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Chinese tycoon Xiao Jianghua detained in Hong Kong, fined $11.7 billion

China has sentenced Chinese-Canadian financier Xiao Jianghua to 13 years in prison, fined his company Tomorrow Holding 55 billion yuan ($11.7 billion), and put the tycoon’s business on hold. It put an end to a long-running narrative in which many of the top gains had been suppressed. Since he was seized in Hong Kong more than five years ago.

Xiao was found guilty of misappropriating public funds, breach of trust, bribery and misappropriating funds, according to a ruling by the Shanghai First Intermediate People’s Court on Friday. Shao used his own financial network to provide pooled funds, sell insurance and other investment products, and sell his 311.6 billion yuan ($66.3 billion) to the general public alone, according to the court. I absorbed more.

Chinese-born Canadian billionaire Xiao Jianghua reads a book outside the international financial center of Hong Kong.credit:APs

The trial marks Xiao’s first public appearance since 2017, when he was taken out of a Four Seasons hotel room in Hong Kong where he had been staying for several years after fleeing China. Xiao, then a student leader of the 1989 pro-democracy movement, had his fortune estimated at about $6 billion before he went missing, according to the Hurun Report of China’s Richest People. was part of

An investigation into Xiao and his financial network, which includes more than 40 financial institutions, has undermined confidence in the $59 trillion financial system to eradicate illegal activity and ensure financial stability. It was part of a broader effort by the authorities of

After taking control of Baoshang Bank Co., another lender linked to Xiao, in mid-2020, Chinese regulators criticized Xiao for its “serious” credit risks. Assumed control of nine related financial companies.

Chinese-born Canadian citizen Xiao Jianghua.

Chinese-born Canadian citizen Xiao Jianghua.credit:south china morning post

In 2018, the central bank of China identified Mr. Xiao’s investment conglomerate as one of several “financial holding companies” that needed to be scrutinized for ownership structure, related transactions and funding sources.

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President Xi Jinping’s administration has placed greater emphasis on financial risk management in an economy already facing headwinds from coronavirus lockdowns and a downturn in the property market. In June, the Chinese government claimed to have won an anti-corruption investigation of financial institutions. Financial institutions have investigated or punished dozens of officials to curb risks and tighten corporate governance.

Chinese tycoon Xiao Jianghua detained in Hong Kong, fined $11.7 billion

Source link Chinese tycoon Xiao Jianghua detained in Hong Kong, fined $11.7 billion

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