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Secret Asset Transfers, Followed by Bankruptcy and Move to Canada

On October 22, 2011, China Business Journal published a report on an investigation into secret transfers of assets to Canada for entrepreneur emigration.

While the whole nation has been discussing whether to rescue the debt-ridden small and medium enterprises in Wenzhou, Zhejiang Province, business owners from Wenzhou and Yiwu in Zhejiang have been getting ready to emigrate abroad. Some business owners obtained bank loans using their businesses as collateral and transferred the borrowed money abroad for entrepreneur emigration to Canada; other entrepreneurs transferred their assets overseas through different channels long ago, just waiting for the right time to declare bankruptcy. Many Yiwu entrepreneurs have left businesses behind in China, which remain only as empty shells.

Source: China Business Journal, October 22 2011