Core Viewpoint - A financial product redemption crisis exceeding 10 billion yuan has pushed Yu Faxiang, the actual controller of Xiangyuan Cultural Tourism, to the brink of collapse [1][8]. Group 1: Financial Crisis - On December 16, 2023, it was announced that all shares held by Yu Faxiang and Xiangyuan Holdings were judicially frozen due to the inability to redeem multiple financial products guaranteed by them [1]. - The Zhejiang Financial Assets Exchange Center reported that a significant amount of funds related to these financial products, amounting to over 10 billion yuan, faced default [5][20]. - The crisis has exposed Yu Faxiang's financial risks, with total assets of approximately 60 billion yuan against liabilities of 40 billion yuan, indicating a precarious financial situation [1][5]. Group 2: Company Background - Yu Faxiang, aged 55, has built a cultural tourism empire with total assets exceeding 60 billion yuan, spanning various sectors including tourism, infrastructure, and marine parks [1]. - The company has been heavily reliant on capital operations, with a history of aggressive financial strategies that have led to significant leverage [18]. - The company has faced challenges due to a downturn in the real estate market, which has strained its cash flow and financial stability [1][19]. Group 3: Government Intervention - A support task force organized by the local government has entered Xiangyuan Holdings to manage risk and protect investor interests [21]. - The task force aims to assess the company's operational status and categorize assets for targeted assistance in addressing debt risks [21]. Group 4: Regulatory Issues - In October 2023, the China Securities Regulatory Commission initiated an investigation into Yu Faxiang for alleged violations of information disclosure laws, which has further complicated the company's financial standing [6]. - The Zhejiang Financial Assets Exchange Center's cancellation of trading qualifications has severely restricted the company's financing options, exacerbating its liquidity issues [19].