Xiao and Tomorrow Holdings were charged with illegally withdrawing public deposits, betraying the use of entrusted property, and illegal use of funds and bribery, the Shanghai First Intermediate Court said. He added that the sentence was reduced because both had admitted their crimes and cooperated in recovering ill-gotten gains and repairing damages. A Chinese court has sentenced billionaire Xiao Jianhua to 13 years in prison. AP Chinese-born Xiao, known to have ties to China’s Communist Party elite, was last seen leaving a luxury hotel in Hong Kong in a wheelchair in the early hours of the morning with his head covered, he told Reuters at the time. source from the tycoon’s environment. Xiao and Tomorrow “seriously violated a financial management order” and “hurt the financial security of the state”, the court said, with the tycoon fined an additional 6.5 million yuan for the crimes. From 2001 to 2021, Xiao and Tomorrow gave shares, real estate, cash and other assets to government officials totaling more than 680 million yuan to evade financial supervision and seek illegal benefits, the court said. In July 2020, nine of the group’s affiliated institutions were seized by Chinese regulators as part of a crackdown on the risks posed by financial conglomerates. Among the nine companies were four insurers – Tianan Property Insurance Co of China, Huaxia Life Insurance Co, Tianan Life Insurance Co and Yi’an P&C Insurance Co – as well as New Times Trust Co and New China Trust Co. The other three were Chengtong Securities, Guosheng Securities and Guosheng Futures. The court said that since 2004, Xiao and Tomorrow controlled several financial institutions and Internet financial platforms, including the failed Baoshang Bank, through multiple layers of indirect shareholders and anonymous ownership. He said Xiao used the illegal profits to acquire financial institutions, trade securities and invest abroad. But he acknowledged his efforts to make amends. “Xiao Jianhua has taken commendable actions, so he was given a lenient punishment according to the law,” it said. Asked about Xiao’s right to consular access as a Canadian citizen at a briefing Friday, Chinese Foreign Ministry spokesman Wang Wenbin said Xiao is not entitled to such rights as Chinese law does not recognize dual citizenship. Canada’s foreign affairs ministry said it was aware of media reports about the conviction and that its officials would monitor the case and push for consular access. “The lack of transparency in Mr. Xiao’s legal process is deeply troubling, as is the continued lack of consular access, which prevents us from assessing his welfare,” it said in a statement. Tomorrow Holdings could not immediately be reached for comment.
