China's Response to the Heavy Burden Event

The measures taken by the Finance Bureau for China Bell Guarantee include: 1. Revoking the financing guarantee business license of China Bear Guarantee; Second, request the public security and other relevant departments to help find the missing persons guaranteed by China Xiong; Third, the government will set up a takeover agency; Fourth, come up with a plan to dispose of creditor's rights as soon as possible, promote bankruptcy and reorganization, and private enterprises can take over in a market-oriented way. At the same time, the government will consider giving some preferential policies; After the shareholder structure changes, new licenses will be issued.

On March 1, the Beijing Financial Work Bureau announced the preliminary solution of the "Zhong Dan Incident Emergency Working Group": the bank will strictly perform the loan contract according to the law and regulations, and the normal loan will not be collected; Banks should properly handle the deposit according to the specific circumstances of the credit contract of enterprise customers; For borrowers with good credit records and normal operating conditions, the bank shall handle the loan extension business in accordance with the normal procedures of the bank; The bank will send a special person to contact the emergency working group and the regulatory authorities to further understand the actual situation of Zhong Dan Company and jointly resolve the risks.

According to the recent disclosure of the Zhong Dan Temporary Creditors' Committee, there are 22 cooperative banks that have business dealings with Zhong Dan guarantee, with a guarantee balance of 3,095.9 million yuan. Among them, Bank of Beijing, Agricultural Bank of China and China Everbright Bank ranked in the top three, accounting for 570 million yuan, 384.8 million yuan and 298 million yuan respectively. This is a financial crisis, credit crisis and trust crisis involving loan banks, China Guarantee Corporation, borrowing enterprises and even Beijing Financial Work Bureau and local banking supervision departments.

According to informed sources of Beijing Financial Work Bureau, Zhong Dan Guarantee's current assets are unknown and are being verified.

Although the guarantee industry is not under the supervision of the CBRC system, the senior management of the CBRC has noticed the potential risks of the guarantee industry, especially the risks of the guarantee industry are closely related to the banking system. Since the development of Sino-Korean guarantee crisis, the banking supervision authorities have never publicly expressed their clear views. A number of creditor companies told reporters that the Financial Work Bureau has no actual jurisdiction over commercial banks. Now Beijing Banking Regulatory Bureau and China Banking Regulatory Commission should take active measures. It is reported that Beijing Financial Work Bureau is coordinating with Beijing Banking Regulatory Bureau to explore relevant solutions. Relevant senior leaders of CBRC have been paying close attention to the guarantee crisis.