Cash-strapped Guangzhou International Trust and Investment Corp (Gzitic) appears unable to resolve its financial woes as two H-share companies - Luoyang Glass and Guangzhou Shipyard - rush to take its properties as collateral for money placed with the firm.
Luoyang Glass financial controller Ren Puxian plans to go to Guangzhou soon, with the aim of meeting Gzitic's general manager Li Yinglin.
Mr Ren said the board had agreed to take Gzitic's properties in Hong Kong and Macau, which were said to worth about 200 million yuan (about HK$186.14 million), as collateral for its outstanding deposits of 145 million yuan.
He said the move was to play safe, as Beijing had cut off the links of international trust and investment corporations (Itics) with banks by not allowing them to borrow in overseas and domestic markets.
'They have to rely on debt recovery and asset disposal to raise funds, but the process is pretty slow.' Guangzhou Shipyard secretary Wang Wenhui said Gzitic had offered to the company properties in Macau worth about 600 million yuan as collateral.
He said the company was appointing lawyers to look into the properties' ownership and value.
