Private Equities of CCP Princelings

Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews In China, private equity funds are special phenomenon. These hundreds of billions of dollars of assets are controlled by the so-called CCP (Chinese Communist Party) princelings. However, in the opaque authoritarian system in China, descendants of these CCP officials lack the legitimacy of a democratic society. Therefore, their socio-economic impact to China is worrying. Private Equity refers to the unlisted equity or non-publicly traded equity of a listed company. As private equity is high risk, when there is inadequate disclosure of information, it often takes place in the form of non-public offering. According to the Qingke Research Center, a total of 70 private equities in China were completed in the first half of this year. 64 private equities had the amount disclosed, totaling 6.2 Billion U.S. dollars. In recent years, China's so-called princelings have entered the financial sector successively. They have established a number of private equity funds. Jiang Zhicheng, who is a partner of the Bo Yu Investment Adviser, is the grandson of former Chinese Communist Party (CCP) leader Jiang Zemin. It has been learned that Bo Yu Investment planed to raise US $ 1.5 Billion of investment funds in 2013. Wu Shaohua, son of Wu Guanzheng, former secretary of the Central Discipline Inspection, has various identities. Wu is Executive Director and Vice President of China Everbright (Group) Corporation, he is a CCP committee member, president and CCP secretary of Everbright Financial Holding Asset Management Company. Aerospace Industry Investment Fund was established in January 2010. The company's general manager is Ma Yue, daughter of Ma Kai. Ma Kai is a member of the Politburo, and also vice general manager. They hold a total fund size of 5 Billion Yuan. In addition, Li Zhenfu, son of the CCP veteran Li Ruihuan, is the founder of GL Capital Group. Wilson Feng, son-in-law of Wu Bangguo, former member of the CCP Standing Committee, is currently the president of Guangdong Nuclear Investment. This is a state-owned industrial investment fund, with total assets of 10 Billion Yuan, He is also Director of the Shanghai Brilliance Group. Li Tong is the daughter of Li Changchun, a member of Politburo Standing Committee. She is a CEO of BOC International Holdings Limited, and is in charge of a private equity fund under Bank of China International in Hong Kong. Jeffrey Zeng, is the son of Zeng Peiyan, former Vice Premier and founder of Kaixin Investment Management Co., Ltd. He has funds belonging to state-owned financial institutions, a venture capital management company co-founded by National Development Bank, as well as CITIC Capital. He has served as general manager and managing partner. Liu Lefei, is the son of Liu Yunshan, a current Politburo Standing Committee member. He once served as a chief investment officer of state-owned enterprise China Life Insurance. He managed 1 Trillion Yuan of funds. He later served as Chairman and CEO for Citic Private Equity Funds Management. He is now is the CCP Secretary and Vice Chairman of CITIC Securities. Jiang Mianheng is the eldest son of Jiang Zemin. He controlled Shanghai Alliance Investment. Levin Zhu, is the son of Zhu Rongji, and is now the president and CEO of CICC. Zhu Rongji's daughter Zhu Yanlai is General Manager of Development Department (Hong Kong) of Bank of China. Professor Xie Tian, School of Business in University of South Carolina- Aiken: "(Princelings) not only account for a big proportion the financial sector. They also have predominant positions in politics and the military. If you do not have a princeling relationship in the military, you cannot have a position above division level commander. Politics, economics, military, finances and large enterprises, are all occupied (by princelings)". Radio France Internationale, highlighted the consequence of lack of constraints on princelings power in China. Princelings in the financial industry enjoy faster promotion, more convenience in getting approvals, greater return on investment, and even benefits exchange and transfers. Xie Tian: "So basically, how they work, how much money they raise and earn, how they avoid taxes, how they transfer money, they can do whatever they want. For Chinese people, they can only see state-owned assets transferred to the hands of princelings" He Junqiao, Enterprises Observer in China: "I think it has been a large impediment to China's political reform, and even economic reform. This is because they can so easily form unbreakable interest groups." Are there oversight mechanisms for private equity funds in China? He Junqiao, who once worked in SOE management said that in a country where even the constitution is unable to be implemented, how could financial supervision work? 《神韵》2013世界巡演新亮点 http://www.ShenYunPerformingArts.org/