Oct 29, 2018 03:50 AM

In Depth: The Multibillion-Dollar Black Hole of a State Fuel Trader

Xiong Shaohui. Photo: Caixin
Xiong Shaohui. Photo: Caixin

* Guangdong Zhenrong defaulted on 21.5 billion yuan of loans to more than 20 banks as of April 2017, with billions of yuan disappearing from its books

* Auditors said the company has arranged complicated trade deals among affiliated companies to beef up revenue and obtain credit

In just four years, Chairman Xiong Shaohui saw his ambition come true as Guangdong Zhenrong Energy, a state-backed fuel trader, expanded annual revenue nine-fold to become one of China’s largest players in the global energy market. But it took even less time to prove that the colossus was just a castle built on sand.

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