Mystery surrounds the whereabouts of a Chinese-born Canadian billionaire reportedly taken away from his Hong Kong hotel by Chinese police, in a case that could rekindle concerns about overreach by Chinese law enforcement in the territory.
Xiao Jianhua (肖建華) is in mainland China, according to a report yesterday by Hong Kong’s South China Morning Post, citing an anonymous source close to the tycoon.
Overseas Chinese news sites said earlier that Chinese police officers escorted Xiao from his suite at the luxury Four Seasons Hotel on Friday last week.
Such news sites carry reports of political gossip and corruption scandals that can be difficult to verify in tightly controlled China.
Xiao founded the Beijing-based Tomorrow Group, a well-connected financial services company, and is worth nearly US$6 billion, according to the Hurun Report, China’s version of the Forbes Rich List.
It is unclear why Xiao was targeted, but his case has parallels with that of five Hong Kong booksellers, who disappeared in 2015 only to turn up under control of Chinese authorities, sparking fears that Beijing was eroding Hong Kong’s wide autonomy and rule of law.
The Chinese Ministry of Public Security and Ministry of Foreign Affairs did not respond to requests for comment yesterday, a public holiday in China.
Chinese law enforcement agencies are not authorized to enforce the law in Hong Kong, the territory’s security bureau said.
The Hong Kong police department said it that has asked Chinese authorities for assistance in following up on Xiao’s case.
In response to an inquiry about Xiao, Hong Kong police said initial investigations showed the “subject” crossed into the mainland at a border checkpoint on Friday.
They had launched the investigation after receiving a request for assistance from a family member on Saturday, but a day later the relative asked to withdraw the report after getting word that Xiao was safe.
Xiao is reported to have built his fortune in part because of close connections with the families of Chinese Communist Party leaders.
In 2014, reports said he fled to Hong Kong following rumors he was the target of a graft investigation — reports he denied at the time.
Chinese state media said in 2013 that Xiao controlled nine publicly listed companies and had stakes in more than 30 financial institutions.
The New York Times reported in 2014 that a company Xiao cofounded paid US$2.4 million to buy shares in an investment firm held by Chinese President Xi Jinping’s (習近平) sister and brother-in-law.
Hong Kong’s Ming Pao newspaper carried a front-page ad purportedly from Xiao, which said he was out of the country for medical treatment and denied he had been kidnapped.
It followed similar statements the company posted this week on its Weibo account, which have since been deleted.
Xiao is a Canadian citizen and a Hong Kong permanent resident, and had an unspecified diplomatic passport, the ad said.
The ad cited Xiao as saying he was a patriotic businessman who “has always loved the party and the nation, and has never participated in anything that would hurt the country’s interests or the government’s image, let alone support any opposition forces or groups.”
The Canadian Consulate said that it was aware of the reports and had contacted authorities “to gather additional information and provide assistance.”
In the wake of the booksellers’ incident, Xiao’s disappearance is likely to further degrade the perception that Hong Kong has an independent judiciary that operates outside of the political system, Hong Kong-based lawyer Jean-Francois Harvey said.
“People will be questioning whether Hong Kong is a safe haven,” Harvey said. “I think the answer to that question is very, very clear now, sadly.”
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