The Case Analysis Of SUNNY LOANTOP About Entrusted Loans

According to the survey of the stock market in Shanghai and Shenzhen, there are52Listing Corporations involved in entrust loan business in total. The total loanamount has exceeded1640billion Yuan. According to the107announcement that hasreported about entrust loan, the loan interest rates generally high. The lowest annualinterest rate is12%, and the highest has reached21.6%.The phenomenon that the Listing Corporations involved in entrust loan hasappeared frequently. On the one hand, they are allured by the high profits. On theother hand, it is owing to the difficulty about the small and medium-sized enterpriseequity trading. They need to make up for the shortfall in funds by entrust loan. Thesetwo reasons lead to that some Listing Corporations put their main business aside forthe immediate interests, and regard the profit that made by the entrusted loan as themain source of profits.SUNNY LOANTOP researched in this paper is the most typical ListingCorporation. It has more than60billion Yuan entrusted loans balance currently. Thispaper analyses the problem that the SUNNY LOANTOP exists through empiricalanalysis of data in detail. It also reflects some common problems in this aspect of theListing Corporations. This phenomenon not only has an adverse affect on the listingCorporation itself, but also increases the social cost of financing, and assaults thenational macroeconomic regulation and control policy.The structure of this paper consists of four parts: the first part is the introduction.It mainly introduces the research background, the research significance, researchmethods, the innovation and the structure of the article; the second part states the caseof SUNNY LOANTOP. Firstly, it introduces the property and business ofSUNNY LOANTOP, and then introduces the case from the development, entrustedloans business loans overdue, extension; the third part is putting forward four hiddenproblem, respectively, they are deviating from the main business, the company assetimpairment, the overdue and rollover risk of the company and the failure of theinternal supervision in the company; the fourth part states that they are the commonproblems reflected by the problems existed in this case and put forward some proposed solutions in detail and in depth from the internal, external, microscopic,macroscopic level.