Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews 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.

• published: 19 Dec 2013
• views: 109