner defaults and flees, entire family missing 欠钱“跑路” 深圳LED企业老板举家失踪 Here's a rough summary: a factory with over 100 million yuan in annual sales, Shenzhen Junduoli, is in arrears for tens of millions of yuan. The court has seized the firm and begun to liquidate assets. Some firms on the hook: China Construction Bank, 30 million yuan; Sinochem International Far Eastern Leasing Company, 17 million yuan; various suppliers more than 12 million yuan; a guarantee company more than 33 million yuan; and some unnamed loan sharks, amounts yet to be published.

Junduoli had sales of 80 million yuan in 2009 and broke through the 100 million level in 2010. A company employee said not only were sales plummeted to levels below that of 2008. At the same time, the firm was rapidly expanding, including a new factory in Sichuan. Doing a quick search I was able to find a bit of information about this company. Shenzhen Junduoli Enterprise Group

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