Chinese billionaire abducted in luxury Hotel in Hong Kong

8 years ago - Published in Finance, Fundamental Analysis

Mystery surrounds the whereabouts of Xiao Jianhua, one of China's richest men, reportedly taken away from the Four Seasons Hotel in Hong Kong by Chinese police and put into custody in on the mainland, according to media reports.

Mr Xiao is the founder of Beijing-based Tomorrow Group, a well-connected financial services company, and is worth nearly $6 billion ($4.75 billion), according to the Hurun Report, China's version of the Forbes Rich List.

It's unclear why Mr Xiao has been targeted. China's ministry of public security and foreign ministry did not respond to requests for comment on Wednesday, a public holiday in China. The Financial Times (FT) said Xiao normally keeps an entourage of female bodyguards but was led away without a scuffle. 

Chinese news portal Cankao Xiaoxi, published by the official Xinhua news agency, cited Xiao’s Beijing-based Tomorrow Group as saying in a statement on its verified WeChat account that the billionaire had “not been abducted” and had not been taken to mainland China. It added he was “currently abroad being medically treated.”

The statement, dated Tuesday, was no longer available on the WeChat account when Reuters tried to verify it.

Mr Xiao is reported to have built his fortune in part because of close connections with the families of Communist Party leaders. In 2014, reports said he fled China to live in Hong Kong following rumors that he was the target of a graft investigation – reports he denied at the time.

He was one of a number of Chinese tycoons who had moved to Hong Kong and taken up residence in private apartments at the 5-star Four Seasons hotel during Xi's crackdown on corporate excess, the FT said.

Mr Xiao is a Canadian citizen and a Hong Kong permanent resident. The Canadian Consulate said it was aware of the reports and officials were "in contact with the authorities to gather additional information and provide assistance."
"In order to protect the privacy of the individual concerned, further details on this case cannot be released."