Beijing Investigates Chinese Business Magnate Amid Allegations
The Central Commission for Discipline Inspection (CCDI) in China is intensifying its efforts to combat corruption by investigating prominent business leaders in the country. One such individual under investigation is Zhou Jun, the president of Shanghai Industrial Investment. According to CNN, Zhou is suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervisory investigation.
Zhou recently resigned from his positions at several state-owned group’s Hong Kong listed subsidiaries, citing personal matters. However, this move may have been related to his ongoing investigation. Shanghai Industrial Investment has business interests in infrastructure, property, and pharmaceuticals. The CCDI also announced an investigation into Zhang Hongli, a former senior executive vice president at the Industrial and Commercial Bank of China earlier this month.
Other prominent business leaders in China have also come under scrutiny this year. Over a dozen executives from various sectors such as technology, finance, and real estate have faced disappearing or detaining or corruption investigations. This has had a significant impact on the business community in China as entrepreneurs are now lying low or lying flat due to fear of political interference and prosecution.
Similar unconfirmed reports have surfaced about the disappearance of tech entrepreneur Chen Shaojie, founder and CEO of DouYu, a Chinese live-streaming service backed by Tencent. International consulting firms are also at risk of being raided or having their executives detained per CNN.
In order to protect entrepreneurs from political interference and prosecution, Fred Hu, CEO of Primavera Capital emphasized the need for China to reform its legal system during a speech at the Bloomberg New Economy forum.
