SOE To Be Deslisted, Debt Hidden Off Balance Sheet; Illegal Banks in Handan; Guang Group Saga Hits Trusts

Some headline news from a Tuesday evening in China. The second story isn't major news, but it was headline news in the financial section.

Here's an English report from Caixin on an SOE to be delisted, which has off balance sheet debt. Then a story of two illegal banks in Handan, followed by a lawsuit by a trust company intertwined in the Guang Group story.

How State-Backed Shipping Firm Ran into Ice Berg of Debt

After reporting losses for four straight years, Nanjing Tanker Corp., the oil and bulk chemicals marine freight subsidiary of state-owned Sinotrans & CSC Holdings Co., is poised to become the first central government-backed enterprise to be forced off a domestic stock exchange.

It reported losses from 2010 to 2013, triggering an automatic delisting process. The Shanghai Stock Exchange said in mid-April the company will be formally delisted on June 4 after a 30-trading-day transition period.

In 2013, Nanjing Tanker reported a 5.9 billion yuan loss, with total debt reaching 15.7 billion yuan and debt outpacing equity by more than 2 billion yuan.

But the problem for Nanjing Tanker goes deeper. The company has withheld information about more than US$ 1.28 billion in loans taken out between 2005 and 2008 from overseas and domestic banks, research jointly conducted by Caixin and the British shipping industry journal Lloyd's List has found.

Here's news from Handan in Hebei province: some folks set up two illegal village banks and collected 900,000 yuan in deposits. The news does not say the money was stolen, just that the banks are not legal.

“山寨版”村镇银行现身 河北已取缔两家 (Shanzhai Banks Appear) Shanzhai is a term for knockoff goods in China.

recently, Hebei Banking Bureau, said the council has banned Handan Branch Banking illegal two rural banks, one of them just opened for "business", another collected illegal deposits of more than 900,000 thousand yuan.

It is understood, Hebei Handan Branch Banking Banking Bureau received by the masses that there is a suspension of Hebei Linzhang "Hebei Province, Yao Xin village bank" words outlets, community-oriented "business." Banking sector banking financial institutions after the agency finds is really illegal to build, and to build rural banks unauthorized parties issued a written decision on administrative ban, and in cooperation with the local public security organs, spot removal of the "Hebei Province, Xin Yao villages bank "plaque posted in front of the administrative ban announcement, the successful interdiction, Hebei Province, the first case of illegal banned the village bank.

Since then, the council has received reports from the public, Handan County, South BU Xiang Cui illegal opening song village of village banks. After verification confirmed that the agency is illegal village banks. Branch Banking and Handan Handan County Public Security Bureau, Trade and Industry Bureau and other departments of law enforcement groups more than 40 people, the institutions were investigated and banned.

After investigation, the agency named "Handan County village bank", at the end, "business", has more than 900,000 thousand in illegal deposits. Law enforcement officers in criminal detention staff of the agency for 2 people, sequestration of certain books and computer recording device, seized two vehicles involved, and the freezing of its funds to run the account.

And the Guang Group saga has hit Sino-Australian Trust (Google mistranslates it as Epoch below; Guang Group comes through as brilliance or glorious). Former posts on the Guang Group include Guang Group Needs ￥500 Million; High interest Loans To Blame; China Top 100 Developer Guang Property Rumored Bankrupt; Firm Says Capital Tight, But Not Bankrupt; Was Paying 21.6% Interest.

难逃光耀地产债务漩涡 华澳信托紧急诉讼求自保 (Hard to Escape the Guang Group Debt Whirlpool Sino-Austrlian Trust Urgently Sues to Protect Itself)

Epoch International Trust eventually be glorious estate debt crisis dragged them.

May 26th, 21st Century Business Herald reporter learned exclusively, Epoch Trust in Shanghai, Shenzhen will shine all real estate companies in the Lord of the business to court, because the presence of both a financial loan contract disputes.

"The recent issue of the glorious estate litigation, primarily from a single trust projects." Epoch Trust A spokesman told reporters. But he did not respond to a collection of previously involved glorious estate trust - Long Hao 1, is already repaid.

"We are doing asset preservation projects, disposal, etc. will not be able to come up with what glorious estate debt disposal program because they loans from financial institutions at group level, private lending is difficult to reason clearly." One financial institution who told the 21st Century Business Herald reporter.

"Shine line" included dock

Reporters saw, was included in the dock Epoch Trust companies, including: Huizhou City, Guangdong Province Zhongwang Group, Weihai Guangyao real estate development company, Shenzhen Properties Group Company and a glorious natural Yau-name (formerly known as Chan Kwok Ming). The case will be heard in court on June 16.

"This lawsuit involves not only the brilliance of Shenzhen Real Estate Group's projects, in addition to other related parties." Above Epoch Trust sources said, but he refused to disclose details.

Business information, Huizhou City Zhongwang Group registered capital of 100 million yuan, the legal representative Guo Chan floor, as well as the list of shareholders in Shenzhen City, south surplus gold investment company. Which is the controlling shareholder of Huizhou City Xin to our legal representative and sole shareholder is a natural person Yangzhen ancient square.

Reporter survey found that these defendants are also involved in the Trust's financial products. Publicly product information, Zhongrong Trust in September 2013 issued a collection of the Imperial Educational Trust Loan Trust, the scale of 140 million yuan, the period of 24 months. Huizhou City financiers Although the capital investment in education company, is the glorious real estate development company in Weihai, Huizhou City Zhongwang Group, Shenzhen Guangyao Yau-name and the actual controller to provide guarantees.

Business information, Huizhou City, the capital of shareholder's investment in education is the Huizhou Zhongwang Group. But reporters at the official website of the Financial Trust, finding out detailed disclosure of the product.

"Now the real estate investor and glorious aspects of the agreement have reached a preliminary understanding, and have a preliminary solution, but investors are reluctant to disclose the name and size of the trust fund." Epoch trust these people said.

Long Hao on the 1st of doubt

Previously, the market was once considered glorious Epoch Trust in real estate debt crisis, has to get out. The reason is that long-Hao 1 has repaid 600 million yuan.

In early June 2011, the issue of the establishment of long Epoch Trust No. 1, Hao glorious flow of equity income trust projects, the annual expected return of this product is 7.5% to 10%. Class A level of trust among the priority scale of 300 million yuan, the duration of 18 months, may be extended for 6 months; Priority Class B trust scale of $ 300 million, to renew the trust saved as 24 months.

$ 600 million in trust funds, 20.9 million yuan Trust as trustee plan accrued expenses; 579.1 million yuan as a glorious return on equity of 60% real estate right on the price, of which 3.4686 million yuan for the group to shine grant trust loans, 2.3124 billion for the Huizhou City Guangyao Real Estate Group, funds were used to support the Holland River and subsequent eight-year project to develop and operate Huihuan project.

Public information, early in March 2012, a class C share these trust schemes began to raise. A substantial increase in investment threshold to 1,000 yuan, 200 million yuan to raise the scale; period of 18 months (extendable for six months), the expected rate of return of 15%.

These trust funds are used to hold the transferee Jan Ming Guo Guangyao Shenzhen Properties Group return on equity of 83% right. In terms of risk control measures, there are land mortgage, equity pledge, joint and several liability guarantee three. First, the city of Huizhou City Guangyao investment companies, real estate companies, respectively, Weihai glorious glorious city, the land use right mortgage Weihai project, Huizhou City Guangyao Real Estate Group will benefit Central Project 33.6 acres of land use right mortgage.

Followed by 100% stake in Shenzhen shine Property Group, Weihai Guangyao 70% stake in real estate development and investment in the city of Huizhou City Guangyao 100% stake pledged; finally Guo Ming Chan and said a number of companies to provide joint liability guarantee.

The first source of repayment of the trust products in eight Dutch Water Project and project sales revenue Huihuan supplementary source of repayment is the future revenue projects and shine Weihai City project. June 2012, the trust fund Epoch · Long Hao 1 raised to invest in the project, to be questioned because of the slow return of funds will be difficult to repay the trust of financial assets.

Epoch Trust repayment in two phases of the product, respectively, in June 2013, December. June 2013, the Group has publicly responded to shine the media questioned his lack of money, indicates that full repayment of the Epoch Trust · Long Hao 号 1 A Class due early June 2013, the Class B trust loans, totaling 600 million million. Aspects Guangyao group also said that as long Hao first No. 1 source of repayment, the Netherlands Water in eight (Fei Li Guangyao · Port) and Huihuan Project (Guangyao · City Valley) has sold more than 1.4 billion, fully covering long Hao 1, 800 million yuan of the scale of the Trust.

"Before a large number of private lending has been exposed, we all thought that glorious or normal operating conditions, so in 2013 there are still many institutions lending to it, then we are not aware of such a large-scale private lending." Say these financial institutions .

But on May 26, 21st Century Business Herald reporter Epoch Trust in liquidation report revealed the official website, and did not see Chang Hao-related announcements on the 1st of liquidation. The Epoch Trust has also not confirmed whether the remaining 200 million yuan of trust loans have been fully repaid to reporters.