Core Viewpoint - The incident highlights a rare case of a client actively reporting serious violations by a lender, involving a significant dispute between the Hong Kong-listed property company Kaisa Group and a small loan company, Sunshine New World [1][2]. Group 1: Incident Overview - Kaisa Group filed a complaint against Sunshine New World for serious operational violations and illegal fundraising after the latter initiated a winding-up petition against Kaisa for approximately 642 million yuan in unpaid loans and 136 million yuan in accrued interest [1]. - The case marks the first cross-border winding-up petition initiated by a domestic small loan company against a large property enterprise, drawing significant market attention [1]. Group 2: Allegations Against Sunshine New World - Kaisa Group claims that Sunshine New World engaged in systemic violations by using shell companies to circumvent core regulatory requirements related to loan concentration, funding sources, and operational scope [1][3]. - The total amount of entrusted loans from Kaisa to Sunshine New World reached 2.45 billion yuan, with disputes primarily arising from loans issued in 2021 and 2022 [3][8]. Group 3: Regulatory Context - The small loan industry has seen a trend where certain regions, like Shandong, previously allowed entrusted loans, but these practices have faced increasing scrutiny and regulatory restrictions [4][5]. - Kaisa's allegations include that Sunshine New World continued to conduct entrusted loan activities despite a change in its business scope that removed such activities, amounting to 1.17 billion yuan in loans post-change [6][8]. Group 4: Industry Implications - The incident is expected to bring to light hidden practices within the small loan industry, potentially leading to broader discussions and regulatory scrutiny [2][10]. - The ongoing dispute has implications for the regulatory landscape, as Kaisa's complaint has prompted local authorities to review Sunshine New World's compliance with existing policies [10].