Brilliance China is a state-owned autos manufacturer which has a joint venture with BMW to produce cars in mainland China. In 2020 and earlier periods, management of some of Brilliance's subsidiaries provided unauthorised financial assistance to its financially stressed parent, Huachen, as well as certain other parties. This included unauthorised bank guarantees, pledges of short-term deposits and direct funding. Brilliance recorded total provisions and other charges of around RMB7.9bn in FY20 when the fraud was uncovered. The independent investigations initiated by the company found clear evidence of fraud. Brilliance’s shares which had been suspended since March 2021 restarted trading in October 2022.
Last updated May 2023
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