U.S. Markets closed

China Commercial Credit CEO Reports on Strength of Company's Real Estate Collateral

WUJIANG, CHINA--(Marketwired - Jan 2, 2014) - China Commercial Credit, Inc. ( NASDAQ : CCCR ), a microfinance company whose major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today commented on the strength of the real estate holdings it possesses as collateral against direct loans. 

CEO and founder Mr. Huichun Qin said that the market value of these holdings, which represent less than 10 percent of the company's total outstanding loan portfolio, is "entirely stable" and has as an aggregate experienced a moderate increase in value since being accepted by CCCR as collateral for direct loans. Moreover, loans made by CCCR against these holdings never amount to more than 75 percent of the holdings' appraised market value, ensuring that CCCR always retains a significant cushion against any drop in this value.

Further, said Mr. Qin, no loans have been made to real estate companies themselves. On the contrary, all of China Commercial Credit's loans are short-term, and the large majority are made to SMEs and farmers whose ability to pay back these funds is carefully analyzed and reviewed by CCCR's executive staff. In fact, due to the company's strict oversight of loan risk, China Commercial Credit has experienced only a total of 400,000 RMB (about $65,000) in unrecoverable loans since the company's inception in 2008. This is a tiny fraction of total loans made by CCCR during that time, and far lower than the industry norm of bad debt.

Third, all of the real estate collateralized by CCCR is located in Suzhou, one of China's most economically expansive cities. According to recent government data, real estate values in Suzhou have increased significantly in the last ten years, and, as mentioned above, the collateralized real estate held by CCCR in Suzhou has experienced a moderate increase in value since being accepted as collateral.

"We carefully monitor the ongoing market value of all real estate held as collateral for direct loans," said Mr. Qin. "I can personally assure shareholders that the value of these holdings is entirely stable, and, in fact, is among the most highly regarded industrial real estate in Jiangsu Province.

"As a company that has had minimal bad debt since inception, we take collateral risk extremely seriously. We simply will not accept any collateral, including real estate, that does not meet our stringent standards of risk protection."

Mr. Qin, who founded China Commercial Credit in 2008, is a former Vice President at the Wujiang Branch of Peoples Bank of China and former Deputy Director of the State Foreign Exchange.

About China Commercial Credit

China Commercial Credit (http://www.chinacommercialcredit.com), founded in 2008, provides business loans and loan guarantee services to more than 360 small-to-medium enterprises (SMEs), farmers and individuals in China's Jiangsu Province. Due to recent legislation and banking reform in China, these SMEs, farmers and individuals -- which historically had been excluded from borrowing funds from State-owned and commercial banks -- are now able to borrow money at competitive rates from microfinance lenders. According to 2012 data, SMEs, farmers and individuals account for eight of ten jobs in China and comprise 60 percent of the nation's GDP.

Investors wishing to receive CCC's corporate communications as they become available may go to http://www.ir-site.com/china-commercial-credit/default.asp and register under Email Alerts.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of United States securities laws. You should not rely upon forward-looking statements as predictions of future events. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. You should review the factors described in the section entitled "Risk Factors" in our prospectus filed with the SEC on August 14, 2013 and other documents we file from time to time with the SEC. We qualify all of our forward-looking statements by these cautionary statements.