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Keeping Up With the Purges
China’s Disappearing Billionaires

Another billionaire has gone missing in China, the second in the past few weeks. Zhou Chengjian, the head of the Chinese fashion chain Metersbonwe, disappeared yesterday, the BBC reports:

A company statement said it could reach neither the chairman nor his secretary. Metersbonwe also halted trading of its shares “to protect investors’ interests”.

His disappearance comes only weeks after Guo Guangchang, chairman of private sector conglomerate Fosun, temporarily went missing […]

Chinese media reports on links between the disappearance of businessmen and the authorities sweeping anti-corruption campaign remain unconfirmed.

Assuming Beijing does have something to do with them (likely a safe assumption), these disappearances mark an emerging trend in President Xi Jinping’s anti-corruption drive: more attention on China’s private sector. Even in a weak economy, Xi appears to be moving full steam ahead with the potentially destabilizing purges.

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  • Kevin

    I’m sure this will perk up the Chinese stock market…

  • Jacksonian_Libertarian

    They are getting out of China, and taking as much as they can with them. The smart money recognizes that China is going to fall hard. Foreign currency is pouring out of China at an accelerating rate ($1 Trillion per year), and this over reversal of the foreign investment that built the Chinese Economic Miracle, is pushing Chinese growth deep into the negative. As the foreign investors leave, they take their export markets with them, and will just have their products made somewhere else, in newer more updated and efficient factories. This leaves China without a single world class brand name like Sony, Samsung, Toyota, Kia, Intel, Microsoft, Apple, Google, Amazon, etc… to show for 40 years of development. The Chinese Government is claiming a growth rate of 7%, but that’s just ludicrous when electricity generation and raw material and energy imports are down 20%-40%. The empty buildings and cities argue that the amount of wasted development in China is HUGE. And remember at least 1/2 of the Chinese Economy is made up of Business Monopolies owned by the Government Monopoly.

  • ljgude

    Disappearing or disappeared? Ah, the mysterious East. As Charlie Chan might say. “Chinese billionaire very tricky fellow. Now you see him, now you don’t.” Apologies for the cultural appropriation.

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