China Commercial Credit commented on the strength of the real estate holdings it possesses as collateral against direct loans. CEO and founder Huichun Qin said that the market value of these holdings, which represent less than 10% 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% of the holdings' appraised market value, ensuring that CCCR always retains a significant cushion against any drop in this value. Further, said 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 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.