Hundreds of billions of debts, delisted! Why did the capital giants leave the market?

Mondo Sports Updated on 2024-02-02

The ups and downs of economic giants Oceanwide Holdings, a once dazzling name, is now floating in the long history of the Year of the Dragon. According to the "Daily Economic News", *ST Oceanwide was forced to delist by the Shenzhen Stock Exchange and will be delisted in the near future. This marks that Oceanwide Holdings, a giant listed on the Shenzhen Stock Exchange for nearly 30 years, has finally ushered in an embarrassing endgame. In 2021, Lu Zhiqiang, chairman of Oceanwide Group, apologized to **, admitting that he underestimated the predicament faced by Oceanwide. At that time, the predicament was only the cusp of Oceanwide's encounter, and in just over 2 years, this once 100-billion-level business empire fell to the ground. Lu Zhiqiang, who was once known as the "godfather of capital" in the mainland, seems to be helpless.

Lu Zhiqiang, born in Weihai, Shandong Province in 1952, graduated from the Department of Economics of Fudan University, and was one of the few top students at that time. In 1985, he resolutely gave up the "iron rice bowl" of the deputy director of the Weifang Technology Development Center and chose to step into the business world. According to public reports, he first ventured into the field of education and training, earning a small fortune. But what really made his fortune snowball was the real estate industry. In 1993, he led the development of Weifang Oceanwide Hotel, Oceanwide City Garden and other projects, thus accumulating a certain amount of capital in the real estate industry.

Lu Zhiqiang was not satisfied with being famous in Shandong, and he decided to go north to Beijing. In 1995, Oceanwide cooperated with Lenovo, Sitong and other companies to establish Guangcai Business Investment Management, which was later renamed Guangcai Business Investment Group and backdoor listing. The company's first name was changed to Oceanwide Holdings, and the listing opened a new chapter for Lu Zhiqiang, which also made him have a strong interest in the capital market. In 2000, Lu Zhiqiang won with 1600 million yuan of ** successfully won the Minsheng Bank 1300 million shares, becoming its second largest shareholder. Minsheng Bank's abundant cash flow allowed Lu Zhiqiang to emerge in the capital market. In 2007, Lu Zhiqiang became the first person in A-shares with a total market value of 260.9 billion yuan from Minsheng Bank and Fanhai Holdings, and his personal wealth also reached 85 billion yuan, becoming the richest man in Shandong. His status in the rivers and lakes is even more unshakable, and he is known as the "godfather" of the domestic capital industry.

At the peak of the financial market, Lo was not content to stop at the banking sector. In 2002, he acquired Huanghe** and changed its name to Minsheng**, successfully entering the capital market. Subsequently, Oceanwide has set foot in a number of fields, including real estate, energy, finance, technology and overseas investment, becoming one of the few private capital families with full financial licenses. According to statistics, Oceanwide Holdings participated in dozens of listed companies at its peak, with total assets of more than 300 billion yuan, involved in various fields, and became a figure of the year in the capital market.

The frenzied expansion has also brought great difficulties to Oceanwide. In the environment of capital ebb and real estate cooling, Oceanwide frequently stepped on thunder. In 2020, Minsheng Trust stepped on the "fake ** case", which became the fuse of Oceanwide's debt crisis. Minsheng Trust found that the ** mortgage of Wuhan Jinhuang was fake, triggering a chain impact on Oceanwide. This case reveals the cost of Oceanwide's frenzied expansion, and the dilemma of insolvency is irreparable. By the third quarter of 2023, Oceanwide Holdings' total assets will be only 906700 million yuan, with total liabilities as high as 981200 million yuan, the predicament of insolvency has been irreversible.

Oceanwide Holdings, a former giant, is now in an unprecedented predicament. Lu Zhiqiang gave up his iron job and once emerged from the real estate industry by virtue of his aim at real estate. In the process of continuous expansion, he frequently stepped on thunder, including finance, real estate, overseas projects and other fields, which eventually led to insolvency and faced the fate of delisting. This former godfather of capital, now adrift in the business sea, has also sounded the alarm for other entrepreneurs, and the expansion of greedy and inflated capital may bring about a catastrophe. Perhaps, the sinking of Oceanwide Holdings has become the end of a business legend. Lu Zhiqiang gave up the original "iron rice bowl" and chose the point of no return, and once wrote a successful chapter in the business world with his sense of smell of real estate. Behind success often comes great risks and costs.

Lu Zhiqiang's initial success came from a keen insight into real estate, and then through the expansion of Oceanwide Holdings in the financial sector, his career entered a leading period. He has become one of the entrepreneurs with the highest A** value and is known as the man of the year in the capital market. The sudden collapse of his fortune and career also exposed the risks of overextension and blind risk-taking.

Oceanwide Holdings' diversified business strategy, although it has brought it huge wealth for a period of time, has also become the fuse of its downfall. Expanding into many fields such as finance, real estate, and overseas projects, Oceanwide Holdings' huge system makes it difficult for it to cope with changes in the external environment. The volatility of the capital market, policy adjustments and the uncertainty of the global economic situation have made Oceanwide Holdings fall into an increasingly complex situation.

In the financial field, the "fake ** case" of Minsheng Trust has become the fuse of Oceanwide's debt crisis. This not only caused a serious impact on the capital chain of Oceanwide Holdings, but also caused it to fall into a crisis of confidence. The chain of funds was broken, so that Oceanwide Holdings began to enter the point of no return. The huge investment in the real estate sector of Oceanwide Holdings, which has expanded wildly, has also become an important part of its debt. In 2018, Oceanwide Holdings' total liabilities were as high as 183.7 billion yuan, and the asset-liability ratio was as high as 87%, which is already an extremely dangerous signal.

Today, Oceanwide Holdings' total assets are less than 100 billion yuan, while its total liabilities are as high as 981200 million yuan. In a state of insolvency, delisting becomes an inevitable outcome. Lu Zhiqiang was once the richest man in Shandong and the godfather of the capital market, but now he is powerless to save Oceanwide from sinking. All this may be the price of over-expansion and blind risk-taking, and the end of the business saga.

The fall of Oceanwide Holdings is a wake-up call to us, success is not the same as eternity, and every expansion needs to be treated with caution. In the business world, risks and opportunities coexist, and excessive risk-taking can lead to huge mistakes. As self-leading creators, we can learn from the story of Oceanwide Holdings, deeply think about the risks that may be hidden behind success, and provide a richer perspective for our own creation.

Perhaps, Lu Zhiqiang's experience can become a profound lesson in the business world, so that more entrepreneurs and entrepreneurs realize that in the pursuit of success, it is also necessary to be cautious about risks and keep a clear head. Every step on the road to business requires careful thinking and avoiding potential risks. The story of Oceanwide Holdings tells us that the hidden risks behind success can explode at any time, and only by operating cautiously can we be invincible. I hope that every creator can keep a clear head on the road of creation and present more valuable content to readers with deep insight.

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