People familiar with the matter said that the news of Bao Fan, the chairman of Huaxing Capital's board of directors, has made some national commercial banks in China.To evaluate the risk of business exchanges with this company.
According to Bloomberg News on Tuesday (February 21), people familiar with the matter reported that debt banks such as Shanghai Pudong Development Bank, Bank of Communications, CITIC Bank and China Merchants Bank requested Huaxing Capital to provide more information about Bao Fan situation,To evaluate the risk of loans and other business exchanges, some banks have passed judicial channels to verify Bao Fan's situation through judicial channels in the past few days.
Chinese financial enterprise Huaxing Capital was confirmed to be unable to contact Bao Fan last Thursday (February 16), which caused the company's stock price to have dived last Friday, a decrease of 50%.The statement said that the board of directors did not know any information about Bao Fan who lost contact or related to the group's business and operation.
In Chinese companies, the word "lost contact" may mean that the parties are investigating or assisting the government's investigation.A person familiar with the matter said Bao Fan's family was told that he was assisting in the investigation.
People familiar with the matter said that Huaxing Capital and the Bank have always maintained business exchanges. The above evaluation did not trigger the bank requesting Huaxing Capital to pay the loan immediately.According to the recent performance report, as of the end of June last year, Huaxing Capital's total loan balance of about 2.3 billion yuan (RMB, the same below, about 448 million yuan) and a financing arrangement of 4.97 billion yuan was.
It is reported that the development of this situation highlights the opacity of China's business and regulatory environment to a certain extent. Even companies like state -owned banks with Chinese officials are sometimes unknown.
