China Briefing | Billionaire Wu’s detention signals China’s clean-up of financial sector is in full swing
Hard-nosed investigations into bribery and market manipulations among aggressive investors and private insurers seem likely to uncover more bad players inside the government and out
Xiao is no ordinary Chinese tycoon. Through his flagship company Tomorrow Group, he controls dozens of small commercial banks and securities brokerages in China and has top-level political connections. He represents a modern-day Chinese version of the robber barons who once held huge sway over China’s financial sector. In particular, paraphrasing a Chinese idiom, he is known for his powers to “call the wind and summon the rain” over the mainland’s stock markets.
He is apparently wanted for top-level bribery and market manipulation, particularly his role in the 2015 meltdown of the Chinese stock markets as leaders are increasingly worried about political and financial risks building up in the financial sector.
Once in custody, Xiao is believed to have been very cooperative, spilling the beans on his comprehensive under-the-table dealings with Chinese officials and his manipulation of the stock markets to his huge advantage.
