Occidentalism
Duc, sequere, aut de via decede!

China Fined Mitsubishi Tokyo UFJ Bank roughly 24 Million Dollars

July 9th, 2006 . by Darin

As reported by the Mainichi Shimbun:

三菱東京UFJ:中国が行政処分 28億円支払う

On the 8th it became clear that the Chinese financial authorities took administrative measures on the Mitsubishi Tokyo UFJ Bank Shenzhen branch office for loaning an excessive amount of money to a local company, and was fined roughly 2,800,000,000 Yen (1 USD = 114.065 JPY : 24,547,407.18 USD).
In 2003 the Shenzhen office lent roughly 14,000,000,000 Yen (122,737,035.90 USD) to a large Chinese pharmaceutical corporation, however the Chinese financial authorities determined that this was an “excessive amount” compared to the scale of the corporation and took measures on the branch office. Mitsubishi Tokyo UFJ Bank said “we cannot make a comment in relation to the investigation” when contacted.

As reported by the Asahi Shimbun:

三菱UFJ、中国当局から罰金約28億円

It has been learned that Mitsubishi Tokyo UFJ Bank was fined 2,800,000,000 Yen (24,547,407.18 USD) by the Chinese authorities for “unfair business dealings” at the end of last year in relations to loaning money to a Chinese corporation. The bank has already paid the fine, however it says it “cannot comment as the Chinese office has not made this event public”.
According to sources close to the situation, in 2003 the UFJ Bank (now Mitsubishi Tokyo UFJ Bank) Shenzhen branch office lent 1,000,000,000 Yuan (1 USD = 7.98550 CNY : 125,226,973.89 USD) to a company related to a large Chinese pharmaceutical company in the form of stocks. The Chinese authorities determined that this was “unjust” as the amount of financing was too much for the scale of the corporation.

As reported by the Yomiuri Shimbun:

三菱東京UFJ銀、行政処分で中国に28億円支払う

On the 8th it was learned that the Shenzhen (China – Guǎngdōng Province) was fined approximately 2,800,000,000 Yen (24,547,407.18 USD) by the Chinese financial authorities for excessive lending to a local corporation.
The branch office in it’s previous form, UFJ Bank, act of loaning 14,000,000,000 Yen (122,737,035.90 USD) to a related company of a large Chinese pharmaceutical company, 三九企業集団 in 2003 was labeled “too great for the scale of the corporation” by the Chinese authorities.
Mitsubishi Tokyo UFJ Bank said “we can not comment what so ever as it is in relation to the investigation”.

Shenzhen (深圳) on wikipedia


4 Responses to “China Fined Mitsubishi Tokyo UFJ Bank roughly 24 Million Dollars”

  1. comment number 1 by: Matt

    This is what I love! Being able to look at my blog and be surprised.

    I have never heard of the crime of “excessive lending” before. I wonder what this means for Japanese business in China.

  2. comment number 2 by: randomcow

    I don’t see what the problem is. You do business in another country, you run your business by the rules of that country. There’s nothing in those articles which says that Mitsubishi Tokyo UFJ Bank wasn’t aware of the rule, nor that they plan to fight it. Were there any warnings issued previously?

    I’m not sure, but I wouldn’t be surprised if most countries have a similar rule. Excessive lending is related to bubble economies, and most countries want to avoid that these days. Admittedly the companies doing the borrowing should learn to “just say no,” but since when have corporations been trustworthy?

    RC

    PS Darin, sorry to shit on your articles. Keep writing.

  3. comment number 3 by: Darin

    PS Darin, sorry to shit on your articles. Keep writing.

    No problem for me, all I did was translate some articles that weren’t available in English about a recent event. People can think of that however they want.

  4. comment number 4 by: eli

    I don’t understand how Mitsubishi can be singled out in this way, aside from xenophobia. It’s well known that Chinese banks are saddled with all kinds of bad loans that were forced on them by Chinese government officials indulging in cronyism, can’t be redeemed, and also can’t be written off. Much of China’s growth depends on these rotten loans.