Minxing Pharma's Boss Goes AWOL After USD320 Million Default Comes to Light
Liao Shumin
/SOURCE : yicai
Minxing Pharma's Boss Goes AWOL After USD320 Million Default Comes to Light

(Yicai Global) July 11 -- The person who controls Minxing Pharmaceutical has gone missing after it emerged that the company has uncollectable accounts receivable totaling CNY2.2 billion (USD320.5 million).

The amount includes CNY240 million (USD35.0 million) of asset management products issued by Central China Securities that cannot be redeemed, according to the 21st Century Business Herald. The securities company's chairman has been reported to the police.

Shares of Central China Securities [SHA:601375] fell 4.8 percent today to end trading at CNY5.79 (84 US cents) each.

Fujian Medical University Union Hospital is said to be the biggest debtor yet the hospital claims it is unaware of the giant amount owed, the report said. Large, state-funded public hospitals are unlikely to default, a financial expert said, which brings into question the authenticity of the financing.

Nine financial firms, including China Fortune International Trust, Guolian Trust, China Industrial International Trust, Huarong International Trust, Shenzhen Huayao Factoring, Hitachi Capital Factoring China are also involved, the report said.

COFCO Trust and Penghua Asset, a unit of Penghua Fund Management, borrowed funds with Minxing Pharmaceutical as the underlying asset to issue collective trust fund and asset management products, public data shows.

Follow Yicai Global on
Keywords: Central China Securities Co.