Shanxi Richest Man’s 30 Billion Liabilities Reveals China Bank Wealth Transfer.
The People’s Court in Liulin County has announced the
financial situation of Xing Libin, the richest man in Shanxi.
The court alleges that the financial liabilities of
Xing’s Liansheng Group is nearly 30 billion RMB.
Xing Libin hosted the wedding of his daughter
last year, with a total cost of 70 million RMB.
However, now he has admitted insolvency, and
announced that he is running asset restructuring.
Experts believe that the Chinese Communist Party (CCP)
transfers the money in banks to a few privileged people.
The CCP wants to show a strong regime.
If there are too many bad debts, then the regime
will transfer them to the public through inflation.
On November 29, the People’s Court in Liulin County,
Shanxi Province, announced it would accept the
restructuring application of Liansheng Energy Limited.
It also accepted the application for another 12 enterprises
that are registered under Liansheng Energy Limited.
According to the court’s announcement, the financial
liabilities of the Liansheng Group is nearly 30 billion RMB.
There are many financial issues for the company.
It is facing tax arrears, employee pension
insurance fees, engineering fees, materials
fees, and equipment fees, among others.
More than 10 private enterprises with secured relations
in Liansheng Group owe more than 20 billion in credit.
The restructuring of the Liansheng Group
has the support of the local government.
The Liansheng Group is the largest private
enterprise in Liulin, Shanxi Province.
Xing Libin said at a press conference that Liansheng Group
restructuring will coordinate with the restructuring of assets.
Wen Rui, commentator: “In particular, the priority
of these massive loans is for personal interests.
This is instead of a priority for repayment. This exists
in many state-owned enterprises and local governments.
They do not intend to repay any money, and
this so-called asset restructuring is the same.
They cannot afford the repayment."
The Liansheng Group debt is related with the National
Development Bank, and China Merchants Bank.
It’s also related to the Bank of Communications, Beijing Trust,
Investment Trust, Jilin Trust and other financial institutions.
Wu Xiaoling, former Vice Governor of the Central Bank
of China, revealed the secret of the Chinese millionaires.
According to mainland media reports,
Wu Xiaoling was ridiculed by friends.
The central bank policy caused a serious debts in the banks.
Wu Xiaoling fought back, saying that “without the bad
debts, there would not be so many rich people in China."
Therefore, what is the deeper meaning
of Xing Libin’s financial situation?
Wen Rui: “In making rich people in China, the
bank has acted as a wealth transferring machine.
The wealth comes from hard-earned
money from millions of Chinese people.
Creating a rich man will also create many poor people."
Early last year, Xing Libin used 70 million RMB to hold
an extravagant wedding for his daughter in Sanya, Hainan.
There were Ferrari dowries. Celebrities, including
Jay Chou, Feng Gong and Song Zuying, attended.
The wedding program was full of A-list
actors in the Chinese Communist Party.
The wedding was presided over by the big China
Central Television hosts Zhu Jun and Zhou Tao.
It was reported that “the wedding
is comparable to the CCP Gala".
The wedding hosts also praised the Liansheng Group.
It described the group as taking responsibility
for establishing a wealthy and powerful country.
The purpose of the group also included running strong
business, to make wealth for employees, and a rich society.
It is known that at the time, a wage arrears
situation appeared for the Liansheng Group.
The banks and trusts that had a lending relationship
also became concerned with the groups solvency.
Xie Tian, Professor at the University of South Carolina
Aiken School of Business: “In fact, this coal boss, and
vast wedding, is a common practice in white-collar crime.
The tenser the capital situation gets, the more lavish
a wedding he will run, to try to prove their strong capital."
The first step in restructuring is to complete the
investigation of all assets and the debt situation.
The next step is to pay off all the
corporate tax arrears and payroll.
After that, there should be deals with various financial
institutions to resolve debts, which may involve the debt
relief, interest-free loans, rollovers, and early maturity.
Xie Tian: “This matter reveals the iceberg
of the Chinese false economic bubble.
If a large area triggers the situation, all
state-owned banks will collapse in the end.
Finally, the CCP Central regime will only be able to print
money to rescue these banks, and to fill the black hole.
The public will absorb all of this, in the form of inflation."
There are 95 enterprises in China
listed in the 2013 world top 500.
It has been criticized that there is a fundamental difference
between the China’s rich, and the rich in other countries.
Large foreign companies are starting
from scratch with painstaking operations.
However, powerful companies in China will be either
state-owned enterprises, or in private sectors following
Deng Xiaoping’s policy of letting some people get rich first.
They will make the state-owned assets
become doubtful and create bad bank debts.
Interview /Editor/LiuHui Post-Production/LiYong