China’s First Personal Bankruptcy Case Granted by Shenzhen Court

The Shenzhen Intermediate People's Court in South China's Guangdong Province on Monday granted a personal application for bankruptcy protection, the first such case since relevant laws went into effect in March, the Global Times reported. The application was filed by Liang Wenjin, a local entrepreneur in the Bluetooth earphone industry whose company went bankrupt due to unstable sales and the effect of the COVID-19 pandemic. According to the application, Liang's assets were valued at about 40,000 yuan ($6,167) and his 20,000-yuan fixed monthly income can't cover his debts of 750,000 yuan immediately. The court ruling on Monday means that Liang's has three years to repay the entire principal to his creditors with interest and late fees waived. According to the Shenzhen Special Economic Zone's personal bankruptcy regulation issued in March, part of Liang's income, except for about 7,700 yuan for his own and his wife's daily expenditures, will be used for repaying his debts. The protection regulation currently is only available for residents in Shenzhen, but officials have vowed to improve bankruptcy protections nationwide. Read more.