9mo ago

Evergrande: China property giant and its founder accused of $78bn fraud

www.bbc.com Evergrande: China property giant and its founder accused of $78bn fraud

Former billionaire Hui Ka Yan has been fined and faces being banned from the financial markets for life.

World News @lemmy.ml

www.bbc.com /news/business-68603195

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So how does China hold this man accountable without also holding themselves accountable?
Isn't it Chinese Communist policy that all businesses, especially a large one like Evergrande, has government personnel on the board of directors or equivelant?
Seems like if CCP had their hand in this cookie jar they should sanction themselves as well.
- I can see them holding individuals in the party accountable. Not those high up, but someone might take a fall.
  
  The guy getting charged was a high up member of the CPC.
  I kinda expected a harsher sentence than a fine, a ban from the party, and ban from ever doing business again given that the guy not only defrauded millions, but betrayed the public trust.
  
  I do remember some guy embezzling funds from a rail bridge construction in China, causing a derailment that injured some people, being executed.
  To be honest, if there needs to be a death penalty, it should be reserved for those cases. A single murder is reprehensible, but it is easy to get the wrong guy. If you do shit like management in Boeing, I wouldn't say it's unreasonable to execute the decision maker whose corrupt decision caused a plane to crash and hundreds of people to die.
  
  Basically, good luck expecting Winnie the Pooh to doxx himself.
- Xi will either blame predecessors or the CIA. Whatever the case the lesson "learned" from this will be more government control and things will spiral down further.
- Hui Ka Yan is a party member.
  In 2008, Hui became a member of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the top political advisory body in China. He was promoted to CPPCC National Committee's Standing Committee in 2013, and actively participated in the conventions since then. He attended the 100th anniversary of the Chinese Communist Party in 2021. In November 2022, he skipped a Standing Committee meeting due to the crisis at Evergrande, and was told not to attend the annual meeting of the CPPCC in March 2023.
- Once of the hallmarks of Xi's China is the lack of political penetration into big business. They are still there but passive and removed from most of the business. This was a few executives with a massive ego for their ability to finance and build shit, except they didn't know how to finance and build shit - so it was a bunch of new guys proud that they could do their job. When shit hit the fan, no one knew how to do basic business like pay back loans or not borrow more money. China really only participated by giving money to someone they thought knew what they were doing.
  
  China does force large corporations to have party members as board members. Except that these party members might not know enough of business and finance to materially influence anything. Plus, when things are going well, why spoil the feast by bringing up risks and required controls? Better ride the wave and try to get promoted for business leadership excellence!
- That's really backwards thinking, but I'm sure you think you have a point.

27 comments