Loan sharking broke out in China 2Loan sharking broke out in China 2

In a deserted restaurant, Yang Boqun – Director of a real estate company said he was looking for a way to repay the 150 million yuan (24.7 million USD) debt he borrowed to build a 5-storey shopping center in Jinhua.

The reason is that when construction costs suddenly skyrocketed, banks refused to lend Yang more.

Yang’s shopping center has almost no tenants.

`I’m a real loan shark, but we do business legally,` Raymond Ting – Chairman and CEO of Credit China said in the Wall Street Journal.

Ting is one of many people doing black credit business in China, in the context of the country’s Government curbing banks’ lending activities.

Loan sharking broke out in China

Raymond Ting – Chairman and CEO of Credit China.

China’s shadow credit industry includes trust companies, pawn shops, informal lenders and microfinance companies.

Ting said people like Yang are his company’s main customers.

Ting said he is just meeting the needs of those who cannot get loans from banks.

Ting is 41 years old and is the son of a real estate company director in Shanghai.

Credit China currently has about 74.1 million yuan of overdue loans, equivalent to 9.1% of total assets.

Recently, when the housing bubble in China began to cool down, Credit China began to move into new fields.

`Demand here is growing very strongly,` Ting commented.

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