Chinese billionaire disappears, banks concerned about loans

Not sure what to make of this story, if this guy is genuinely missing or he's fled to avoid debt.

Dalian Businessman Who Built An Empire Vanishes

China Construction Bank's preliminary investigation found that the amount of its outstanding loans to Shide Group has steadily declined over recent years, but still stands at roughly 1 billion.

The current loans are "relatively well collateralized and have not been classified as non-performing loans," said a loan officer from CCB's Dalian branch bank. He added, however, that there was no guarantee that the loans would be repaid in full because all concerned parties had become extremely wary of making further loans to Shide Group, which could put the corporation in financial distress.

Also hanging in the balance is a 600 million yuan debt from a wealth management product CCB issued in 2010 on behalf of Shide Group. The debt comes due in May, but it is unclear how much risk the bank assumed.

It is not mentioned in the story at all, but Bo Xilai used to be in charge of Dalian. There may be nothing to that, but then again......

Xu has also reaped enormous profits from investing in the equities market. But some of his transactions were suspected by securities regulators of involving insider trading and infringing upon listed companies' interests.

Currently, no special risk reviews have been ordered for financial institutions, including city commercial banks, in which Shide Group holds shares, an official from the China Banking Regulatory Commission said.

However, Xu's disappearance and the dark clouds hanging over Shide Group have many in Dalian nervous. "Until it becomes clear whether the authorities intend to use Shide as a breach to hunt down people behind it, every government official and business person in Dalian feels imperiled," said a local bank executive, who declined to be named.