CASE STUDIES
Inflated Assets
Grapevine assisted a private equity investor map out a Chinese conglomerate’s diversified assets and capital situation.
Like many privately run Chinese companies, this conglomerate built up its empire by sucking up funds from both local government’s policies-driven subsidies and foreign investment from institutions with superficial knowledge about the business environment in China. The company told fraudulent stories about its market dominance, high-tech ambitions, and overseas IPO plans.
Our research concluded that more than 50% of the conglomerate’s assets were fabricated, and its business was not liquid and lucrative enough to repay its loans.