ABSTRACT
Most Western experts considered that the Chinese government mishandled the problems at Guangdong International Trust and Investment Company (GITIC). GITIC was established in 1980 by the Guangdong government, with permission from a special order from the State Council. Moreover, the Guangdong government had also to deal with the insolvency of the other trust and investment companies, as well as the insolvency of the huge number of rural financial associations, and urban credit cooperatives within Guangdong. At the time of GITIC’s bankruptcy, China was still under the influence of the Asian Financial Crisis, but the picture had sharply changed by the middle of 2000. Following GITIC’s submission of bankruptcy papers to the Guangdong provincial high court, the liquidation process was in the hands of the court. Since this was China’s first major bankruptcy since 1949, handling the case was a big responsibility for the Guangdong high court.
