Tumultuous times for China’s tycoons
Xiao Jianhua, who returned to the mainland to assist in investigations, is the latest Chinese tycoon to lose control of his own fate
China’s economic boom in recent decades has created a group of billionaires who amassed wealth at dazzling speed, but who are finding themselves targets in the country’s opaque political and economic system.
Xiao Jianhua, who with his wife ranked 32nd on the Hurun China Rich List 2016 with about US$6 billion, is the latest tycoon to be snatched by China’s opaque law enforcementmachine. Sources told the South China Morning Post that Xiao is in mainland China assisting with investigations.
Below is a brief introduction to some Chinese tycoons who have experienced such troubles:
Xiao Jianhua
Xiao, 46, is the founder of Tomorrow Group, a mainland holding company with business in areas including financial institutions, IT and energy. An investigative report published in April 2013 by New Fortune, a mainland-based financial journal, said Tomorrow Group controls at least nine listed companies as well as 30 financial institutions, including 12 city banks and six brokerage houses, via other entities.
In a rare interview in May 2013 with the 21st Century Business Herald, Xiao denied he committed any crimes while growing his business. Xiao said then that “none of the senior executives at Tomorrow Group has ever been involved in any investigation or questioning by the Chinese authorities”.