Article 9 of "Several Opinions on Further Strengthening Financial Trials" issued by the Supreme People's Court on August 20 17 stipulates: "If a state-owned enterprise engages in financial business in disguised form and obtains credit funds from financial institutions and reloans them at high interest rates, it shall deny the legal effect of its lending behavior according to the provisions of Article 14 of" Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases "and propose the judicial action of the corresponding competent department.
State-owned enterprises lend at high interest rates, and their lending behavior is invalid, and they may bear the responsibility of administrative fines or even penalties.