ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

The fall of the Shanxi Gang

Disgraced top official Ling Jihua's childhood home still stands in a sleepy village in Shanxi Province.

Shanxi Haixin Iron and Steel Group was once the biggest privately owned steelmaker in China's central province of Shanxi. Its plant in the city of Yuncheng is now deserted.

     In its heyday, a never-ending stream of large trucks, loaded with coal for fuel, passed through the facility's gate. But Shanxi Haixin collapsed in November 2014, leaving 10 billion yuan ($1.6 billion at current rates) in debt. Problems in China's shadow banking system -- a web of largely unregulated financial institutions -- had come to light the previous year. Haixin was apparently tangled in that web.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more