The founder of China Evergrande, the world’s most indebted property developer, is currently under investigation for “illegal crimes”. This poses a new challenge for the tycoon and his struggling company as they try to stay afloat. Hui Ka Yan, who established Evergrande in 1996, is the latest tycoon to face scrutiny since Chinese President Xi Jinping came into power in 2012.
Here is a list of other high-profile Chinese executives who have been investigated or arrested during Xi’s leadership:
1. Zhao Weiguo, former chairman of Tsinghua Unigroup, was charged with crimes including corruption and illegally earning profits for his friends and family. Tsinghua Unigroup, which originated as a branch of Tsinghua University, faced financial difficulties under Zhao’s leadership due to excessive debt and unprofitable ventures.
2. Bao Fan, founder of China Renaissance Holdings, was detained in February and is currently cooperating with authorities during ongoing investigations. Bao, a well-connected banker, has been involved in major technology mergers in China.
3. Xiao Jianhua, founder of Tomorrow Holdings, has not been seen in public since 2017. In 2022, he was sentenced to 13 years in jail and his conglomerate was fined billions of yuan by a Shanghai court. Xiao, a Chinese-Canadian billionaire with ties to China’s Communist Party elite, was taken away in a wheelchair from a luxury Hong Kong hotel.
4. Chen Feng, chairman, and Tan Xiangdong, CEO, of HNA Group were taken away by Chinese police in 2021 due to suspected criminal offenses. HNA Group, known for its global acquisition spree fueled by debt, faced bankruptcy administration.
5. Wu Xiaohui, chairman of Anbang Insurance Group, was prosecuted for economic crimes in early 2018. Anbang, an insurance-to-property conglomerate, violated laws and regulations that endangered its solvency. Wu was arrested in 2017 and sentenced to 18 years in prison for fraud and embezzlement.
6. Ye Jianming, founder of CEFC China Energy, agreed to buy a stake in Russian oil major Rosneft in 2017. However, he was later investigated for suspected economic crimes and disappeared from public view. His conglomerate collapsed under a massive debt burden.
These cases highlight the increased scrutiny and crackdown on high-profile Chinese executives under President Xi’s leadership.
