Chinese tycoon ‘helping inquiries’ into 2015 stock market turmoil and case of former top spy

A Chinese billionaire who disappeared mysteriously from his luxury Hong Kong hotel over the Lunar New Year weekend is now on the mainland and “assisting investigations” into the stock market turmoil of 2015 and the case of a former top spy, several sources have told the South China Morning Post.

A source familiar with Xiao Jianhua’s movements said the founder of Beijing-based Tomorrow Group was “persuaded” to cooperate rather than coerced by mainland agents who visited him at his serviced apartment in the Four Seasons Hotel last Friday.

It remains unclear in what capacity the mainland agents came to Hong Kong, or which agencies they represented. But the case has sparked fears that the agents might have been acting beyond their jurisdiction in crossing the border to carry out law enforcement work, thereby violating the city’s rule of law.

The investigation is said to be focused on manipulation that contributed to panic selling during the 2015 market rout.

The investigation is also believed to be related to disgraced former vice-minister of state security Ma Jian, who came under suspicion of violating Communist Party discipline – a euphemism for corruption – earlier that year.

Xiao’s company took out a full-page advertisement in a Chinese-language newspaper yesterday, reprinting a statement it released a day earlier claiming he was “receiving treatment overseas”. Xiao claimed in the newspaper ad to be a Canadian passport holder, although this has not been confirmed. He has also claimed to have a diplomatic passport. Antigua and Barbuda named him ambassador-at-large in 2015, according to a report on news portal Caribbean360.

A source close to the tycoon said Xiao was currently on the mainland and could communicate directly with his family.