Chinese tycoon fined $12 billion, jailed

Chinese-Canadian billionaire Xiao Jianghua, who hasn’t been seen in public since 2017, has been sentenced to 13 years in prison and his Tomorrow Holdings conglomerate has sold a record $55 billion. fined 30 million yuan (A$11.8 billion).

Xiao and Tomorrow Holdings have been charged with illegally siphoning public deposits, betraying the use of entrusted property, illegally using funds and bribery, the Shanghai First Intermediate Court said on Friday.

He added that the punishment was reduced because both sides admitted their crimes and cooperated in recovering illegal gains and recovering losses.

The Chinese-born Mr. Xiao, who is known to have ties to the Chinese Communist Party elite, was last seen in the early hours of January 27, 2017, when he was whisked from a luxury hotel in Hong Kong in a wheelchair.

The court said Xiao and Tomorrow committed “serious violations of financial control orders” and “harmed national financial security,” and fined the heavyweights an additional 6.5 million yuan.

Between 2001 and 2021, Xiao and Tomorrow provided stocks, real estate, cash and other assets totaling more than 680 million yuan to government officials to evade financial supervision and seek illegal profits, the court said. rice field.

In July 2020, nine of the group’s affiliated entities were seized by Chinese regulators as part of a crackdown on the risks posed by financial conglomerates.

Among the nine companies were four insurers: Tianan Property Insurance, Huaxia Life, Tianan Life, Yian General Insurance, New Times Trust and New China Trust.

The other three companies are Cheng Tong Securities, Kuksa Securities, and Kuksa Futures.

The court said that since 2004, Xiao and Tomorrow had controlled multiple financial institutions and Internet financial platforms (including the failed Baoshang Bank) through multiple layers of indirect shareholders and anonymous ownership.

Xiao said he used the illicit profits to buy financial institutions, trade securities and invest abroad. However, it admitted that he tried to make amends.

“Since Xiao Jianhua has acted commendably, we have reduced his punishment according to the law,” it said.

Asked about Xiao’s right to access consulates as a Canadian citizen at a Friday briefing, Chinese foreign ministry spokesman Wang Wenbin said Chinese law does not allow dual citizenship, so China’s foreign ministry spokesman Wang Wenbin said that Xiao could not stated that no such rights were granted.

Canada’s Ministry of Foreign Affairs said it was aware of media reports of the verdict and said officials would monitor the case and seek consular access.

“Mr Xiao’s lack of transparency in legal proceedings is highly disturbing, and his continued lack of consular access prevents us from assessing his health,” the statement said. Stated.

Tomorrow Holdings could not immediately be reached for comment.