Nongovernmental financing and associated guarantees have again brought down a piece of domino

Reporter Yan Qinbo Chengdu coverage

Private financing and related guarantees once again pushed down a piece of dominoes, this fall is one of the largest private-owned guarantee company in Sichuan Province - Huitong Credit Guarantee Co., Ltd. (hereinafter referred to as "Huitong Guarantee"). The 900 million yuan registered capital of the security company, July 8, the total loss of executives. 21st Century Business Herald survey found that Huitong secured shareholders to use its many private investment companies and Huitong security itself, had a monthly interest rate of about 2 points from private financing.

In addition, a report released by Huitong Securing Business in the 21st Century Business Herald shows that at the end of February 2014, the company had a total of 4.578 billion bank balances secured by trusts, 245 million credit balances guaranteed by trust companies and 65 million guaranteed by small loan companies Guest loan guarantees 196 million, engineering guarantees 193 million.

After the security company executives run the road, these private lending and bank loans will be exposed to the risk exposure. The 21st Century Business Herald noted that banks have noticed the risks of Huitong's guarantee from November 2013 onwards. In April 2014, Huitong guarantied the risks of cooperation with the trust companies, but in the end failed to cause more Financial institutions are alarmed so much that they have evolved into today's situation.

No contractual loan, monthly interest 2%

July 9, in Chengdu City, the financial institutions gathered in the Air China Century Center Tower A, 11th Floor Huitong guarantee thousands of square meters of office, not one of the company staff, but it is full of investors. They hold Huitong guarantee and its associated financial company receipt of payment anxiously waiting for Huitong guarantee management's news.

The company executives office door, have been affixed to the Wuhou District Public Security Bureau of Chengdu seal, dated July 9.

On July 8, Huitong Security Including Yang Zhigang, Chairman of Board of Directors, Xie Yingjie, President, and Liu Yuying, executive vice president, collectively lost their positions. In the 21st Century Business Herald, reporters from the 21st Century Business Herald reportedly shut down the above multiplayer mobile phones. Informed sources, many people have been to Hong Kong to the United States. However, sources said Xie Yingjie eventually returned to Chengdu.

The news from Sichuan Province and Chengdu Finance Office was that investigation teams were set up at provincial and municipal financial offices and the investigation was under way. They did not grasp the reasons for the above executives to flee, nor did they know about the amount of private fund-raising. A person close to Huitong Security told the 21st Century Business Herald that "the local government may temporarily take over the company to help Huitong guarantee the re-operation and hope that the banks will not interrupt the business cooperation with Huitong." However, in this view, the 21st century economy Reporter did not get confirmed.

"Without a money management contract, Huitong guarantees that this has been done since 2011, with only one receipt of payment, a monthly payment of 2% after the investment and an appointment two days in advance if withdrawals." One investor Say.

Another investor told 21st Century Business Herald that they did not know what projects their money was being given and only knew that all the principal and proceeds would be guaranteed by Huitong.

21st Century Business Herald reporter saw an investor invested 350,000 yuan in Chengdu Rongyuan Assets Management Center (Limited Partnership) on March 19, 2014, and there was no official seal on the receipt of payment. "They used to seal, but later said the two companies are no longer associated with the seal, but in marketing (financial margin), they clearly say that Huitong secured its affiliates." A long-term investment in the financial edge People say.

Financial assets management center and Huitong security what is the relationship? Huitong secured 20 or so wealth management companies and secured loans to its guarantee clients, as did Chengdu Mekworth Investment Management Co., Ltd. and Financial Assets Management Center. People close to Huitong guarantee said.

An audit report issued by Huitong at each of its branches in late 2013 indicated that due to the influence of "Lai Yong Incident", "Zheng Jia Feng Incident" and "Li Jin Dong Incident", Huitong secured poor financing channels, in which case the Company should be active Take measures to open up the private market and do a good job in civil guarantee business.

In addition to the associated platform, Huitong Guarantee also uses other third-party money management companies to conduct similar operations, the model is to provide investors with a monthly interest of 1.5%. A contract from an investor verifies this, but the contract is signed for an interim wealth management loan.

"The reason for the collective failure of Huitong executives is that the funding chain for private financing is probably ripped off," said the person close to Huitong.

He said Huitong's more than 20 wealth management companies are mostly Huitong guarantee shareholders or employees. "There are a large number of shareholders and one reason Huitong Security is facing chaos today." According to the information in the 21st Century Business Herald, Huitong guarantees only 3 Shareholders of the company, more than 20 natural person shareholders, the largest shareholder of Sichuan Huanglong Tourism Co., Ltd., the company's legal representative for the Huitong security Yang Zhigang chairman.

Private financing more than 200 million?

"The economic downturn, it may be that the repayment of borrowers does not actively undermine Huitong." Local financial executives speculated. Investors have told 21st Century Economic Reporter that according to their statistics, private financing involving Huitong guarantees is at least 200 million yuan.

In an interview with 21st Century Business Herald, Suncome, vice president of Huitong Security, said that it is still in the public security department to help investigate the case of Yang Zhigang's disorganization. Yang's losing touch certainly has an impact on the company, but Huitong guarantee will continue to operate.

Huitong guarantees a large-scale guarantee industry in Sichuan and is the vice president unit of Sichuan Province Financing Guarantee Association. Its with banks, trust companies, housing provident fund management center are guaranteed business dealings.

In the 21st Century Business Herald, two Huitong Securing Services Marketing Activities were obtained, one in October 2013 and the other in February 2014.

Comparing the two data shows that with Huitong secured business transactions, including Guiyang Bank, Sichuan Rural Credit Cooperatives, China Merchants Bank and more than 20 banks, and Huaxin Trust, Jingu Trust and other trust agencies, including housing provident fund management center. However, the data does not detail where the cooperation with the housing provident fund center.

Business news shows that in the end of February 2014, Huitong guaranteed a total of 4.578 billion outstanding loans from banks, 245 million trust companies guaranteeing balances, 65 million small loan companies, 196 million straight-line loan guarantees and 193 million project guarantees.

Among them, the financial institutions with the highest proportion are local commercial firms in the city and rural credit cooperatives in Sichuan. As of the end of February, the balance of guarantees was 742 million and 539 million respectively, accounting for 15.19% and 11.03% respectively. CMB and Guiyang Bank followed the guarantee balance 421 million and 402 million.

As of press time, Sichuan Rural Credit Cooperative failed to respond to the 21st Century Economic Report interview request; another city commercial firm said: After verification, the business guaranteed by Huitong normal operation, but the bank will also continue to pay attention to the progress of the incident.

In addition, large-scale state-owned banks such as agriculture, construction and medium-sized state-owned banks, as well as Xingye and Huaxia stockbrokers and other urban commercial banks including Harbin Bank, Shanghai Bank, Bao Ban Bank, Dalian Bank, Nanchong Commercial Bank and Deyang Bank, Among them, the majority of the balance of insurance in billions.

An accident precursor? Many risky events from the end

21st Century Business Herald survey found that after at least three risk events revealed Huitong guarantee the risk, but only attracted the attention of a small number of financial institutions.

In April 2013, a bank in Chengdu found that Huitong Security had 7 allegedly linked guarantees in the guarantee business and deemed these businesses bad.

Immediately thereafter, the bank conducted a systematic examination of all the guarantee businesses guaranteed by Huitong and suspended the business cooperation with Huitong Guarantee. Subsequently Huitong secured additional risk precautionary measures to resume cooperation, but the secured credit limit dropped from 800 million to 320 million, and then dropped to 260 million.

Eight months later, in December 2013, Huitong secured Li Jindong, a director in charge of Qingbaijiang Branch, for his personal seal of forgiveness and forged a letter of guarantee in the name of Huitong Security for a total amount of over 30 million yuan. Afterwards, Huitong Security undertook the above loss under the communication of the local financial authorities.

After this incident, in January 2014, Huitong secured the stamps (official seal, financial chapter, chief officer's seal) of all subsidiaries. Close to the company told the 21st Century Business Herald reported that this is the reason why Huitong secured Huitong's official seal on the collection vouchers of the affiliated financial companies thereafter.

This event once affected Huitong Guarantee and the cooperation of a number of financial institutions. Minsheng Bank did not appear in the list of cooperation thereafter. However, banks including Guiyang Bank and Huaxia Bank have already been marked as the unimpeded channels of cooperation by Huitong Security.

21st Century Business Herald correspondent called Guiyang Bank on the matter, and the staff in Chengdu Branch of the bank did not reply to the matter. Huaxia Bank Chengdu Branch held a guarantee downstairs at Huitong. No phone call was received by this branch as of press time.

In April 2014, Huitong secured a notice of internal issuance, requiring all business departments and surrounding business departments to collect the interest from the relevant borrowers of "Jingu Trust" and "Huaxin Trust" from the 10th of each month until the interest is transferred to the trust account .

Loss of the borrower and interest payment is not active, take the door reminder work.

21st Century Business Herald also found that before the Huitong Guarantee also issued a similar letter of credit loans reminder, and was urged to repay the unit is actually Sichuan Hengda Investment Management Co., a private finance company.

Huaxin Trust · Xinhui No. 1 SME Development Fund Trust Plan Loan for high-quality small and medium enterprises in Sichuan Province, the annualized return rate of 9% -9.6%, the size of the trust of not less than 30 million. The fundraising project started in December 2013 and has a life span of one year. In 2014, Xinhui 2 SME Development Fund Trust Plan was issued with a total size of 67 million. Golden Sun · Sunflower 9 SME Development Trust (Phase III), was established in August 2013 with a scale of 102 million with a one-year extension. The above products are guaranteed by Huitong Guarantee.

"Huitong Security if the collapse of the financial sector in Sichuan too much influence, the relevant departments should not sit back and relax, but the Huitong security has been greatly injured, to really recover from difficult." Analysis of the local financial sector.