Share on facebook
Share on twitter
Share on telegram
Share on whatsapp
Share on linkedin
Share on print
Share on email

China’s ‘Warren Buffett’ May Be Caught up in Anti-corruption Drive

◎ The CCP declared open season on financial sector corruption after the 19th Party Congress.

Guo Guangchang, a Chinese tycoon known as “China’s Warren Buffett,” stepped down as chairman at Shanghai Fosun High Technology on Nov. 10. Shanghai Fosun High Technology is the leading firm in Fosun International.

Guo, a co-founder of Fosun International, left three executive positions in the Fosun group within the past three months. He is still a chairman of Fosun International.

The backdrop: Founded in 1992, Fosun International is one of China’s largest investment groups. Co-founder Guo Guangchang is a member of the 12th Chinese People’s Political Consultative Conference.

After the 2015 China financial crisis, Guo went missing for several months. He was either taken away to assist in corruption investigations or was himself being probed, according to reports from the overseas Chinese press. Fosun announced that Guo was taking a “short break” from his duties.

This June, Chinese banking regulators ordered banks to conduct financial checks on Fosun, Wanda Group, and other big Chinese companies. Shortly after, three mainland banks stopped issuing new loans to Fosun, and the stocks of Fosun and its associated companies took a tumble.

Chinese conglomerates like Fosun and Wanda made headlines in recent years for making debt-fueled overseas acquisitions and transferring assets abroad. After these companies were targeted by the Chinese authorities, they quickly sold off their assets to repay their debts and mitigate their political risks. Wanda’s Wang Jianlin and Fosun’s Guo Guangchang even started actively participating in Beijing’s poverty alleviation efforts to build up their political capital and avoid being pursued by the authorities.

Our take:

1. The Chinese Communist Party declared open season on financial sector corruption after the 19th Party Congress. Several “big crocodiles,” or Chinese billionaires who partake in shady economic activity, were targeted earlier this year. Guo Guangchang could be next.

2. Guo has close ties with former Shanghai deputy mayor Ai Baojun, former Bright Food Group Co. chairman Wang Zongnan, former Zexi Investment general manager Xu Xiang, three “big crocodiles” who were arrested on corruptions. The purged financiers are in turn closely linked with Jiang Zemin, Jiang Mianheng, and Zeng Qinghong—three leading members of Jiang Zemin’s political faction.

Search past entries by date
“The breadth of SinoInsider’s insights—from economics through the military to governance, all underpinned by unparalleled reporting on the people in charge—is stunning. In my over fifty years of in-depth reading on the PRC, unclassified and classified, SinoInsider is in a class all by itself.”
James Newman, Former U.S. Navy cryptologist
“Unique insights are available frequently from the reports of Sinoinsider.”
Michael Pillsbury, Senior Fellow for China Strategy, The Heritage Foundation
“Thank you for your information and analysis. Very useful.”
Prof. Ravni Thakur, University of Delhi, India
“SinoInsider’s research has helped me with investing in or getting out of Chinese companies.”
Charles Nelson, Managing Director, Murdock Capital Partners
“I value SinoInsider because of its always brilliant articles touching on, to name just a few, CCP history, current trends, and factional politics. Its concise and incisive analysis — absent the cliches that dominate China policy discussions in DC and U.S. corporate boardrooms — also represents a major contribution to the history of our era by clearly defining the threat the CCP poses to American peace and prosperity and global stability. I am grateful to SinoInsider — long may it thrive!”
Lee Smith, Author and journalist
“Your publication insights tremendously help us complete our regular analysis on in-depth issues of major importance. ”
Ms. Nicoleta Buracinschi, Embassy of Romania to the People’s Republic of China
"I’m a very happy, satisfied subscriber to your service and all the deep information it provides to increase our understanding. SinoInsider is profoundly helping to alter the public landscape when it comes to the PRC."
James Newman, Former U.S. Navy cryptologist
“Prof. Ming’s information about the Sino-U.S. trade war is invaluable for us in Taiwan’s technology industry. Our company basically acted on Prof. Ming’s predictions and enlarged our scale and enriched our product lines. That allowed us to deal capably with larger orders from China in 2019. ”
Mr. Chiu, Realtek R&D Center
“I am following China’s growing involvement in the Middle East, seeking to gain a better understanding of China itself and the impact of domestic constraints on its foreign policy. I have found SinoInsider quite helpful in expanding my knowledge and enriching my understanding of the issues at stake.”
Ehud Yaari, Lafer International Fellow, The Washington Institute
“SinoInsider’s research on the CCP examines every detail in great depth and is a very valuable reference. Foreign researchers will find SinoInsider’s research helpful in understanding what is really going on with the CCP and China. ”
Baterdene, Researcher, The National Institute for Security Studies (Mongolian)
“The forecasts of Prof. Chu-cheng Ming and the SinoInsider team are an invaluable resource in guiding our news reporting direction and anticipating the next moves of the Chinese and Hong Kong governments.”
Chan Miu-ling, Radio Television Hong Kong China Team Deputy Leader
“SinoInsider always publishes interesting and provocative work on Chinese elite politics. It is very worthwhile to follow the work of SinoInsider to get their take on factional struggles in particular.”
Lee Jones, Reader in International Politics, Queen Mary University of London
“[SinoInsider has] been very useful in my class on American foreign policy because it contradicts the widely accepted argument that the U.S. should work cooperatively with China. And the whole point of the course is to expose students to conflicting approaches to contemporary major problems.”
Roy Licklider, Adjunct Professor of Political Science, Columbia University
“As a China-based journalist, SinoInsider is to me a very reliable source of information to understand deeply how the CCP works and learn more about the factional struggle and challenges that Xi Jinping may face. ”
Sebastien Ricci, AFP correspondent for China & Mongolia
“SinoInsider offers an interesting perspective on the Sino-U.S. trade war and North Korea. Their predictions are often accurate, which is definitely very helpful.”
Sebastien Ricci, AFP correspondent for China & Mongolia
“I have found SinoInsider to provide much greater depth and breadth of coverage with regard to developments in China. The subtlety of the descriptions of China's policy/political processes is absent from traditional media channels.”
John Lipsky, Peter G. Peterson Distinguished Scholar, Kissinger Center for Global Affairs
“My teaching at Cambridge and policy analysis for the UK audience have been informed by insights from your analyzes. ”
Dr Kun-Chin Lin, University Lecturer in Politics,
Deputy Director of the Centre for Geopolitics, Cambridge University
" SinoInsider's in-depth and nuanced analysis of Party dynamics is an excellent template to train future Sinologists with a clear understanding that what happens in the Party matters."
Stephen Nagy, Senior Associate Professor, International Christian University
“ I find Sinoinsider particularly helpful in instructing students about the complexities of Chinese politics and what elite competition means for the future of the US-China relationship.”
Howard Sanborn, Professor, Virginia Military Institute
“SinoInsider has been one of my most useful (and enjoyable) resources”
James Newman, Former U.S. Navy cryptologist
“Professor Ming and his team’s analyses of current affairs are very far-sighted and directionally accurate. In the present media environment where it is harder to distinguish between real and fake information, SinoInsider’s professional perspectives are much needed to make sense of a perilous and unpredictable world. ”
Liu Cheng-chuan, Professor Emeritus, National Chiayi University