China’s richest tycoons hit by debt defaults, arrests and suicides in 2019 amid tightening regulation
- A number of China’s wealthiest businesspeople fell from grace in 2019 amid debt defaults, criminal charges and tightening government regulation
- Beijing is trying hard to assure private businessmen they are valued, but analysts say they will ‘continue to face challenges in the year ahead’
The year 2019 will be remembered as one of the toughest for China’s rich, with a long list of business owners falling into disgrace amid debt defaults, arrests and suicides, a development that has dampened private investment confidence and prompted comforting messages from Beijing.
Following a tumultuous 2017 and 2018, which saw super tycoons like Xiao Jianhua disappear from a luxurious Hong Kong hotel, Anbang Insurance Group chairman Wu Xiaohui arrested, and the death of HNA Group chairman Wang Jian in France, the difficulties facing China’s capitalists spread wider last year.
Among the notable falls from grace were Wang Sicong, the son of China’s former richest man Wang Jianlin. The billionaire’s son, who gained notoriety on Chinese social media for his colourful personal life and playboy style, was listed by Chinese courts in November as unable to repay his debts after his live streaming venture Shanghai Panda Entertainment went bankrupt. He has since settled with creditors, according to a statement from Prometheus Capital, of which Wang is a chairman.
I don't care if I make friends that have money or not. They won’t have as much money as I do anyway
The wealth of Wang’s father also shrank as Beijing targeted his Wanda Group for excessive borrowing and overseas investments.