Fallen Energy Conglomerate CEFC Declared Bankrupt
What’s new: CEFC China Energy Co. Ltd., the fallen energy and financial conglomerate controlled by secretive tycoon Ye Jianming, has been declared bankrupt by a Shanghai court, according to a ruling (link in Chinese) dated March 31 and published Friday on an enterprise bankruptcy information disclosure platform set up by China’s Supreme People’s Court.
In addition to CEFC China, several of its subsidiaries including CEFC Shanghai International Group Ltd. and CEFC Hainan International Holdings Co. Ltd. were also declared bankrupt in the same ruling.
What’s the background: CEFC China is one of the private Chinese conglomerates that spent several years amassing sprawling assets abroad through debt-backed investments. But the company has been under regulatory and financial pressure since founder Ye was placed under investigation on suspicion of economic crimes in 2018.
CEFC Anhui International Holding Co. Ltd., one of CEFC China’s financing arms, began the delisting process in September and was officially delisted in November from the Shenzhen bourse after its stock lost most of its value amid the parent’s corruption scandal and financial woes.
Regulators in November revoked the business licenses of CEFC Shanghai Securities Co. Ltd, citing the brokerage’s unlawful actions including extending financing to parent company CEFC Shanghai International and its affiliates.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Contact reporter Timmy Shen (email@example.com) and editor Joshua Dummer (firstname.lastname@example.org)
- MOST POPULAR