Xie Bing was a model businesswoman until she was charged with illegal, high-interest borrowing from the public.
By Li Weiao 7 November 2008
Xie Bing is an attractive, philanthropic entrepreneur who rose from a dye company factory floor to become a national legislator and a leading businesswoman in Sichuan Province.
Xie’s Hantang Corp. is a successful operator of supermarkets, consumer product suppliers and tourist facilities. In addition to running the business, she spent six years representing the city of Dazhou as a member of the National People’s Congress.
But this 38-year-old, rising star of the Sichuan business community recently crashed to earth on charges of financial corruption. Communist Party officials in Dazhou told Caijing that Xie was arrested for allegedly engaging in illegal fund-raising – borrowing from individuals instead of banks based on promises of high interest payments.
On October 28, the National People’s Congress Standing Committee stripped Xie of her legislative position for “alleged involvement in criminal activity.” Authorities had arrested her husband, another relative and Hantang’s legal representative two months earlier.
Their alleged crime is known as “illegally absorbing public funding,” which violates credit lending laws. It’s against the law for an individual to accept loans totaling more than 200,000 yuan from the general public, or accept loans from more than 30 households, or lose more than 100,000 yuan collected from small investors. A convicted criminal can get up to 10 years in prison and a 500,000 yuan fine.
The scale of Xie’s alleged fund-raising is unclear. Local officials have declined to release details, saying only that “the case is still under investigation, and no conclusions have been made.”
But Caijing learned that Xie and her company sought cash from the public to finance several large construction projects. Small investors were allegedly lured with promises of high interest.
The fund-raising apparently stems from Hantang’s August 2004 acquisition of exclusive rights for a project development in the Tieshan national forest, about 20 miles from Dazhou, and the renovation of a local hotel.
According to a local official who refused to be named, investors were promised various interest rates. But in at least one case, the official said, a 20,000 yuan loan could be accompanied by a promise for 1,000 yuan a month in interest.
Xie’s climb to success apparently helped her win the confidence of small investors.
After studying English in college, Xie was assigned to work in a fabric dying factory. After the company went bankrupt, she launched her own business, but struggled after setbacks including a devastating fire.
In November 1997, she turned a corner by landing a job as a local sales agent for several Chinese and international products, including Great Wall Wine, Kraft Foods, and Kongfu Banquet Wine. Xie then established her Sichuan Hantang Industrial (Group) and quickly expanded.
Xie invested in local convenience stores, building a chain that today includes more than 20 stores. Xie also started subsidiaries to handle sales, food manufacturing, hotel catering and investment.
Hantang rose to a list of Sichuan’s top 500 companies, and was ranked among the province’s 200 leading consumer product companies.
In 2006, Xie was honored for “extraordinary achievements in China’s philanthropy,” becoming the first person from Dazhou to earn the award. Shortly before her arrest, Xie was depicted by local media as a generous philanthropist who hired laid-off workers, helped children from poor families go to college, and contributed to disaster relief after a May 12 earthquake in Sichuan.
Xie was elected to the National People’s Congress at age 32 in 2003, becoming one of five representatives for Dazhou’s 6 million residents.
The fund-raising activity of Xie and her company were public knowledge in Dazhou. As recently as August 26, the city police accused Hantang of illegal borrowing following a local party decision to pursue the case.
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Sichuan Star Falls on Finance Charge
Xie Bing was a model businesswoman until she was charged with illegal, high-interest borrowing from the public.
By Li Weiao
7 November 2008
Xie Bing is an attractive, philanthropic entrepreneur who rose from a dye company factory floor to become a national legislator and a leading businesswoman in Sichuan Province.
Xie’s Hantang Corp. is a successful operator of supermarkets, consumer product suppliers and tourist facilities. In addition to running the business, she spent six years representing the city of Dazhou as a member of the National People’s Congress.
But this 38-year-old, rising star of the Sichuan business community recently crashed to earth on charges of financial corruption. Communist Party officials in Dazhou told Caijing that Xie was arrested for allegedly engaging in illegal fund-raising – borrowing from individuals instead of banks based on promises of high interest payments.
On October 28, the National People’s Congress Standing Committee stripped Xie of her legislative position for “alleged involvement in criminal activity.” Authorities had arrested her husband, another relative and Hantang’s legal representative two months earlier.
Their alleged crime is known as “illegally absorbing public funding,” which violates credit lending laws. It’s against the law for an individual to accept loans totaling more than 200,000 yuan from the general public, or accept loans from more than 30 households, or lose more than 100,000 yuan collected from small investors. A convicted criminal can get up to 10 years in prison and a 500,000 yuan fine.
The scale of Xie’s alleged fund-raising is unclear. Local officials have declined to release details, saying only that “the case is still under investigation, and no conclusions have been made.”
But Caijing learned that Xie and her company sought cash from the public to finance several large construction projects. Small investors were allegedly lured with promises of high interest.
The fund-raising apparently stems from Hantang’s August 2004 acquisition of exclusive rights for a project development in the Tieshan national forest, about 20 miles from Dazhou, and the renovation of a local hotel.
According to a local official who refused to be named, investors were promised various interest rates. But in at least one case, the official said, a 20,000 yuan loan could be accompanied by a promise for 1,000 yuan a month in interest.
Xie’s climb to success apparently helped her win the confidence of small investors.
After studying English in college, Xie was assigned to work in a fabric dying factory. After the company went bankrupt, she launched her own business, but struggled after setbacks including a devastating fire.
In November 1997, she turned a corner by landing a job as a local sales agent for several Chinese and international products, including Great Wall Wine, Kraft Foods, and Kongfu Banquet Wine. Xie then established her Sichuan Hantang Industrial (Group) and quickly expanded.
Xie invested in local convenience stores, building a chain that today includes more than 20 stores. Xie also started subsidiaries to handle sales, food manufacturing, hotel catering and investment.
Hantang rose to a list of Sichuan’s top 500 companies, and was ranked among the province’s 200 leading consumer product companies.
In 2006, Xie was honored for “extraordinary achievements in China’s philanthropy,” becoming the first person from Dazhou to earn the award. Shortly before her arrest, Xie was depicted by local media as a generous philanthropist who hired laid-off workers, helped children from poor families go to college, and contributed to disaster relief after a May 12 earthquake in Sichuan.
Xie was elected to the National People’s Congress at age 32 in 2003, becoming one of five representatives for Dazhou’s 6 million residents.
The fund-raising activity of Xie and her company were public knowledge in Dazhou. As recently as August 26, the city police accused Hantang of illegal borrowing following a local party decision to pursue the case.
Thank you, thats very interesting information. I need to share with my friends.
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