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.

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