On July 6, 2022, the China Banking Regulatory Commission issued the Reply on the Bankruptcy of Xinhua Trust Co., Ltd., agreeing that Xinhua Trust should enter the bankruptcy procedure according to law. Xinhua Trust shall carry out the follow-up work in strict accordance with the requirements of relevant laws and regulations, and report to China Banking Regulatory Commission in time in case of major circumstances.
Related violations:
Li Guilin, the former chairman and legal representative of Xinhua Trust, is mainly responsible for Xinhua Trust's failure to report related party transactions in advance. Mainly responsible for the issue of improper incentives issued by Xinhua Trust. Relevant information shows that Li Guilin was warned and punished by the regulatory authorities.
In addition, the main violations of Hu Xiang, general manager of Xinhua Trust, include: being responsible for the failure of comprehensive risk management of Xinhua Trust; Mainly responsible for the ultra vires approval of Xinhua Trust and the business problems of related parties; Mainly responsible for the huge losses caused by Xinhua Trust's illegal approval on behalf of related party investment.
China Economic Net-Xinhua Trust was fined for failing to report related party transactions in advance.