Cheers!
Posted on 10/15/2011 7:32:57 AM PDT by TigerLikesRooster
By staff reporter Yu Zhixiang 10.14.2011 18:39
Ordos Property Developer Commits Suicide
Wang Fujin of Zhongfu Real Estate Development Co. took his life and another co-owner of the property development firm Hao Xiaojian is now on the run
(Beijing) – The owner of a property firm in the affluent Inner Mongolian city Ordos reportedly committed suicide after defaulting on private loans from individual lenders.
In late September, Wang Fujin of Zhongfu Real Estate Development Co. took his life and another co-owner of the property development firm Hao Xiaojun is now on the run, China Business News reported on October 13, citing an anonymous source.
Zhongfu, established in 2010, is jointly owned by Wang, Hao and another individual, who is not involved in the debt default, according to the CBN report.
Wang was a local court chief before he retired in 2007, and started his real estate business through raising funds from individuals, including Zhongfu staffers, retired people and Wang's former associates, said CBN.
According to calculations by Zhongfu's creditors, the developer raised a total of 263 million yuan from 2,000 separate individual loans. Zhongfu's operations grounded to a halt after it became insolvent and unable to pay its debt service obligations.
Wang had a good reputation among his friend, but financial pressures continued to weigh on him, a Zhongfu creditor told the CBN.
With monthly interest rate as high as 3 percent, Wang was obligated to pay 8 million yuan per month to pay interest alone, the National Business Daily reported on October 14, adding that Wang hung himself in a toilet September 24.
(Excerpt) Read more at english.caixin.cn ...
P!
Cheers!
He sure is lucky he did this in China and not the US, cause in the US suicide is against the law, unless of course you get a member of the medical profession to help you.
Interesting. When you put the debt rope around your neck, bad things can happen...or in the words of my Uncle Cliff, “It’s a great life, if you don’t weaken.”
Someone needs to post pictures of the ghost city. Really weird.
Ordos: China’s Modern Ghost Town
It took five years to build this ghost town with funds created by a $585 billion stimulus package meant to bolster China’s economy despite its painful recession. The Inner Mongolian city was meant to accommodate some one million residents and yet it remains empty.
Filled with office towers, administrative centers, government buildings, museums, theaters, sports fields and acres of subdivisions bursting with residential space, there remains only one small problem. No one lives there! Ordos’s low population is oddly matched by its high income, which is due to its nearby coal mines and other rich natural resources which include: textile (wool), petrochemicals, electricity generation and production of building materials. As far as the rest of China is concerned, Ordos retains the second highest per capita income, after Shanghai. Construction management companies insist that all units have been sold (purchased by investors), but for whatever reason, no one is moving in!
If Ordos ever takes off the way it was originally planned, there is little doubt that the result will be a great return on the original investment.
One can only surmise that old saying about “build it and they will come” doesn’t always work. Cities are more successful when their expansion correlates with the needs of its population.
yitbos
I have the sneaking suspicion that you cannot really believe anything that you hear about the Chinese economy. It may very well be not much more than a house of cards.
yitbos
Yep. Welcome to the real world, outside the matrix.
Maybe we could arrange for the “occupy” people to move there and squat.
ping
Really interesting. Really really interesting. Absolutely surreal.
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