Six financial giants among top shareholders of China's largest wig manufacturer which uses prisoners to make its products
Six of the world's largest financial institutions have bought shares in a Chinese wig manufacturer that could be barred from the United States, its biggest market, because it uses forced labour to make some of its products.
Deutsche Bank, HSBC, ING, Merrill Lynch, Morgan Stanley and UBS have all bought Shanghai-listed A shares in Henan Rebecca Hair Products, China's largest wig maker, through the qualified foreign institutional investor (QFII) scheme, according to the mainland company's half-year financial statement. The banks are all among Henan Rebecca's top 10 shareholders.
Their presence on the company's share register highlights some of the unique pitfalls overseas investors face as foreign capital pours into China's capital markets. This is especially true for big international banks, which often buy shares on behalf of clients.
On Saturday, guards at Henan No3 Labour Re-education Camp and the Xuchang County Labour Re-education Camp told the South China Morning Post that inmates were employed in making half-finished products for Henan Rebecca.
Workers at Henan Rebecca also confirmed that low-skilled processing work was done by inmates in the two camps and their output sent to the Shanghai-listed firm for finishing into wigs, weaves and toupees for export to the US, Europe and Africa.