The repayment turmoil at Zhejiang Financial Assets Exchange (now renamed Zhejiang Zhejin Asset Operation Co., Ltd., referred to as "Zhejin Center") continues to escalate.
On the evening of December 16, two A-share listed companies under Xiangyuan Holdings Group Co., Ltd. (referred to as "Xiangyuan Holdings")—Zhejiang Sunriver Culture Tourism Co.,Ltd. (600576.SH) and Anhui Gourgen Traffic Construction Co.,Ltd. (603815.SH)—disclosed that the shares held by their controlling shareholder, Xiangyuan Holdings, and its actual controller, Yu Faxiang, had been judicially frozen or placed under sequential freezing.
Although both companies stated in their announcements that the freezing of shares held by the controlling shareholder would not immediately impact corporate control, equity structure, or governance, the high proportion of frozen and sequentially frozen shares held by the actual controller, controlling shareholder, and their concerted parties could pose risks to the stability of corporate control if judicial disposal procedures follow.
Since November 28, multiple financial asset income rights products guaranteed by Zhejiang tycoon Yu Faxiang and Xiangyuan Holdings on the Zhejin Center platform have failed to meet repayment deadlines. According to incomplete statistics, the repayment scale amounts to billions of yuan.
**Yu Faxiang’s Shares Frozen** As a core party involved in the Zhejin Center repayment crisis, Yu Faxiang’s direct and indirect holdings in listed companies have now been judicially frozen.
Zhejiang Sunriver Culture Tourism Co.,Ltd. disclosed that its controlling shareholder, Xiangyuan Tourism Development Co., Ltd. (referred to as "Xiangyuan Lvkai"), had approximately 390 million shares (all restricted tradable shares) frozen, accounting for 99.06% of its holdings and 37.03% of the company’s total shares. Additionally, 398 million shares were placed under sequential freezing, representing 100.90% of its holdings and 37.71% of the company’s total shares. Xiangyuan Lvkai is a wholly-owned subsidiary of Xiangyuan Holdings.
Furthermore, Anhui Xiangyuan Culture Development Co., Ltd. (referred to as "Anhui Xiangyuan"), a concerted party of Xiangyuan Lvkai, had 207 million pledged shares (all unrestricted tradable shares) frozen, accounting for 95.63% of its holdings and 19.66% of the company’s total shares. Another 2.47 million shares were judicially frozen (1.14% of its holdings, 0.23% of total shares), while 64.28 million shares were placed under sequential freezing (29.65% of its holdings, 6.10% of total shares).
As of the announcement date, the actual controller, controlling shareholder Xiangyuan Lvkai, and its concerted party Anhui Xiangyuan collectively had 612 million shares frozen (100% of their combined holdings, 58.08% of total shares), 462 million shares under sequential freezing (75.43% of holdings, 43.81% of total shares), and 207 million pledged shares frozen (33.86% of holdings, 19.66% of total shares).
Anhui Gourgen Traffic Construction Co.,Ltd. disclosed that Xiangyuan Holdings holds 274 million shares (44.32% of total shares), of which 452 million shares were frozen (7.31% of total shares), 274 million pledged shares were frozen (4.43% of total shares), and 202 million shares were judicially marked (32.58% of total shares). Additionally, 274 million shares were placed under sequential freezing (44.32% of total shares). Actual controller Yu Faxiang holds 157 million shares, all of which were frozen (2.54% of total shares).
Both companies attributed the freezes to: 1. Pre-litigation preservation procedures related to financial loan guarantee disputes under Shanghai Financial Court. 2. Judicial freezing and sequential freezing by Shaoxing Public Security Bureau due to debt risks linked to Xiangyuan Holdings and its actual controller’s associated platform. 3. Sequential freezing by Yuecheng District People’s Court in Shaoxing, Zhejiang, related to pre-litigation preservation procedures for financial loan guarantee disputes involving Anhui Xiangyuan and a financial institution.
Public records show Yu Faxiang, born in 1971 in Shengzhou, Zhejiang, is Chairman of Xiangyuan Holdings, which owns three listed companies: HAICHANG HLDG (02255.HK), Anhui Gourgen Traffic Construction Co.,Ltd., and Zhejiang Sunriver Culture Tourism Co.,Ltd. On October 28, 2025, Hurun Report ranked Yu Faxiang 465th on its Rich List with a net worth of 14.5 billion yuan.
**Workgroup Dispatched to Xiangyuan Holdings** On December 12, a Shaoxing City support workgroup was deployed to Xiangyuan Holdings to assess its assets and liabilities, ensuring the company fulfills debt obligations while maintaining normal operations.
On December 15, local media published a Q&A addressing debt risks linked to Xiangyuan Holdings and Zhejin Center. It stated that after the debt crisis emerged in early December 2025, authorities at provincial and municipal levels formed task forces to investigate and handle the situation.
The Q&A clarified that Xiangyuan Holdings proactively sought government assistance to resolve its debt crisis. Established in 2002, the company operates in real estate and cultural tourism, with three listed subsidiaries. The workgroup aims to stabilize operations while evaluating assets for targeted support and risk mitigation.
Regarding Zhejin Center’s online services, the Q&A noted that while certain functions like fund transfers are suspended during investigations, basic services remain operational, with necessary features to resume pending further review.
At the time of reporting, Anhui Gourgen Traffic Construction Co.,Ltd.’s stock plunged over 8%, while Zhejiang Sunriver Culture Tourism Co.,Ltd. fell nearly 2%. Both companies stated their actual controller and controlling shareholder are actively resolving the issues.
Comments