Subsequently, industry analysts pointed out that china steel group's 10 billion loan interest arrears were a gradual process and not a one-off outbreak. The total amount has not yet been verified, but the rumour is not empty. It has also been reported that, as at the end of july, china china steel group had outstanding loans in the amount of 690 million yuan。
The fact is that the china steel group is operating in the country with a 690 million yuan overdue, and other banks are constantly renewing. The main focus is on cross-section, light and middle。
The china steel group is essentially a national steel trading enterprise. The current severe downturn in steel trading is already an industry-wide problem. Shanghai is the most exposed area for steel trading enterprises. Since 2012, there has been a dramatic increase in the number of cases brought by banks against steel traders to recover loans. According to media reports, in april 2013, 209 bank cases against steel traders were opened in shanghai within a month; in august 2013, as many as 302 steel trade financial disputes were held in shanghai within a month. Since 2013, cases against steel traders have been heard almost weekly in shanghai, with many of the earthquake-earned steel market owners having lost their assets. Most typically, in february this year, the listed companies announced that, as a result of the entry into force of the civil award in the case of a dispute over a financial borrowing contract, such as the shanghai branch of the bank of mansung v. The company's effective control over shao jia, shaw's $466 million interest in the shanghai day (the largest shareholder of new japan's hesitating power) had been seized for a period of two years, and that the 80 million shares held by the shanghai new day had also been judicially frozen. The xiao jia is known in the industry as "the king of steel trade"。
In this regard, the author has written that the national chain reaction of the shanghai steel trading enterprise bank (sitcb) to bad debts is to be prevented and spread throughout the national steel industry. Unfortunately, the tens of billion loan arrears of the central steel group suggest that this concern is not filtered. Blind expansion is one of the reasons why steel trading enterprises are at risk today. The china steel group has embarked on a mad expansion of its productive capacity after the “4 trillions” sacrificed in response to the financial crisis. At that time, there was frequent overlap between the sino-steal group subsidiaries. Overseas expansion has reached a crazier stage, with nearly 10 companies being invested in africa alone, mainly in iron ore and chrome, and 1. 3 billion australian dollars in 2008, the first hostile overseas acquisition by chinese enterprises. However, the value of this investment was subsequently significantly reduced due to the subsequent fall in iron ore prices. The large losses incurred by the china steel group resulted in the closure of a joint venture between china steel group and the australian power corporation, resulting in substantial losses. In-country china steel group, when working with private steel companies such as shanxi, the financial management was out of control, resulting in an internal black hole of over $4 billion。
Blind expansion has serious consequences for the deterioration of balance sheets. Public data show that at the end of 2013, china steel group assets totalled $111. 1 billion, with a total liability of $103. 3 billion and a debt rate of 93. 87 per cent; the owner's interest was only $6. 75 billion, with an undistributed profit of $10,993 million and an operating profit loss of $1,595 million. A little common sense bank, a little balance sheet, would not throw a loan into the fire. The minimum requirement for bank loans to the asset-liability ratio was 70 per cent, while the chinese steel group was nearly 24 percentage points higher. If there are future problems with the steel group's $18. 7 billion loan, the banks themselves have a difficult responsibility to evade。
The large-scale sponsorship of subsidiary companies by the china steel group is also one of the risks associated with the loan. The guarantees provided by the china steel group to the outside world were substantial and, as at the end of july, they were close to 6 billion, mainly for the sub-company, 80 per cent of which were for the chinese steel shares. When reviewing the terms of the loan, the bank is one of the key elements and conditions of the review in respect of contingent liabilities, such as guarantees, of the subject of the loan. The china steel group is so heavily guaranteed that bank audits and clearances are carried out without knowing how。
Most lending banks to the china steel group may act as conglomerates, and the state grants loans to its credit and guarantees with impunity. However, after the current exposure of the central steel group operations, the state has not intervened, coordinated or funded. The message is that the central steel group digests and solves its own problems. This is the right approach and choice。
It was to be hoped that the chinese steel conglomerate would go bankrupt and that the state should not intervene and rescue. The state of qing’s dependence on the country’s big tree must be changed, and qing’s success in running it must be summed up, and the bad habit of doing bad business to the country’s financial protection must be eradicated. To be able to grow up quickly and swim in the sea of a market economy, at risk or even drown, it is responsible. It is hoped that it will start with the china steel group, which will make onpe truly the real firm that dares to take market risks on its own。
Given the current severe overcapacity of the steel industry, it is difficult, or long-term, to overcome the difficulties of resource-related chinese steel conglomerates, which are dominated by three main sectors: resource development, trade logistics, engineering and technology. In this business cycle, steel and steel trading enterprises are less likely to emerge from their plight in the short term, with the outbreak of large numbers of non-performing loans. Shanghai steel and china steel enterprises may be only the tip of the iceberg. With the outbreak of china steel group non-performing loans, care must be taken to guard against the butterfly effects and chain reactions that triggered the outbreak of non-performing loans in the national steel industry and steel trading enterprises。
Regulatory authorities, especially commercial banks, must be well prepared to begin from now on to check the quality of loans in the bottom steel system. Queuing loans by classification allows the risk to develop in a controlled and controlled manner, minimizing the impact on the economy as a whole. At the same time, for businesses that operate legally and pay their normal interest, the maturity loan can be extended as long as possible, with a period of transition and greater tolerance. To prevent a single stick from killing the enterprise and eventually killing it。
A senior financial worker who fought on the financial front for more than 20 years. The management of commercial banks is accompanied by a strong interest in financial research, as well as persistent economic and financial newspaper articles。
Responsible editor: zhang dei
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