Zeng Baobao, the niece of Zeng Qinghong, owns Fantasia Holdings. Zeng Qinghong is a retired Chinese Communist Party (CCP) top official. He is former CCP head Jiang Zemin’s right-hand man, the Vice President of China, and a CCP Politburo Standing Committee member. He is still believed to have considerable political influence in China. Many media have reported him as heading a CCP faction that is against Xi Jinping.
Zeng Baobao established Fantasia Holdings in 1996. The company went IPO in Hong Kong in 2009. Its main business is real estate development.
Recently, Citibank and Credit Suisse gave a zero loan value to Fantasia’s notes, meaning that their private wealth management customers can no longer use Fantasia’s notes as collateral for loans. On September 14, S&P Global Ratings announced a negative outlook on the company and affirmed a “B” rating, as the company’s large foreign debt maturity will weigh on its financials.
Many real estate companies in China are facing cash flow problems. However, the fact that Fantasia Holdings is facing trouble may also carry a political message. It may mean that Zeng Qinghong is likely to be in bad shape. He is not able to save his family’s company.
1. Liberty Times, September 7, 2021
2. Sina, September 15, 2021