Tuesday, December 1, 2015   

Troubled miner sets ICBC loan poser

Tuesday, December 11, 2012

Industrial and Commercial Bank of China (1398), the world's biggest lender by market value, is facing a loan default of as much as three billion yuan (HK$3.72 billion) by a Shanxi-based mining company, mainland media said yesterday.

ICBC's president Yang Kaisheng and chairman Jiang Jianqing visited Shanxi provincial officials to find a solution to the problem, but no conclusion was reached, the report said.

In 2010, ICBC's Shanxi branch refused a loan to mining firm Zhenfu Energy Group and referred it to China Credit Trust for fund raising instead, Guangzhou-based Money Week magazine reported.

The firm, whose trustee is ICBC, issued a trust product worth three billion yuan to Zhenfu Energy in February 2011, due in 2014. The People's Insurance Co (Group) of China (1339) owns a 32.9 percent stake in China Credit Trust.


Shanxi police accused Zhenfu Energy of illegal fund-raising and absorbing underground deposits, which totalled about 413 million yuan, the magazine said.

The mining firm has faced three lawsuits in the second quarter, all due to problematic fund raising, the report said. Therefore, the coal miner is probably on the brink of liquidation.


© 2015 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2015, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.