From WeChat Public issue: ID: eeo-com-cn, by Cai Yuecun.
In the current financial markets, investors need to be responsible for their own investment judgment, "seller due diligence, buyer egotism," need to use legal compliance channels to collect debt.
Editor's note: This is a New Year's letter from the Economic Observer. On the occasion of the New Year, we decided to write this letter. The letter is the one you are - our readers, interviewees, friends who have supported us or are affected by our reports. Every one of you, together with us, witnesses what happened in this era. We have already heard the strong Chinese taste, but we hope that this letter will bring you more happy temperatures. We believe that this is the beginning of our other gathering. In addition to the news reports that you are familiar with, tell you what happened to those reported things, telling you about our thinking in the past and the beliefs we defend. .
(photo source: economic observation Network)
Time flies and everything is renewed. At the beginning of the letter, I wish you all a happy Spring Festival.
This year, it was a bond default year, and more than 160 bonds defaulted. As a reporter who pays attention to the bond industry, he witnessed the occurrence of multiple default events and contacted various creditors and debtors. I deeply understand the shock, heartache, helplessness of creditors after the breach of contract...
Among you, there are individual investors or product holders who have invested in them; there are many licensed financial institutions, such as banks, insurance companies, trust companies, etc. The most impressive thing is that 13 financial institutions have sent letters to the China Banking Regulatory Commission and other ministries for help, and 13 of the financial institutions have regretted when they talked to me. They should not blindly rely on "state-owned enterprises". Identity. Despite this, in 2019 they still have to move on the road of debt collection.
Many people think that "the debts are repaid and the money is justified." Isn't this the way of traditional thinking? Why in 2018, a large number of investors have worked hard to "collect debts" but they still have no results. After the Spring Festival in 2019, how should we rationally "collect debts"?
I would like to tell you that 2018 was the year of financial product "wave of default", but also the year of the country's explicit proposal to break the rigid payment.
In 2018, because of the news reported in the debt field, during the reporting of the news, I saw a large number of corporate defaults, and there are many star companies, such as the Beijing Top 100 Private Enterprises Daily Chemicals Lova Group, and the “Central Enterprises” China Youth Travel Industry, which is known for its wealth.
In addition, in addition to corporate default, 2018 I also came into contact with a number of local government investment platforms also default, such as Wuxuan City. Although the government's "faith" has always been upheld, I would like to say that we should also be cautious, not blindly follow the crowd.
Standing at the time of the Spring Festival in 2019, although it is still inevitable to talk about debt, but because of various types of defaults, many investors are still rushing to "debt" during the Spring Festival of 2019.
So, I would like to share with you three cases, including private enterprises, state-owned enterprises, urban investment platform default cases. In these three cases, we can see how different types of institutions deal with debt default and how to deal with the different ways and means, for everyone to think and share their experience.
Case one: private Enterprise-the default of Lova Group
There have been many private defaults in 2018, with 31 of the 43 new default holders, 6 state-owned enterprises and 6 other types of companies (public enterprises, Sino-foreign joint ventures, etc.), with their share rising to 72.1.
In the case of private enterprise default, I would like to talk about the Luowa Group, because the exclusive news of the series of reports on this topic is basically reported by me, and I am deeply touched. Therefore, for you, how to treat the main body of private enterprises, how to better recover debts with private enterprises may be a great reference point.
The first time I heard about the debt default of the Lova Group was in early December of 2018, I knew that the product of the Lova Group was endorsed by the star Xu Qing, and the advertisement of Lova Laundry Liquid was vaguely remembered. And Xu Qing is the actor of Ying Ying, the female director of the Li Yapeng version of the Li Yapeng version. In addition, I have heard about the development of the Lova Group's daily chemical industry.
Lova Group defaulted on bonds on the night of Dec. 7, 2018, and around 10:00 on December 8, I arrived at the Luova Tower in Wangjing, Beijing, where the group is located.
I had no previous acquaintance with anyone in the Lova Group. Now, if not for this interview, I would not know the relevant staff of Lova Group.
At first, I entered the second floor of the Lova Group Building and told the security guard what I wanted to interview at the door. The security guard is very kind. Let me wait a minute.
Soon, the party secretary of Lova Group came out to receive him. She did not refuse to be interviewed by the media after the company defaulted on its debt.
This is also my first interview with the executives of the Lova Group. The communication and exchange expressed that the company's main body credit is very good, there are many high-quality assets, and corporate default is caused by temporary cash flow pressure. Other things, she can not reply. Let me go back and wait for the call, and there will be news to communicate further.
Because there are many investors to the Lova group debt collection, or out of pressure. Lova Group again invited me to interview the communication. The second time, I met Hu Keqin, chairman of Lova Group.
During the interview, Hu Keqin almost knew everything. Among them, a very important point is the bank's loan, which caused the company's cash flow to suddenly break. And he told me that in 2018 he spent a whole year running financial institutions financing, deeply felt the cruelty of finance.
Later, the party secretary of the Lova Group and I passed through a lot of intermittent, and I also know that they quickly gave a debt service plan, the first transfer of equity, and even absolute control; the second is mortgaged quality assets, such as the Lova Building; Third, seek a bailout fund and wait for the government's rescue assistance. After all, the Lova Group is also a top 100 private enterprise.
After the settlement of the repayment plan, the follow-on is that the investors take measures to recover the debt according to the bond default treatment.
Therefore, after the private enterprises defaulted, I felt that the enthusiasm of private enterprises for repaying debts was very high. They have been actively responding to the parties. However, private enterprises sometimes have limited resources. After the debt problem, many financial institutions are almost unwilling to provide financing again.
Therefore, I would like to share with members that in the recovery of debts with private enterprises, it is like saving a seriously ill patient. If we can leave some room, the enterprise may be able to be reborn again and tide over the difficulties. However, if the private enterprises do have business losses, or the actual control of the incident, should be broken, take legal measures to recover debt.
Case 2: City Investment Platform - Wuxue City Investment Guarantee Products Default
The first CICC default in 2018 was supposed to be Yunnan CityCorp, which has since defaulted on individual CICs.
However, because traditionally, everyone’s “belief” for city investment is very strong, but in 2018, the “belief” of city investment was gradually broken, and financial institutions began to be cautious when they financed the city investment platform.
The time for default of the asset management products guaranteed by Wuxue City Investment was at the end of March 2018, but after 3 months of extension, I learned the details from the investors.
During the period, I try to with the actual financier Wuxuan World Union Company, Wuxuan City contact.
However, it is not entirely discovered that Wuxue World Union Company is a real municipal construction project, and Wuxue City has invested in guarantees. However, municipal projects have not generated high cash flow, and are still under construction.
But the city investment platform and the financial institution produces the debt generally also is the short loan, faces the city investment company such enterprise infrastructure project almost all is the long-term investment, many city investment platform needs to borrow the new to repay the old. This is something we must pay attention to.
The trustworthy point is that the city investment platform generally does not “repay the account”, but only expresses the idea of delaying the redemption. However, after all, financial institutions as product managers, this situation can not be accounted for with product investors.
Finally, after the end of multiple interviews and the exclusive exposure of the manuscript, Wuxuan World Federation negotiated with Wuxuan City to pay its debts. In December 2018, the manager of the capital management product learned that Wuxuan World Federation and Wuxue City had amortized all their debts.
Therefore, I would like to share with you from this case: City-based platform will not default, but in the investment, we must identify the main body, not as before, blindly "believe" CICs. However, if you unfortunately "step on the thunder" platform, it is best to actively negotiate a solution, rather than waiting in place.
Case 3: China Youth Tours Industry financed under the name of "State-owned Enterprises"
Another default occurs in the main group of state-owned enterprises default. However, in 2018, JTC's default is particularly concerned.
Because China Youth Tours called the company "actual controller" when it raised funds, but after the capital management product defaulted, the group did not accept the term "actual controller." If true, China Youth Tours Industry in the financing is to borrow the name of the "state-owned."
At the end of 2018, 13 financial institutions collected debt from China Youth Travel Industry and sent a collective letter to China Everbright Group. Because China Youth Tours has a 20 percent stake in China Youth Tours, and when it comes to financing, it is known as the "de facto controller" of the company. And China Youth Travel Group in the early 2018 will all be transferred to China Everbright Group.
So, who is the "actual controller" of Zhongyung Industry? Is it the state-owned Zhongyong Tours Group? However, the youth travel group related personage does not approve.
The 13 financial institutions have no choice but to appeal collectively, but they still have failed.
At the beginning of financing, the 13 companies that provided loans to China Youth Tours considered that China Youth Tours was a "state-owned enterprise" and should not have any problems. However, the current experience tells them not to blindly trust a subject, or specific case-specific analysis.
From this case, I want to share with you: even if it is a state-owned enterprise, financial institutions must also distinguish the credit risk of the main body when providing financing, instead of blindly relying on the status of state-owned enterprises to provide financing. And, in the subsequent debt collection, actively negotiate the communication solution. If the consultation opinions are not consistent, you can also take the legal route and demand preservation. Previously, the state-owned Northeast Special Steel was insolvent and liquidated, and the bond redemption rate exceeded 20%.
These three cases are very representative and I hope to share with you and give you some experience.
So, in 2019, it is hoped that investors can identify the risks and that the main body is the king. Not because of private enterprises, state-owned enterprises, the city of the "identity", to distinguish treatment.
However, it is not difficult to find that in breaking the financial environment, investors should also rationally look at default events, and, after default, in the process of debt recovery, investors can stop losses in time to save property. But in the current financial market, investors are responsible for their investment judgment, "the seller is responsible, the buyer is the buyer," and need to collect debt through legal compliance.
In 2019, I wish you all the best in the pursuit of debt, and the investment in 2019 is less "stepping on thunder."
Economic Observer reporter Tsai Yue-kun
February 11, 2019, the seventh day
This article from the micro-channel public number: The Economic Observer (ID: eeo-com-cn), Author: Cai Yuekun.
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