According to The Beijing News, the Dalian Shide Group, a Chinese private enterprise whose chairman is Xu Ming, is reportedly being investigated for economic problems. It has used up most of its stock ownership in banks as collateral for loans and has borrowed more than 6 billion yuan in funds. Meanwhile, within this coming month, the company has over 800 million yuan in payments to make on its loans; the monthly interest rates run as high as 4.5%. It is reported that the company has started preparations in anticipation of filing for bankruptcy.
Xu Ming established Shide in Dalian in 1992. In 2005, Forbes ranked Xu as China’s eighth richest man. It has been reported that Xu has close ties with Bo Xilai, the former Party Secretary of Chongqing City, Sichuan and has provided him with financial support. On March 15, 2012, the CCP leadership removed Bo from his position and he is currently under investigation. Shortly thereafter, Shide lost contact with Xu Ming, whom many believe is also under investigation or arrest in connection with Bo.
Source: The Beijing News, April 19, 2012