Sign of the Times: Small Borrower Owes Banks 1 Billion Yuan; Flees

Cao Hairong of Jiangyin, owner of three separate companies, managed to cobble together loans and credit (such as materials) worth 1 billion yuan and now he has fled. Major banks are exposed to these losses. This story takes place in Jiangsu province, near Wuxi. There are starting to be more of these fleeing bosses. Last time was in autumn 2011, centered mainly in Wenzhou. Many individuals are caught up in the story, as well as major banks, because one of his three companies was a micro-finance company. The long article finishes with a quote about how in these stories, these unqualified borrowers always find a way to have the banks capital flow into their pockets.

By itself this story isn't major news, but it raises the issue of credit quality at the banks. There is never just one cockroach.

江阴小贷老板负债10亿跑路 浦发银行等被卷入

Jiangyin Sunan early spring town, quiet as ever. Let time fall back to January 2014, one day, quietly leave any mark from here, is full of bitterness frustration, or smiled calmly leave? In addition to his own, no one knows the control of the three local business owners in their homes at the moment, what is the mood.

Can know is that in his foot so far after three months, many people do this tossing and turning, sleepless nights. "At present specific figures can not be calculated, but any standard single-handedly funding trap concocted with a rough estimate of less than 10 billion of capital trapped." Jiangyin local one insider told reporters gave an account, "which includes civil lending, bank loans, arrears for materials, etc.. "

This is already not sit tight in the top spot in Jiangyin hundred counties nationwide suffer first "foot" of the event. By the end of 2012, once the chemical magnate Xuxue Wei owed more than 6 million debt on foot, accompanied by his new boss Cao Hairong fiber wing; June 2013, Jiangsu Rong Xu, head of the Thai was good leaving 800 million yuan bank bad debts leaving the United States; etc.. Behind these business owners go figure, huge debts and bad debts of private capital black hole is also the risk of torture again and again increasingly prominent hair Sunan economy.

A planned "escape"

"No prior signs until the media reported the news has come to realize that any standard 'foot' of." Ren told reporters the subject of a small creditor on the phone, and this is the only information he told a reporter, "relevant departments cover the news very strict. "exactly how to do any of the standard is quietly disappear where they fled, fled because of its large debt owed unable to repay or premeditated running, so far still can not get know.

However, you can be sure that any underlying foot accident, according to the person Wuxi local judiciary revealed that this was designed from the outset "escape" in the foot of the novice standard put their own name including real estate, stocks, equity and other assets have all been transferred, while he served as standard, together with his wife and children Zheng Qun group disappeared in the capital of this city, in addition to the huge debt owed to them in the presence of the city seems to be wiped out in general So far whereabouts a mystery.

In order to restore the former existence of any standard, sort out the ups and downs businessman trajectory reporter conducted a multi-day visit. However, whether the various government departments and major banks, or business dealings with any of the labeled partner they have chosen the word about, or even just around the corner Hong Mei civilians on foot after any standard existed only heard Jiangyin Such a boss.

Have fled either standard may not have thought of, his last shot to fame in such a way. During the visit, Jiangyin, reporters asked about the number of objects, including a number of local owners, government officials, and other financial industry insiders, the answer is to get the maximum sentence: "Before never heard of this man, but in his foot messaging open when it knew that he owed so much money Paolu. "

Even so, the reporter was obtained through interviews to piece together a few words is not complete "misappropriating - foot" road map.

According to public information display, in control of any standard Jiangyin three local businesses: Jiangyin funda Machinery Co., Ltd. (hereinafter referred to as funda machinery), put into operation in 2006, the registered capital of 20 million U.S. dollars, a total investment of 29.98 million U.S. dollars, the company is mainly engaged in metallurgical equipment manufacturing and high-precision machinery equipment, high-tech automatic digital control system components, and efficient welding equipment research, development and manufacturing; Fengyuan Rural Microfinance Ltd. (hereinafter referred to as Fengyuan small loans), the registered capital of 200 million, operating range for the "three rural" loans provide financing guarantee, to carry out financial institutions, business agents and other business approved by the regulatory authorities, which funda machinery accounted for 51% of shares. Funda Fengyuan Machinery and small loans are legal representative of any standard, in addition to any standard also controls the Haida Luo called Export Co., Ltd., a trading company.

According to local people Wuxi small loan industry association, said the establishment of any new standard in Jiangyin Fengyuan small loans is not much local fame, which was first started is by running a trading company, nearly two years before the industry began to get involved in small loans. Jiangyin government about who is revealed to reporters, he served as the Department of Jiangyin Xu, a town marked the early years of operations in foreign countries and Minerals Import and Export business, I heard that in Mexico also bought a mine, then began to emerge in Jiangyin, invested Other industries, which will include mechanical and Fengyuan funda small loans.

"Billionaires get together in Jiangyin, not to mention how much any standard visibility, he later fortune mainly by investing in Jiangyin Huangtu town, said to be invested, but more may still rely misappropriating." Jiangyin local a well-known business owners said so.

Swept away all small loans to corporate funds as a tool to run away when the big misappropriating

One afternoon in late April, according to information provided by the person concerned, the reporter drove to the factory town of Jiangyin City, Harbor City Huangtu stone manor area funda machinery is located. In addition to the two front security door, looking in through the back door of the factory was empty, handed him a cigarette, before the security gate, told reporters: "The previous owner was surnamed Ren, I heard later on foot, and now the boss seems substitutions, the whole plant is currently shut down all. "When a reporter said he paid for the materials came to ask funda mechanical owed when he looked reporter said," how come now, in front of a lot of people have come too, for the funda machinery arrears, the government has set up a special working group to line up sign deal with it. "

After that, the reporter also found nearby residents, who had played in the funda mechanical young day laborers, said: "I heard funda Mechanical foreign background, but funda mechanical efficiency seems not very good, two or three years the former seems to be fighting in the management of the company is very serious, the production management is also more confusing, the production line in fits and starts, something like a general treatment benefits. "

Subsequently, the reporter went to Fengyuan small loans location not far from the plant - No. 3629 Huangtu town Cheng Road. In a row house facade facing the street, the reporter saw the Jiangyin Fengyuan rural microfinance company brand, approached you can see, Fengyuan small loan company occupies a two-story shop, an area of ​​only 200 square meters so, in front also close to the "private lending norms to combat illegal fund-raising," the advertisement.

Walked in the door to the reporter found that the company still has one office, a room next to the office lobby, five or six people are gathered together for lunch, when the reporter said he came to see any of the standard demanded 2 million in arrears, the two men stand up and smiled and said:. "?. how to come to any standard already gone there for three months," "only two million, plus his money pit we have more than two zeros."

To sit down and then asked to know the original here waiting Fengyuan small loan companies are shareholders of the company of other agents, they are not the purpose of this standard, such as any of the back, but by other shareholders entrusted to handle any post-marked foot a variety of issues. "The fact is standard treatment after any mess left on foot, you do not know, he put us harm done."

It turned out small loans to shareholders in Fengyuan constitution, funda machinery accounted for 51% of the shares, other shareholders are local people, either standard when running, swept away all the money Fengyuan small loans, according to a rough estimate of nearly 2 billion. "There are individual shareholders own funds or to raise funds through other channels, the actual establishment of Fengyuan small loan just over a year, business is not much, and now we realize that he summoned up this small loan company is used to misappropriating his money ran roll clean, the rest of the debt and the various issues we have to bear. "Speaking of this, an agent angrily endless.

Fengyuan of a small loan office staff told reporters, rarely come to any standard, generally the size of the company are either the subject matter wife Zheng Qun group treatment, Zheng Qun group also responsible for financial matters funda machinery.

In this regard, the local legal person close insider said: "Whether or Fengyuan Machinery funda small loans that are either white standard tool for misappropriating the one hand, the use of mechanical funda assets that can be pledged to bank loans or from private lending, can this be for your own personal loan guarantee, or even allow other companies guarantees for loans; hand use Fengyuan small loan qualifications, can maximize suction gold can also be Fengyuan use small loans to be secured qualification. "

Confirms wears so much is litigation reporter obtained the information through the relevant channels, in many cases have been prosecuted to the Court, since that is how any standard, funda machinery, Fengyuan small loan as a co-defendant sued in This one, also implicated in a number of local logistics, steel, real estate, textile companies, most of them with either standard and funda machinery, Fengyuan small loans secured mutual relations of the enterprise.

In order to verify the situation, the reporter repeatedly call these eleven companies, but unfortunately, no one company or individual willing to be interviewed.

Huge debt maze public security authorities on suspicion of the crime Piandai formally opened

In the end to leave any mark on foot after the funding gap much, so far still not an exact statement, but informed sources said, leaving any standard debt and associated debt of nearly 10 million, while the debt constitutes a very complex , like a giant maze: "One of the most complex, than by any of the standard operations of bank loans and credit business class."

Comprehensive reporter learned through various channels of information display, leaving any standard debt mainly includes three aspects: First, private lending, including small loans were swept away Fengyuan funds; Second, the material shall funda mechanical arrears; three is yet to pay off the bank debt.

According to informed sources, the local court system in Wuxi, litigation and marked the arrival of the two companies is not less than 30 cases, and the amount in the hundreds of millions, "case materials are piling up." Stakeholders said. In these cases, it is also involved in a number of standard and funda any mechanical, Fengyuan small loan guarantee business, as well as any standard and funda machinery, Fengyuan small loan guarantees for the case of other companies. Currently, only incomplete information, according to the reporter can understand, in any standard, funda machinery, Fengyuan small loans for the defendant will have nearly a dozen lawsuits base price of $ 200 million.

Among the claims, the most complex but also the number of creditor banks, according to media reports had previously, in 2010 under the State-owned enterprise Jiangyin Harbor Harbor City Development Ltd. to provide security for the funda machinery to the Agricultural Bank of China Huangtu Branch lent 48 million, then after November 2011, October 2012 and September 2013 after a three-lending, the current loan balance of 33 million. In addition, funda machinery still exists 100,000,000 2,000,000 loan balance, which includes a 30 million subordinated loan and pen are concerned about three-year loans on September 26, 2014 expiration of a total 72 million, respectively. on June 6, 2014, April 23, 2014, expires on April 8, involving funding of 5 million, 25 million and 30 million.

Wuxi bankers said that these records can be found only through credit loan records, loan records to remove the funda machinery, there may be a number of bank credit business loans, the loans can not be displayed from the record out, there is a is that the use of other companies in the name of the loan, any standard and funda machinery, Fengyuan small loans and guarantees for the common use of funds.

Reporters learned that the court system has accepted the case, including Shanghai Pudong Development Bank will prosecute any standard, funda machinery, small loans of financial cases Fengyuan loan contract disputes, as well as co-defendant a local trading company, a total of 4,000 base price Wan, and Jiangsu Bank sued include any standard, Zheng Qun Qun, funda machinery, Fengyuan small loan companies and individuals, including a number of nearly 20 million yuan of financial loan contract disputes. In addition, CCB base price of more than 25 million lawsuit, Bank of China, more than 26 million lawsuit involves both standard and funda either mechanical, Fengyuan small loans.

Close to the local public security organs insiders told reporters that the current public security organs have been marked for any alleged crime Piandai formally opened. "In the course of the loan, there are a lot of false information." The person said so.

This record from any standard loans, funda machinery, small loans in Fengyuan evidenced. A local banking expert, said in an interview, according to banking financial institutions loan risk classification will be divided into at least normal business loans, special mention, substandard, doubtful and loss, the latter three collectively known as non-performing loans. "Funda mechanical several loans are subprime loans and special mention loans, indicating that the bank discovered the existence of these loans have been a problem. As for the pen 48 million yuan loans ABC, 3300, after the three left-lending million can be discerned, lending are generally called 'borrow new again for old' or 'new first borrow for old', regardless of what kind of enterprise funds can be explained very nervous. "relevant sources.

In order to verify the situation, the reporter had visited or call the above number of banks, as well as standard and the same as any other defendant companies, the answer is "not clear" or "disclose."

"Foot" alarm sounded urgent bank regulatory risk control

As the head of the hundred counties, economic development in Jiangyin, especially the development of the private economy in the country has been regarded as the benchmark of existence, there is only one place in Jiangyin more than 30 listed companies. "The spate of incidents in the foot while continuously stimulated economic development in Jiangyin nerve exposed many hidden problems, such as the problem of bad loans, private capital flows to regulatory issues, in seeking to make private capital more transparent and legalization At the same time, strengthen supervision and increase similar problems preventing, combating measures are even more urgent. "a long-term concern Sunan economic development experts said," This is Jiangyin issue is economic development throughout southern Jiangsu have to face on the issue. "

Xuxue Wei, Cao Hairong, Xu was good, and now plus any mark, which is nearly two years, a typical representative of the owner of Jiangyin foot. In fact, in recent years a large number of economic circle foot Sunan boss incident, they are merely representative.

Now, recalling that back again sadly departed, not difficult to find they have much in common, such as to the real economy in the name of misappropriating implemented financing, and until the day of the incident, people will find that they are more or few are related to illegal fund-raising, illegal Xi Chu, defrauding the bank loans and even contract fraud and other charges tied together. Of course, in this one always have to mention the financing of SMEs and other platitude, but the most important thing that can not be excluded businessman bones speculative mentality and capital flowing blood lust.

Faced with these problems in a natural, regulatory and compliance governance, is particularly important. In addition, there is still a need to raise this issue is that, in many boss at running events, there is not a sin Piandai few major banks have played an embarrassing role as the loan review and risk prevention and control work in place The situation is very huge loans common problems, such as the above mentioned 徐雪伟, Xu Liang, who was, were exposed to involve tens of million of bank loans.

"In any event marked on foot as well as other boss, the biggest problem is the most serious problem is that these bosses why banks always bundled together, which some people simply do not have the loan qualifications, can bank big Pen funds in various forms but always eventually flow into the pockets of these people, eventually forming huge bad debts. really need the loan business has always been shut out, it had to be said that the bank's internal risk control and management of a problem. "president of Wuxi, a local financial industry association said," This could explain why these bosses after the accident, although not announced, but insiders often have some banks will follow the wayside. "