Baosteel subsidiary drops case against General Nice

Ningbo Steel (宁波钢铁) has withdrawn a petition to wind up Loudong General Nice Resources, General Nice Group’s HK-listed company, soon after the latter reacted with claims for $100m as compensation for damages to its reputation. Ningbo Steel, a subsidiary of state-owned steel giant Baosteel, is claiming some $1.2m in unpaid debts. For some background on Ningbo Steel, check my post from a few days ago.

In other news, it has emerged that a sixth of Loudong General Nice is now owned by Zhuguang Holdings (珠光控股), a property developer led by Zhu Qingyi 朱庆伊 (also known as Zhu Qingsong/Chu Hing Tsung 朱庆凇). Mr Zhu and his elder brothers, Zhu Layi 朱拉伊 and Zhu Mengyi 朱孟依, possess a diversified business empire whose origins go back to the early 2000s. The Zhus stem from the Chaoshan 潮汕 region of Guangdong province, just like General Nice’s chairman Cai Suixin 蔡穗新. Zhu Mengyi is rumoured to be have been banned from leaving the country amid a corruption crackdown targeting collusion between real estate developers and officials, notably disgraced Guangzhou Party secretary Wan Qingliang 万庆良.

Zhuguang‘s stake in Loudong General Nice is owned through a BVI company that acquired company shares last December as part of a deal involving oil fields in the US. There’s more on that deal in my recent background article on General Nice.