Business leaders in China are under immense pressure, as the country’s leader Xi Jinping intensifies a regulatory crackdown on companies and strengthens its control of the economy. This year, more than a dozen top executives from sectors including technology, finance and real estate have gone missing, faced detention or been subjected to corruption probes. Even international consulting firms have been caught up in the sweep.
But Guthrie said this type of “aggressive corporate governance” was still going on and would continue into the future. “Beijing will use selective cases to send signals to the market that behaviours and practices that do not fit with the central government’s goals will not be tolerated,” he said. “The cases of DouYu and Shandong Wohua are very clearly part of this continuing trend.” Other top business leaders have also been facing scrutiny.
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