This page has been archived and commenting is disabled.

Crony Capitalism Comes To China - Ex Central Bank Chief's Son-In-Law In Insider-Trading Scandal

Tyler Durden's picture




 

As China's anti-corruption crackdown continues, the crony-capitalists are slowly exposed. As EJ Insight reports, the son-in-law of former PBOC governor and former Tianjin mayor Dai Xianglong bought millions of dollars of shares (via offshore entities) ahead of Beijing's decision to allow mainland residents buy Hong Kong stocks directly.

 

 

As EJ Insight reports,

The son-in-law of former Tianjin mayor Dai Xianglong spent millions of Hong Kong dollars buying shares in the special administrative region one year before Beijing announced in August, 2007 plans to pilot its “through train” scheme to let mainland residents buy Hong Kong stocks directly.

 

According to an investigation by Ming Pao Daily and the International Consortium of Investigative Journalists, Che Fung bought nearly HK$100 million worth of Hi Sun Technology (00818.HK) shares at HK$1.46 apiece in March 2006 through his wholly owned BVI vehicle Ever Union. A month later, Hi Sun announced a one-to-four share subdivision.

 

Che sold some of the shares in December 2006, creaming off HK$240 million after costs, the report said. Che still has 90 million shares in the company.

 

The announcement of the “through train” plan helped drive the Hang Seng index to a record in October 2007, with Hi Sun’s shares climbing to HK$3.50, the report said. Then-premier Wen Jiabao said in November that year that the government needed to study the risks before going ahead with the plan. Beijing official scrapped it in January, 2010.

 

Hong Kong exchange data showed that Ever Union has HK$1.4 billion combined shares in Hi Sun, MI Energy Corp. (01555.HK) and Digital Domain (00547.HK).

 

Ever Union’s office in Hong Kong’s International Finance Centre did not respond to a written inquiry from Ming Pao.

*  *  *

The question is - what will they do about it?

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 07/07/2014 - 15:23 | 4932668 cifo
cifo's picture

Seems legit.

Mon, 07/07/2014 - 15:26 | 4932688 AlaricBalth
AlaricBalth's picture

Meanwhile, Joe Bidens son, Hunter, is collecting some significant fees from the largest gas producer in Ukraine.

http://www.zerohedge.com/news/2014-05-13/farce-complete-joe-bidens-son-j...

Only in America!!!!

Mon, 07/07/2014 - 15:33 | 4932697 Say What Again
Say What Again's picture

I think that maybe Dai Hanglong has been buying up all of the $SPX, $INDU, and $RUT.

He's getting all of his inside info from the US Congress, who can legally trade on inside information.

.

What's the Over-Under on how long it will take for Dai to "accidently" slip out the window of a very tall building?

Mon, 07/07/2014 - 15:30 | 4932715 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

The infamous "princelings" of China.

Tue, 07/08/2014 - 03:11 | 4934573 Laowei Gweilo
Laowei Gweilo's picture

cronyism comes to China? corruption exposed?

 

most of this has been common knowledge for years

 

it's just "official" now

Mon, 07/07/2014 - 15:53 | 4932822 theXman
theXman's picture

Cronism left China only for a brief decade or so during Mao's years. Then it came back with a vengeance after Deng came to power. 

Mon, 07/07/2014 - 15:24 | 4932673 walküre
walküre's picture

Crony Capitalism COMES to China?

Crony Capitalism IS China

Tue, 07/08/2014 - 08:26 | 4934848 old naughty
old naughty's picture

always wondered what CCP stands/stood for...

 

 

Mon, 07/07/2014 - 15:24 | 4932675 buzzsaw99
buzzsaw99's picture

congress does it every day

Mon, 07/07/2014 - 18:20 | 4932708 AlaricBalth
AlaricBalth's picture

Senator Harry Reid’s son is involved with the Chinese Solar company that is getting Nevada Federal land for pennies on the dollar.

Mon, 07/07/2014 - 15:25 | 4932676 ebworthen
ebworthen's picture

Feed him to ferile dogs or give him a medal.

If he were in the U.S. he'd get Presidential cufflinks.

Mon, 07/07/2014 - 15:26 | 4932689 SumTing Wong
SumTing Wong's picture

It's why he is richer than you!

Mon, 07/07/2014 - 15:28 | 4932703 Say What Again
Say What Again's picture

Maybe he should have a doctor take a look at his throat.  You never know where it has been.

Mon, 07/07/2014 - 15:25 | 4932679 SumTing Wong
SumTing Wong's picture

Shocked blah blah blah...nobody could have seen it coming...not the 1%, they wouldn't screw us. Martha Stewart set him up!

When are we going to finally get pissed off enough about this to bring out nooses, tar, and feathers???

Mon, 07/07/2014 - 15:34 | 4932740 NOTaREALmerican
NOTaREALmerican's picture

When enough people agree on who is "the problem".   Right now,  there's not much agreement.     

Mon, 07/07/2014 - 15:29 | 4932706 10mm
10mm's picture

He is toast, literally

 

Mon, 07/07/2014 - 15:33 | 4932732 NOTaREALmerican
NOTaREALmerican's picture

So...  we need a Communist Party in the US to clean things up?

Mon, 07/07/2014 - 15:34 | 4932736 Pheonyte
Pheonyte's picture

Sad times when China appears more serious about going after corruption than the US DOJ.

Mon, 07/07/2014 - 15:34 | 4932737 Amish Hacker
Amish Hacker's picture

Wow, $100 million. I guess this guy tried to care about money, and he did.

Mon, 07/07/2014 - 15:37 | 4932751 NOTaREALmerican
NOTaREALmerican's picture

Sometimes, you just need a nudge in the right direction.   10 mil,  naaa, really, I just don't care.   100 mil,  well,  you twisted my arm.

Mon, 07/07/2014 - 15:35 | 4932741 Peter Pan
Peter Pan's picture

All -isms suffer from the same weaknesses because human weaknesses are a constant under all systems.

Mon, 07/07/2014 - 15:40 | 4932766 Anusocracy
Anusocracy's picture

True.

Which is why giving a monopoly on the use of force to -isms is absurd.

Mon, 07/07/2014 - 15:41 | 4932768 goldhedge
goldhedge's picture

I bet D.C. remains silent on this subject...too close to home ;)

Mon, 07/07/2014 - 15:42 | 4932778 orangegeek
orangegeek's picture

Crony capitalism comes to China??

 

How about cronyism in China live and well since that cockroach Mao showed up.

Mon, 07/07/2014 - 16:00 | 4932850 redd_green
redd_green's picture

What do you mean "comes to China"?     China is literally built on corrupttion.    The only thing new is that the crooks who run China let this story leak out before they chopped off the heads of teh whistle blowers.

Mon, 07/07/2014 - 16:00 | 4932852 agent default
agent default's picture

Well the difference is that in China, he will probably catch a bullet with his head.

Mon, 07/07/2014 - 16:14 | 4932913 Joebloinvestor
Joebloinvestor's picture

Gee this only took 7 years to discover?

Mon, 07/07/2014 - 20:02 | 4933664 Radical Marijuana
Radical Marijuana's picture

Crony capitalism

= Crapitalism!

Mon, 07/07/2014 - 21:14 | 4933884 earleflorida
earleflorida's picture

"I think that Capitalism will be bad for China" ([sic] Quote Mao Zedong)

Mao Zedong was alot of things, too alot of people,... but, what he wasn't, was corruptible (unscrupulous)!

What Mao had accomplished in his lifetime, was perhaps the most remarkable feat of the 20th century, perhaps the next millenium?!?

The Qing Dynasty had fallen under the coup of Sun Yat-sen known as the father of (ROC/ Formosa- Taiwan) Republic of China. His death in 1925 needed another leader to carry the torch of the nascent 'National Democratic Socialism' party...  the (KMT) Kuomintang of China. That leader would be Chiang Kai-shek [in 1926 Chiang was a close ally/ confidant of Sun] the most corrupt scum bag in modern Chinese history!

Mao Zedong saw what was going on with the KMT, and their pilfering from the peasantry. He formed the (PRC) People's Republic of China, which was based on the Boshevik's... Lenin-Marxist Communist Party.

Thus, a civil war was now full blown in China from 1926 until 1949... between the KMT and the PRC. This was not just any ole civil war in China, but also a foreign war within a sovereign civil war-- the Chinese fighting an exhaustive war within (taking full advantage of the divided China), with the Imperialist Japanese that were thinking of making, or better said annexing the whole of China as their autarky?colony! This was fully demonstrated in Manchukou (Manchuria), and Shanghai.

Needless to say, the USSA spent billions trying to help the KMT win for the western interest, while the Russian's spent alot less but helped both sides ironically until they realized the value of a communist china and went in whole hog supporting Mao. There's alot to be said about this as WWII played a big role regarding Stalin, FDR, and Churchill coming to terms in 1943-44.

The Japanese lose WWII after the bombs are dropped in 1945. Russia destroys Manchukou as agreed upon with Truman (Doctrine?) and Mao is victorious against the KMT! Mao would have won without the Russian's invading Manchuria... but it helped?

Chiang Kai-shek flees ( Chiang had moar Harvard Grad's in his Administration than FDR) to Taiwan (ROC) and Mao wants his head! But, for the time being he settles down for awhile building up the new PRC. The America's are dejected/ rejected for all their time, money, and effort supporting Chiang's KMT party (these KMT were the scum of the bucket, yet we supported them) was a lost cause!

Mao fucks up with the 1958-61 'Great Leap Forward' admitting later it was a big mistake... and becomes somewhat desponent in the final years of his life (Mao dies in 1976) for his greatest mistake... that being, the initiation/ implimentation of the 'Cultural Revolution' {(1966-76)( there were good reasons behind both the 'Great Leap Forward and 'Cultural Revolution')} which brought the country some enlightenment about supreme authority married with unlimited power!

Finally, now that I've spent so much time writing about China, and how we got to where we are in the 21st Century... with this year being 2014 already!

Conclusion: What we have in China today is a replica of the (KMT) Chinese National Party, now in Taiwan, but now in all Mainland China having moar corruption and abuse... moar hostile unscrupulous government surpression, which given the west since Nixon's 1972 visit... having now poisoned the hard work Mao had done, being supplanted by a secretive government (Mao was open!), profusely wanton upon greed and fascism!

Chiang Kai-shek would be proud what Deng Xiaopeng has accomplished! Something, that not even the great powers could have accomplished if they had joined forces.

Mao's communism was unlike Lenin-Marxist in the end?  Mao had always planned a way forward, but he had to be coy, knowing Stalin or the West would eat his country alive with mandatory? volunteering?, slavery... always having the shadow of a past and present feudalistic Qing nightmarish scenario that is now quite visable in a faux`capitalist China today! All Chiang Kai-shek and Sun Yet-sen wanabees...

jmo

Do NOT follow this link or you will be banned from the site!