China has announced it is investigating several executives at state-owned real estate companies over allegations of “grave breaches of discipline and the law.”
The probes are another blow to a key sector already struggling with declining sales, angry customers, and heavily indebted developers.
Authorities said in separate notices on Tuesday that they are investigating Zhuang Yuekai, chairman of C&D Real Estate, and Shi Zhen, chairman of C&D Urban Services.
They are also investigating Liu Hui, deputy general manager of Shenzhen Talents Housing Group, and Tang Yong, a former chairman of China Resources Land.
All four were “suspected on suspicion of serious breaches of discipline and the law,” the release said, which contained few details.
However, the language used in the announcements typically hints at upcoming graft charges.
These investigations could “deal another blow to investor confidence and raise market concerns about the internal governance of some state-owned companies,” ANZ’s Ting Meng told Bloomberg News.
The investigation comes ahead of the ruling Communist Party’s 20th National Congress, which is widely expected to anoint President Xi Jinping for an unprecedented third term.
Xi has championed an anti-corruption campaign since taking office, bringing down notable critics, and observers expect he will use the months leading up to the meeting to consolidate his power.
The investigations follow a regulatory crackdown on some of China’s biggest tech companies.
Authorities have also announced investigations into semiconductor industry figures in recent months, including Industry and Information Technology Minister Xiao Yaqing.
Regulators, insurance giants, security officials and financiers have faced censure or prosecution as part of the anti-corruption campaign, but it’s rare for a minister to be targeted while in office.
The vast majority of those investigated for corruption in China were eventually convicted.
#China #probes #executives #state #real #estate #firms #violations
