How many collateral scams are going on in China

How many collateral scams are going on in China? Zero Hedge has reported that a borrower named Magic Property is now set to default on a CNY196 million Trust that was arranged by Citic Trust. Magic invested in an office building in Chongqing. They ran into financial problems in mid 2013 at which point Citic attemped to auction the collateral. However, Citic were not able to proceed with the auction because the developer had sold the collateral and also mortgaged it to several other lenders. So, Magic not only sold the collateral... but also mortgaged it to a few other lenders: lenders who count it as a perfectly performing asset when in reality they have zero claims to it. Did they steal that straight from the MF Global instruction manual? (VIEW LINK)