Shengjing Bank Injects Capital To Save Evergrande, Stealing Over 400 Billion Yuan From Chinese So Far

In 2016 and 2019, Evergrande Group bought the shares of Shengjing Bank twice, holding 17.28% and 36.40% of its shares respectively, intending to control the Bank. In 2021, Evergrande reduced shares and the shareholding ratio drop to 14.57%. Shengjing Financial Holdings, a subsidiary of Shenyang State-owned Assets, became the largest shareholder.

Since Evergrande officially entered Shengjing Bank in 2019, the Bank’s real estate loans have accelerated. At the end of the year, its loan balance was 35.28 billion, increased of about 6.3 billion. At the end of 2020, this figure soared to 70.05 billion, which is nearly twice the direct growth of real estate loans compared to the previous growth. The balance of non-performing real estate loans has risen from 83 million at the end of 2018 to 1.422 billion at the end of 2020, an increase of more than 16 times in just two years. According to Miles Guo in his live broadcast on August 17, Evergrande took at least 400 billion Yuan from Shengjing Bank, which can be proved and confirmed from the bank’s various internal or external balance sheets.

In addition, according to its credit report by China Lianhe Credit Rating Co., Ltd. in 2021, the scale of its anonymous customer risk exposure is as high as 100 billion, which may constitute the biggest threat to Shengjing Bank’s asset quality. At the end of 2020, the Bank’s “off-balance sheet” assets suddenly dropped to 143.831 billion Yuan, a decrease of 85.827 billion compared with the end of 2018. These funds are likely to be transferred out through transactions with Evergrande and its affiliates.