Sunac China was once China’s fourth-largest real estate company. 

In September, it defaulted on an almost $15 billion offshore corporate bond. Its creditors in Hong Kong filed a bankruptcy liquidation petition. 

News broke on Thursday, October 27, that Sunac forgot to lock a safe jointly shared with Zhongrong Trust. Sunac allegedly stole the business seal, replaced the safe lock, and transferred away all 1.56 billion yuan or $215.10 million from a custody account, mostly to the Wuhan government. An analyst said that the government had somehow been discreetly directing the case behind the scenes.

Where is the money going? Over 13.4 million yuan or over $1.8 million was transferred to the account of “Wuhan Sunac Foundation Holdings Group.”Over 1.1 billion yuan  was transferred to a special account for a construction project. The project was set up by a district in Wuhan. The rest, about more than 400 million yuan was transferred to the government’s supervision account for several Sunac projects.

Xiaocui is a financial commentator. He said that despite being a big listed company, Sunac even opened the safe of a trust company and stole money from it. He compared this to the act of the crime group.

Xiaocui said that Sunac took the money to effectively help the Wuhan government make sure of the handover of some project buildings. Who benefits? It’s the Wuhan government. Moreover, the money was stolen, but the Wuhan government doesn’t seem to want to give it back.

Who forgot to lock the safe? Xiaocui said that a surveillance video should have been able to identify the culprit, and that the bank may be involved. To move large amounts of money, Xiaocui said that besides the company seal, there must be signatures by the related parties in the co-management account. If the bank doesn’t verify the signature, the government may have told the bank to do so. Then it’s probably the government that’s working behind the scenes.

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