(Beijing Bloomberg) According to people familiar with the matter, the news of Bao Fan, chairman of Huaxing Capital's board of directors, has made some national commercial banks in China.Business inquiry to evaluate the risk of business exchanges with this company.
Bloomberg News reported on Tuesday (February 21) that the suddenness of the incident has reflected the lack of transparency in the Chinese business environment to a certain extent. Even if a subject with close contact with government departments like a bank, sometimes it is unknown.
People familiar with the matter said that the 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's situation to evaluate the risks of loans and other business exchanges.People familiar with the matter said that some banks have recently confirmed Bao Fan's situation through judicial channels.People familiar with the matter required anonymous because they were not authorized to publicly comment.
Bao Fan suddenly lost contact last week or was related to cooperating with government investigations. This incident made the Chinese business elites restless.Huaxing Capital is a well -known investment bank that focuses on the technology industry, and Bao Fan is the chairman of the board in the company.He has a wide range of connections in various industries and has been highly respected by some large companies.
People familiar with the matter said that Huaxing Capital and Bank have always maintained their business exchanges. The above evaluation did not trigger the bank to ask them 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 approximately 2.3 billion yuan ($ 447 million) and a financing arrangement of RMB 4.97 billion.
