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mr. gao from inner mongolia originally thought that the annualized return of 8.5% was very good and the one-year risk was relatively small, so he purchased 210,000 yuan of "municipal bonds" from shandong zibo boshan district public assets management co., ltd. he did not expect that it is now difficult to recover the principal.

subscribe to municipal bonds——

spend 210,000 yuan to subscribe to the "2022 zibo public bond plan"

the funds will be used for the new materials industrial park project in badou town, boshan district

in december 2022, mr. gao from inner mongolia subscribed to the "2022 zibo public bond plan" of shandong zibo boshan district public assets management co., ltd.

according to the "product share confirmation letter of zibo boshan district public assets management co., ltd.", the subscription amount is 210,000 yuan; the term is 12 months; the product duration is "december 24, 2022 to december 24, 2023"; the performance benchmark is "annualized 8.5%". product income distribution, "quarterly interest will be paid on the 8th of march, june, september and december each year. after the current product expires, the issuer will pay the investment principal and the remaining unpaid interest to the original payment account within 10 working days."

according to the "subscription agreement", the "2022 zibo public bond plan" is a "targeted financing registration" product, and the funds will be used for the new materials industrial park project in badou town, boshan district.

overdue repayment of principal:

it is difficult to repay the principal of the municipal investment bonds when they mature. the company said that it would repay 3% of the principal each period.

“the plan still cannot be paid on time”

mr. gao said that at first, he received interest rebates from boshan district public assets management company every quarter, about 4,500 yuan per quarter except for the first quarter, when he received more than 3,600 yuan. in january 2024, according to the agreement, the company should return the principal of 210,000 yuan, but something went wrong.

according to the chat records, a staff member told mr. gao, "according to the centralized redemption policy and the company's month-end fund receipts, investors whose bonds mature in december must initiate centralized redemption at the end of january (the following year). the funds include the remaining interest during the subscription period and the principal of no less than 3% of the total investment amount..."

"they told me that due to the company's financial constraints, they can only return 3% of the principal every month." mr. gao said that even if he agreed to the other party's repayment plan, the other party would not be able to repay on time.

according to the transfer records, mr. gao only received 3% of the total principal in january, february, april, june and august 2024. "the money in january was redeemed after i provided proof of my family's illness and hospitalization. in august, i called them many times because i needed money urgently, and the other party redeemed 3%."

response from relevant parties:

district finance bureau: the repayment will be made in batches, at different times and in proportion according to the repayment plan.

company: we are building up our hematopoietic capacity and strive to repay 3% of the principal every month

tianyan check shows that the registered capital of boshan district state-owned assets management company is 2 billion yuan; the actual controller is the "zibo city boshan district finance bureau."

mr. gao said helplessly, "i originally thought that municipal bonds were a stable investment, but i didn't expect it to become a bottomless pit. now my family is in urgent need of money, but the boshan district state-owned assets management company has not been able to repay." he complained to the higher authorities.

according to the reply from the boshan district finance bureau on march 4 this year, mr. gao's complaint is true, the interest on the 210,000 yuan fixed-term financing product has been fully paid, and the principal has been redeemed according to the redemption plan formulated by the company... the company will redeem the principal in batches, time and proportion according to the redemption plan. at the same time, based on the actual situation you reflected, the company will continue to speed up the redemption speed and increase the redemption ratio as much as possible, and strive to complete the redemption as soon as possible.

on the afternoon of august 28, a reporter from huashang daily contacted boshan district public assets management company. the relevant staff said that the company is still building up its hematopoietic capacity, and the specific scale of the bonds involved is still unclear. "we are actively raising funds and repaying subscribers in proportion."

the person in charge said that the problem of repayment difficulties has not been around for long. at present, the company plans to repay investors at 3% of the total monthly investment, but the specific amount will depend on the company's monthly inflow of funds.

even if the monthly repayment of 3% of the principal is completed, it will take nearly three years. how will the subscribers’ losses be resolved? the person in charge said that they can only repay the subscribers according to the amount of funds in place. “if there is a lot of funds in place, we will make up the 3% principal owed before, and then guarantee the subsequent monthly repayment of 3%.” “now we mainly guarantee that the principal will be fully repaid to the subscribers, and we can only guarantee the interest before the principal expires.”

lawyer's statement:

urban investment bonds are generally promised by local governments to repay, and are less risky

overdue principal may result in liquidated damages, capital occupation fees, etc.

tian kai, a lawyer at guangdong zhiheng law firm, said that municipal bonds are essentially profitable investments. they are corporate bonds and medium-term notes publicly issued by local investment and financing platforms as the issuing entities. most of the investments are local infrastructure construction or public welfare projects. generally, the local government promises to repay the loan, and if necessary, there are financial subsidies as repayment commitments, so municipal bonds are still very popular.

tian kai pointed out that from a legal perspective, since it is an investment, there are definitely risks. the legal risks of municipal investment bonds lie in two aspects. on the one hand, there is a technical default, because the local government platform failed to raise funds for repayment in time when the product expired, resulting in overdue or delayed repayment. however, for technical defaults, the local government platform will still complete the repayment within a certain period of time, and there will be no actual default. the probability of technical default of municipal investment bonds is small, and the willingness to repay after default is usually strong. on the other hand, there is a substantial default, which generally occurs in areas with low administrative levels, insufficient regional financial strength and high debt ratios, or in low-grade, medium-low-grade municipal investment bonds. in addition, most municipal investment bonds are implicit debts of local governments. if a default occurs, it will have an adverse impact on the government's credibility. so overall, the risk of municipal investment bonds is relatively low, and the risk of default is lower than that of industrial bonds. industrial bonds have experienced multiple substantial defaults, while substantial defaults of municipal investment bonds rarely occur.

tian kai analyzed that in this incident, mr. gao subscribed to the "2022 zibo public bond plan" and "zibo boshan district public assets management co., ltd. product share confirmation letter" of shandong zibo boshan district public assets management co., ltd. then, first of all, the company will bear the principal and dividend interests agreed in the contract, as well as the capital occupation fees that cannot be returned in time. in the future, litigation fees, preservation fees, attorney fees and other costs of realizing creditor's rights may be incurred. at the same time, the company's corporate information disclosure system will also display judicial cases, affecting the company's reputation.

huashang daily news reporter zhang pengkang, editor dong lin