One of China's richest men with connections into the top echelon of politics has been nabbed by Chinese agents. The move will stoke fears among China's wealthy class over the government cracking down on graft.
Xiao Jianhua, head of Tomorrow Group which holds stakes in banks, insurers and real estate developers in China, was abducted by up to six plain-clothed Chinese public security agents the night before Chinese New Year, the «Financial Times» (behind paywall) reported, quoting two sources.
He was removed from the Four Seaons luxury hotel, where he had resided and been protected by a cadre of female bodyguard, and taken to the Chinese mainland.
Xiao is worth roughly $6 billion according to the Hurun Report and has deep ties to the family of Chinese leader Xi Jingping. He is one of several Chinese businessmen who live in serviced luxury apartments in Hong Kong, out of the legal purview of Chinese law enforcement.
Graft Crackdown
Xiao's arrest comes nearly two years after five booksellers who were critical of China's leaders were arrested in Hong Kong. The move will raise fears among the wealthy in China, where the government has been getting tough on corruption.
It isn't clear why Xiao was taken, and confusion over his whereabouts was widespread. A source told the «FT» that Xiao had called his family and asked them to withdraw a request for assistance from Hong Kong police.
Deleted WeChat Post
WeChat post from the Xiao-controlled Tomorrow Group said the tycoon was overseas for medical treatment, and would return «soon». The statement was later deleted by Chinese censors.
Xiao is Chinese and holds Canadian citizenship, and a diplomatic passport from Antigua and Barbuda.
Residential rooms at the Four Seasons in Hong Kong, where Xiao was apparently taken from, cost up to $26,000 a month. Chinese tycoons are known to rent an entire floor in an attempt to safeguard their privacy.
