HFIG Fallout Still Going: Default Could Impact Guangzhou Securities IPO

The default of Hebei's largest and state-owned credit guarantee firm is still reverberating throughout China's economy. Now an IPO of Guangzhou Securities could be derailed by a default tied to HFIG. This isn't a big story in and of itself, involving little more than 100 million yuan, but HFIG defaulted more than year ago and now a seemingly unrelated firm's IPO could be affected. That is something to consider as default risk rises.

Following the recently Hebei involve financial investment event of default, the Golden Eagle, a wholly owned subsidiary of Shenzhen Qianhai Golden Eagle Asset Management Co., Ltd. (referred to as "pre-sea Golden Eagle") is a subsidiary of Information Management program is once again in the middle of the storm.

Golden Eagle is 49 percent owned by Guangzhou Securities, which in turn is a subsidiary of Yuexiu Group, which would like to list the firm.

More than investors, "First Financial Daily" said that the amount of liquidated more than 100 million yuan project, but the project financing for the Tianjin Long Bao line now has an emergency fund chain, Golden Eagle and Golden Eagle Fund Qianhai thin book assets is extremely limited, they the only hope lies in the back principal Guangzhou Securities body.

Guangzhou Securities Fund holds a 49% stake in Golden Eagle, its largest shareholder and former sea eagles "Grandpa." In the opinion of investors, Guangzhou Securities now is preparing IPO, if the issue was not before the sea Golden properly handled, the listing process Guangzhou Securities may also be slowed down, it has become the largest investor hopes to recover the principal amount.

Public information, Guangzhou Securities in 1988 by the People's Bank of China approved the establishment, it is one of the earliest established securities company, September 1, 2014 founding meeting was held stock company, officially changed to "Guangzhou Securities Co., Ltd." January 2016, Guangzhou Securities completion of the capital increase, the registered capital of 5.36 billion yuan. After the share reform, Guangzhou Securities IPO cleared the way, with all listed Orient Securities, First Capital and other brokerage Huaan Securities I would, Guangzhou Securities also in full swing in preparation for listing.

Guangzhou Securities Yuexiu Yuexiu Group Holdings, a subsidiary under the platform, as the chairman of Yuexiu Group, Zhang Zhaoxing words and deeds of Guangzhou Securities significant. Two years ago, Zhang Zhaoxing proposed objectives listed Guangzhou securities. He said at the time, already clear Guangzhou Securities Program 2016 target market, which is one aspect of Yuexiu Group, asset securitization program.

Qianhai Golden Eagle and information management plans overdue payment event indeed attracted the attention of Guangzhou securities. "First Financial Daily" exclusively learned that recently, President of Guangzhou Securities Qiu three rounds and Golden Eagle Fund and former Inspector General Su Wenfeng Sea Eagle executives will be co-sponsored investor communication. Qiu three rounds, etc., said Guangzhou Securities holds a 49% stake in Golden Eagle Fund, will bear the responsibility to promote the progress of events.

As of now, investors remained unanswered Guangzhou Securities regard. "I can only wait for the reply Guangzhou Securities, Guangzhou Securities wash their hands if, they can do is resort to the law." The investors say.

Sohu: 金鹰基金子公司资管三度违约 或拖累广州证券IPO