Caixin OnlineFinance & EconomicsTop Stories Finance Fool's Gold Behind Beijing Loan Guarantees
03.20.2012 14:44

Fool's Gold Behind Beijing Loan Guarantees

A credit guarantee firm is accused of using 'wealth management' schemes in a game its clients and banks also played
By staff reporters Yang Na and Ma Yuan
 
a

The domino effect began in January when bankers reacted to rumors of a liquidity crunch at one of Beijing's most prominent loan-guarantee firms, Zhongdan Investment Credit Guarantee Co. Ltd.

Several banks that cooperated with Zhongdan smelled trouble and started calling loans they had issued to companies backed by the firm.

At the time, Zhongdan counted more than 300 clients and 3.3 billion yuan worth of loan guarantee contracts, according to the firm's President Liu Hui.

We hope you have enjoyed your free articles for the month
REGISTER to get 5 more free articles, or SUBSCRIBE to get full access to Caixin
Already a subscriber? Log in now
COMMENTS (0)
Sign up to receive our free daily newsletter

LATEST VIDEOS

Latest Issue
On the Cover:

' Lead in Cooperation '

World's two biggest powers must remember their common interests outweigh any differences, former U.S. Secretary of State Henry Kissinger tells Caixin in an exclusive interview


Issue 88
April, 2015

POPULAR GALLERIES

SUBSCRIPTIONS

Caixin-China
Economics & Finance
Latest Issue:
' Lead in Cooperation '
World's two biggest powers must remember their common interests outweigh any differences, former U.S. Secretary of State Henry Kissinger tells Caixin in an exclusive interview
Issue 88
04.01.2015

Subscribe       |       Newsletter        |        FAQ