Following the conclusion of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, Hu Xin, the vice president of Shanghai Urban Investment Group, has been ousted from his position due to corruption allegations. Analysts believe that the Hu Xin case may have implications for other executives of Shanghai Urban Investment and Greenland, particularly concerning the vested interests of the Jiang family, especially those of Jiang Zemin’s son Jiang Miankang.
On the night of July 23, Shanghai’s well-known real estate company, Greenland Holdings, issued a statement announcing that Hu Xin, vice chairman of Greenland Holdings, was under investigation.
Hu Xin’s downfall became a focal point for A-share market investors, leading to a 1.5% drop in Greenland’s stock price to 1.36 yuan (approximately $0.19).
Greenland Holdings emphasized Hu Xin’s status as an “outsider,” stating that he was appointed as an external director by shareholder units and did not participate in the company’s daily operations. They believe that his investigation will not have a significant impact on the company’s production and operation activities.
Shanghai Urban Investment (Group) Co., Ltd. (referred to as “Shanghai Urban Investment”) was one of Greenland Holdings’ original two major state-owned parent companies and also the third largest shareholder of Greenland. As of the end of the first quarter of this year, Shanghai Urban Investment held a 20.55% stake in Greenland Holdings.
Hu Xin was dispatched from Shanghai Urban Investment to Greenland Holdings, where he currently serves as a director, vice chairman, member of the Board’s Strategic Committee, and member of the Board’s Compensation and Assessment Committee. Hu Xin’s term at Greenland is from May 26, 2021, to February 16, 2025, during which he does not receive compensation from Greenland.
Public information shows that in June 2021, Hu Xin was appointed as the vice president of Shanghai Urban Investment. Born in February 1967, he holds a bachelor’s degree in engineering from a full-time university, an on-the-job master’s degree in engineering, the title of senior engineer, and joined the Communist Party in November 1997.
Starting as a clerk at the Shanghai Water Conservancy Engineering Design Research Institute, Hu Xin rose through the ranks to become the Chief Engineer of Water Engineering Design Institute, Director of the Second Design Institute, Deputy Dean, Deputy Chief Engineer of Shanghai Water Bureau, Director of Science and Technology Department, Director of Flood Control and Safety Supervision Department, Director of Shanghai Embankment (Pump Gate) Facility Management Department, Deputy Secretary of the Party Committee, Chief Engineer of Shanghai Water Bureau (City Ocean Bureau), and Chief Engineer of Shanghai Urban Investment (Group) Co., Ltd.
Greenland Group was once a prominent landowner in Shanghai, with its subsidiary Greenland Hong Kong listed on the Hong Kong stock exchange. During Han Zheng’s tenure as mayor of Shanghai, Greenland Group was a pilot project for the reform of state-owned enterprises in Shanghai and was considered one of Han Zheng’s key accomplishments. Greenland’s chairman Zhang Yuliang referred to Han Zheng as Greenland’s “patron.” Leveraging Han Zheng’s influence, Greenland almost monopolized the entire Shanghai market and was listed in the Fortune Global 500 for 12 consecutive years.
Fugitive billionaire Guo Wengui, who fled to the United States from Beijing, previously revealed that Han Zheng’s wife, Wan Ming, held a significant stake of 7% in Shanghai Greenland through a proxy. Han Zheng’s daughter has obtained Australian citizenship and is the actual controlling shareholder of Greenland Group’s Australian subsidiary.
Since its shell listing in 2015, the group has been embroiled in multiple debt default scandals, with sales declining since 2020. As of February 2021, Greenland Holdings’ debt exceeded trillion yuan, with a debt-to-asset ratio of 88%, leading to public debt disputes with several companies and migrant workers.
An article published by the official Chinese media, Beijing Daily, stated that Greenland Group had long been hollowed out by debts and was teetering on the brink of bankruptcy. The article used the case of a fallen high-level executive of Greenland as an example of the serious corruption within the company, describing its internal corruption as “beyond imagination.”
Afterwards, Hu Xin was sent to Greenland to serve as vice chairman, representing Shanghai Urban Investment in providing support and supervision to Greenland.
Despite the powerful backing, Greenland has managed to survive due to its strong political connections but still struggles within the real estate sector, edging towards bankruptcy.
In the first half of this year, the company’s sales decreased by 49.7% compared to the same period last year, with a projected net profit decline of over 90% and no new real estate projects in the pipeline. According to their financial report, as of the end of the first quarter of this year, the company’s total debt stood at 1.05 trillion yuan (approximately $140 billion), with a debt ratio of 88%.
Whether Hu Xin’s downfall will affect the management of Greenland remains uncertain for now.
According to the announcement from the Central Commission for Discipline Inspection and the Supervision Commission of the Communist Party of China on July 22, Hu Xin was only mentioned as the vice president of Shanghai Urban Investment. This indicates that his case is linked to the Shanghai construction system.
Shanghai Urban Investment is a massive state-owned enterprise group engaged in urban infrastructure investment, construction, and operation management, wholly owned by Shanghai State-owned Assets Supervision and Administration Commission.
Hu Xin used to be subordinate to Bai Tinghui, the secretary and director of Shanghai State-owned Assets Supervision and Administration Commission who was ousted in September last year. When Bai Tinghui served as the Director of the Shanghai Water Bureau, Hu Xin was the Chief Engineer of the Water Bureau. From 2017 to 2019, they both served as members of the Party Committee of the Water Bureau (Ocean Bureau), indicating a close working relationship.
Bai Tinghui, a native official of Shanghai, had previously held positions such as Deputy Chief Engineer of Shanghai Metro General Company, General Manager of Shanghai Urban Rail Transit Construction Co., Ltd., Deputy General Manager, and Chief Engineer of Shanghai Metro Construction Co., Ltd.
Political commentator Li Yanming told Epoch Times that during Jiang Zemin’s over two-decade rule, his son, Jiang Miankang, controlled Shanghai’s transportation and urban construction system. Bai Tinghui’s downfall is linked to the corruption within the Shanghai transportation and urban construction system and cannot escape connections to Jiang Miankang’s corrupt practices.
Jiang Miankang had previously served as an inspector at the Shanghai Municipal Commission of Urban and Rural Construction and Transportation Management, as well as the director of the Shanghai Urban Development Information Research Center, overseeing the city’s land, relocation, planning, and overall coordination work.
Shanghai lawyer Zheng Enchong previously told Epoch Times that although the inspector position is not an official title, it holds significant authority. Jiang Miankang, due to his special background, wielded powers equivalent to that of the director of the Construction Commission through his role. Relying on the Shanghai Construction and Transportation Committee, Jiang Miankang established various institutions, research centers, enterprises, associations, publications, and exploited a large number of benefits.
Former Chairman of Shanghai Real Estate Holdings, Zhou Zhengyi, once acquired the “East Eight Blocks” of land to engage in speculative activities in Hong Kong. According to sources in Shanghai, Zhou Zhengyi actually controlled two blocks of land, while the other six were given to high-ranking family members of the Jiang faction, including Jiang’s brothers.
In 2007, Zheng Enchong disclosed to the media that both of Jiang Zemin’s sons were involved in Zhou Zhengyi’s land appropriation and loan sharking case. The land in Shanghai’s Jing’an District, known as the Eastern Eight Blocks, was obtained by Jiang’s eldest son, Jiang Mianheng, through Shanghai Lianhe Investment Company, while the other block was acquired by Jiang’s second son, Jiang Miankang, through the Shanghai Housing and Urban Construction Commission.
Both Shanghai Real Estate Holdings and Shanghai Urban Investment are state-owned parent companies of Greenland Holdings. Shanghai Real Estate Holdings has always been the second-largest shareholder of Greenland Holdings.
Jiang Miankang not only controls the real estate blocks in Shanghai but also extends his reach to prime land in the surrounding areas.
In 2015, the “Big Corrupt Official,” Yang Xiuzhu, who fled to the United States, stated in an interview with the media that when she was the Deputy Mayor in charge of urban construction in Wenzhou, she was approached by Jiang Zemin’s son Jiang Miankang, who asked for 500 acres of land, a request she repeatedly rejected as it violated regulations. Subsequently, she was investigated under the charge of corruption with the main reason being that she had offended Jiang Zemin.
Even after retiring, Shanghai Urban Construction continues to be a domain of interest for Jiang Miankang.
On July 20, 2018, Shanghai Urban Investment established the Advisory Committee of the Science and Technology Committee. Jiang Miankang was one of the first batch of special consultants and experts appointed by the Urban Investment Group. In this capacity, he continues to exert influence.
On January 11, 2021, Shanghai Urban Investment held the “Three-Year Action Plan for Digital Urban Investment” summary meeting and the release of “One-Screen Urban Investment (1.0 Edition)” launch event. Jiang Miankang was the only consultant invited to the meeting.
Li Yanming analyzed that the corruption case of Hu Xin is likely to implicate management executives of Shanghai Urban Investment and Greenland. These two entities are crucial territories where officials and businessmen collude within the real estate system. The Xi regime is expected to further dig in and clean up the core areas of Jiang’s family and the Jiang faction’s interests.