HNA Group Chairman and CEO arrested by police in China


In a brief statement on Friday, the embroiled group said the two officers were “placed under mandatory measures” by the Hainan provincial police for suspected criminal offences.

It was not specified which laws were suspected to have been broken. In China’s legal system, “compulsory measures” by the police usually precede a formal arrest.

HNA CEO, also known as Adam Tanu, was listed as a US citizen filing With the US Securities and Exchange Commission in November 2018. The US embassy in Beijing declined to comment.

In a statement posted on social media on Friday, HNA said the firm and its subsidiaries were “operating in a stable and orderly manner, with the restructuring work proceeding in accordance with law.”

“Business operations have not been affected in any way,” he said.

The news of Tan’s detention came the same day it was announced that the Huawei CFO meng wenzhou had reached an agreement with the US Department of Justice and was allowed to return home from Canada, where he spent nearly three years under house arrest.

HNA. asked about executive At a media briefing on Monday, a spokesman for China’s foreign ministry said he was aware of neither Tan or his case.

HNA began as an airline more than two decades ago, but rapidly evolved into another Lines of business over the years through foreign acquisitions as well as investments in real estate and finance.

Starting in 2015, the group started a $40 billion shopping spree He investment involved In Hilton (HLT) And Deutsche Bank (database). By the end of 2017, HNA’s properties topped 1.2 trillion yuan ($186 billion).
But those acquisitions were built on a mountain of debt, which reached 707 billion yuan ($110 billion) as of June 2019. The company’s crisis was exacerbated by the coronavirus pandemic and by government officials in Hainan in February 2020. took control.
HNA once wanted to rule the world.  Now it's facing bankruptcy

At the request of the company, Province officials set up a “working group” with other agencies to resolve the company’s financial crisis.

News of officials’ trouble this week comes as another major Chinese business Is facing the spotlight For your own debt woes.
For weeks, investors have been waiting to find out what will happen to the Chinese conglomerate evergrande, with global markets affected by fears of contagion.
The property developer is facing a huge cash crunch, which is being seen as a major test for Beijing. Some analysts fear it could also belong to China Lehman Brothers Moment, sending shock waves across the world’s second largest economy.
5 things to know about the Evergrande crisis: a simple breakdown
China is also in the midst of a massive action Aims at your private sector, from technology to finance.

However, even state-owned entities have not remained untouched by this. Along with other government entities, they appear to be the latest target in Beijing’s growing scrutiny of the behemoth, the financial sector.

On Sunday, the country’s top anti-corruption official called for “intense disciplinary oversight of financial institutions”, according to the state-run news agency. Xinhua has.

The outlet said Zhao Leizhi, a top politician and member of the Communist Party’s Politburo Standing Committee, had urged financial institutions to take action to better meet the needs of the common people and avoid systemic financial risks.

The ruling Communist Party’s anti-corruption watchdog has approved a new round of inspections, which will investigate party organizations in 25 financial institutions, Xinhua news agency reported. official website.

In China, it is common for major companies to create internal organizations to ensure that their companies remain party compliant.

Institutions facing scrutiny include the country’s central bank, the top financial regulator, the Shanghai Stock Exchange and the so-called “Big Four” state banks.

– CNN’s Beijing Bureau, Laura Hay and Jill Disis contributed to this report.

.



Source link

Popular Topics

Related Articles