China sentences tycoon Xiao Jianhua to 13 years, fines his company $8.1 billion

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UPDATED. Xiao and Tomorrow Holdings have 'severely violated a financial management order' and 'hurt state financial security,' the Shanghai First Intermediate Court says.

BEIJING, China – A Shanghai court on Friday, August 19, sentenced Chinese-Canadian billionaire Xiao Jianhua,, to 13 years in jail and fined his Tomorrow Holdings conglomerate 55.03 billion yuan , a record in China.

China-born Xiao, known to have links to China’s Communist Party elite, was last seen whisked away in a wheelchair from a luxuryhotel in the early hours with his head covered, a source close to the tycoon told Reuters at the time. In July 2020, nine of the group’s related institutions were seized by Chinese regulators as part of a crackdown on risks posed by financial conglomerates.

It said Xiao used the illegal gains for the acquisition of financial institutions, securities trading and overseas investment. But it acknowledged his attempts to make amends.

 

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