ECONOMY

Chinese Firm Fakes Pig Trades to Defraud State-Owned Enterprises

Published: Oct. 22, 2026 12:24 p.m. GMT+8

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A private company in southern China’s Guangxi region issued nearly 8.8 billion yuan ($1.3 billion) in invoices through a fictitious pig-trading scheme that caused major losses for local state-owned enterprises (SOEs).

The case, revealed by the State Taxation Administration (STA), highlights a broader tax crackdown on fictitious invoicing, which can be used to inflate corporate revenue and obtain bank loans.

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A Guangxi firm issued ¥8.8 billion ($1.3B) in invoices via fictitious pig trades, defrauding state-owned enterprises.
Circular trading inflated revenue to secure bank loans; funds were diverted, and controller Qin Yingning fled overseas.
Tax authority crackdown highlights losses, including one SOE losing ¥60 million.

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Who’s Who

Guangxi Nanning Xuanpeng Agricultural Development Co. Ltd.: Guangxi Nanning Xuanpeng Agricultural Development Co. Ltd. issued nearly 8.8 billion yuan ($1.3 billion) in fictitious pig-trading invoices from 2023 to 2025, causing major losses for local SOEs. Its controller, Qin Yingning, fled overseas. The scheme involved circular trades and diverted bank loans.

AI generated, for reference only