[Epoch Times, June 4, 2022]A few days ago, Chen Rugui, the former mayor of Shenzhen City of the Communist Party of China, was sacked as the deputy director of the Standing Committee of the Guangdong Provincial People’s Congress. According to reports, there are three main reasons for Chen Rugui’s sack: Shenzhen Real Estate Management, Evergrande’s illegal use of leverage, and illegal lending by the Shenzhen banking system.
At the beginning of April, a netizen published 102 pieces of information on the illegal real estate speculation activities organized by the founder of Shenfangli Information Technology (Shenzhen) Co., Ltd. Li Xuefeng (net name “Shenfangli”) on Weibo. The incident triggered a joint investigation by seven departments including Shenzhen Housing Construction, Public Security, and China Banking and Insurance Regulatory Commission.
According to the report of “Hong Kong 01” on June 3, after investigation, the case of Shenfang was suspected of crowdfunding and holding of real estate, illegally extracting credit funds to enter the real estate market, false advertising, concealing income to evade taxes, forging official documents of state organs, Illegal fundraising, etc. In addition, some intermediaries are suspected of facilitating the illegal real estate speculation of Shenzhen Real Estate.
It was learned from people in the financial system that under the government responsibility system, Chen Rugui is mainly responsible for the indulgence of gangs in the real estate speculative model. At least 300 billion yuan (RMB, the same below).
The second is that Evergrande used a lot of funds to expand the cultural tourism, health sector, and automotive sectors, while Chen Rugui was deeply involved in Evergrande’s urban renewal project in Shenzhen behind the scenes. In 2017, the headquarters of Evergrande Group, which Chen Rugui has been supervising since he was the director of the Guangzhou Municipal Construction Committee in 2003, moved from Guangzhou to Shenzhen. Evergrande’s debt was only 500 billion yuan, and the cash on the account was 300 billion yuan, but now the debt on the balance sheet is as high as 2 trillions. In 2016, Evergrande had only 20 projects in Shenzhen. By 2021, there will be 61 old renovation projects in Shenzhen alone. The 40 newly approved old renovation projects worth trillions of yuan by Evergrande will require the mayor at the time. Chen Rugui nodded.
According to sources, as the mayor of Evergrande’s headquarters, Chen Rugui’s regulatory responsibility for this is because the old reform projects for Evergrande are used to finance and expand leverage from financial institutions.
The third is the Shenzhen banking system. After Tian Huiyu and Wang Ye, former presidents of China Construction Bank Shenzhen Branch, and Wu Deli, former president of China Development Bank’s Guangdong Branch, were sacked, Chen Rugui was held accountable as the main person responsible for the expansion of Shenzhen’s financial leverage bubble. the natural result.
The news also said that Chen Rugui, who is well versed in the laws of real estate, indulges corruption, buys people’s hearts, and has his own small circle and sphere of influence. Whether it is Evergrande or Shenzhen Real Estate Management, it shows the shortcomings of Shenzhen’s banking system, and it can be done by defrauding bank loans. , and there are many officials in Shenzhen who have multiple properties and even have strong financing and real estate speculative strength, and vested interest groups should not be underestimated.
On April 22 this year, Tian Huiyu, president of China Merchants Bank, was investigated. Several senior executives of the Shenzhen branch of China Construction Bank, which Tian Huiyu once ruled, have also been sacked. On April 12, 15 and 22, the former president of CCB Shenzhen Branch Wang Ye, the former vice president Zhang Xueqing, and the former branch risk director Han Fenglin successively sacked.
On June 2, the article “Tuanjiehu Reference” under the “Beijing Youth Daily” stated that the corruption of Jiang Zunyu, Li Huanan, the former secretary of the Political and Legal Committee of Shenzhen, and Lv Ruifeng, the former executive vice mayor of Shenzhen, who have been sacked, are deeply related to the real estate industry. .
The executives of at least ten major banks in Shenzhen have been investigated, and almost all of the announced reasons for their dismissal include the illegal inflow of credit funds into the real estate industry. These people are trying to raise the house price in spite of the limelight, simply because this is a big cake and involves the interests of too many people.
Chen Rugui, 60 years old, has successively served as member of the Standing Committee of the Guangzhou Municipal Party Committee, Secretary General, Deputy Mayor, Deputy Secretary of the Municipal Party Committee, Secretary of the Political and Legal Committee, Secretary of the Zhongshan Municipal Party Committee, and Director of the Standing Committee of the Municipal People’s Congress. Mayor, mayor and other positions. In April 2021, he was appointed as the deputy director of the Standing Committee of the Guangdong Provincial People’s Congress. He will be retired on June 1 this year.
Responsible editor: Xu Menger