China Names and Shames Tech Tycoon With Debt Blacklist
- 6 years ago
China Names and Shames Tech Tycoon With Debt Blacklist
As China’s economy matures, officials are concerned by the mountains of debt amassed
by local governments, big state-run companies and high-flying tycoons like Mr. Jia.
Pressure from the government has already curbed deal making by the country’s “gray rhino” companies, a term used by the official newspaper of the Communist Party to describe the businesses as large
and visible problems that are ignored until they become a threat.
The publicly searchable database, maintained by China’s top court, is part of a growing effort
by officials to rein in irresponsible borrowing — including by naming and shaming.
Mr. Jia was added to the blacklist this week over unpaid debt totaling $72 million, including interest
and fees, that he owed to Ping An Securities, a brokerage.
A court in Beijing recently asked an internet security company to tag irresponsible borrowers’ telephone numbers so
that when someone called, a message would appear onscreen saying that the respondent owed money.
LeEco’s ambitious, debt-driven expansion began running aground last year, causing angry creditors
to stage sit-ins at the company’s Beijing office and leading courts to take action.
As China’s economy matures, officials are concerned by the mountains of debt amassed
by local governments, big state-run companies and high-flying tycoons like Mr. Jia.
Pressure from the government has already curbed deal making by the country’s “gray rhino” companies, a term used by the official newspaper of the Communist Party to describe the businesses as large
and visible problems that are ignored until they become a threat.
The publicly searchable database, maintained by China’s top court, is part of a growing effort
by officials to rein in irresponsible borrowing — including by naming and shaming.
Mr. Jia was added to the blacklist this week over unpaid debt totaling $72 million, including interest
and fees, that he owed to Ping An Securities, a brokerage.
A court in Beijing recently asked an internet security company to tag irresponsible borrowers’ telephone numbers so
that when someone called, a message would appear onscreen saying that the respondent owed money.
LeEco’s ambitious, debt-driven expansion began running aground last year, causing angry creditors
to stage sit-ins at the company’s Beijing office and leading courts to take action.