The Wall Street Journal (WSJ) reported on the 9th (local time) that Chinese corporate executives have recently lost contact and disappeared, giving the industry a chill.
According to reports, Chen Xiaojie, CEO of Douyu, a live streaming company in China, a Nasdaq-listed company, has been out of touch since last month. Douyu did not announce CEO Chen’s future, only saying, “The business operation is maintained normally.”
Although his future has not been confirmed, his disappearance has occurred since Chinese regulators began investigating Douyu, according to the WSJ. Earlier, China said it has begun investigating the company in relation to regulations on content such as pornography on Internet streaming platforms.
Zhao Bingxian, chairman of Wohwa Pharmaceutical, listed on the Shenzhen Stock Exchange in China, was confirmed to have been detained by authorities after losing contact. In a recent disclosure, the company said Zhao was detained by authorities and asked to cooperate with the investigation.
In September, it was belatedly known that Xu Jain, founder of Chinese real estate developer Evergrande, was detained and investigated.
In February, Chinese financial giant Bao Pan, chairman of China Renaissance, disappeared and has not appeared in public. At that time, he did not go to work because his means of contact, such as mobile phones and social networking services, were cut off. WSJ reported that he was apparently detained due to the Chinese government’s anti-corruption investigation.
The WSJ said, “The Chinese business community is in a state of cold wave due to the disappearance of businessmen and the strengthening of crackdowns,” adding, “This is contributing to an unusual outflow of funds.”
Chen Zhiwu, a professor at the University of Hong Kong, said, “Many in the business world have now learned a lesson and some are no longer willing to invest in new businesses. Without substantial institutional reforms toward the rule of law, a significant economic recovery will be difficult to take place or maintain,” he said.
EJ SONG
US ASIA JOURNAL
