National Post (National Edition)

Missing billionair­e stokes fears of meddling

CANADIAN’S CASE RAISES QUESTIONS ABOUT BEIJING POLICE INFLUENCE IN HONG KONG

- DAVID TWEED AND CATHY CHAN in Hong Kong Bloomberg News

Where is Chinese-born Canadian businessma­n billionair­e Xiao Jianhua? That depends on whom you ask, and the answer may further inflame Hong Kongers worried that China is increasing­ly meddling in the city’s affairs.

Xiao, a student leader at the time of 1989 pro-democracy protests in China who now runs the Tomorrow Group investment conglomera­te, hasn’t been seen around Hong Kong since last week. He’s a longtime resident of the luxury Four Seasons Hotel fronting Victoria Harbour.

The South China Morning Post reported that Xiao left the hotel Friday accompanie­d by a group of unknown people. He then crossed into mainland China, where he remains, the paper reported Wednesday, citing sources it didn’t identify. Xiao can communicat­e with his family, one person told the paper, which didn’t say why he was in China. Hong Kong police, when asked about Xiao, said “the subject” entered China on Jan. 27 but didn’t explain.

The New York Times also reported that Xiao was taken by Chinese police and brought back to the mainland where he was in custody. The paper, which didn’t say why Xiao was detained, cited a person close to the businessma­n whom it didn’t identify.

Yet Xiao, or someone claiming to be him, tells a different story. On Tuesday, amid speculatio­n about his whereabout­s and circumstan­ces, he posted an ad on the website of Hong Kong’s Chineselan­guage Ming Pao newspaper saying he’s “recuperati­ng abroad” and hadn’t been “abducted.”

“The Chinese government is a civilized government ruling according to law,” the ad said. “Everyone don’t misinterpr­et. There’s no such thing as me being abducted back to mainland China.”

The Canadian citizen also said in the ad that he’s protected by both Canada’s embassy and by Hong Kong law because he’s a permanent resident of the city.

As of Wednesday, Xiao remained outside China, according to a subordinat­e in contact with him daily. That person, who asked not to be identified because the discussion­s are private, declined to be more specific.

The Canadian consulate in Hong Kong declined Wednesday to confirm whether Xiao is a Canadian citizen, citing privacy issues. Consulate officials had been in touch with local authoritie­s for informatio­n following the media reports, said Cindy Tang, a spokeswoma­n.

A Hong Kong police statement released Tuesday about “a Mainland citizen in Hong Kong” didn’t name the person. Officers received a “request for police assistance” on Jan. 28, but a family member later said the person contacted relatives and was safe, so the report was withdrawn. The investigat­ion showed the person entered China from Hong Kong on Jan. 27, which is the day Xiao reportedly left the Four Seasons.

A spokeswoma­n for the Four Seasons Hotel, Priscilla Chan, declined to comment Wednesday.

The possibilit­y police from mainland China seized Xiao and took him across the border is a sensitive issue in Hong Kong, which is part of China but has a separate legal system. Hong Kong’s Basic Law — the mini-constituti­on drawn up in consultati­on with the British before the 1997 return to China — prohibits Chinese law enforcemen­t authoritie­s from operating independen­tly in the city.

Yet last year, five men — including U.K. and Swedish nationals — who sold books critical of China’s Communist Party went missing and later turned up with authoritie­s on the mainland. In a report to Parliament in February, 2016, thenforeig­n secretary Philip Hammond called the detentions a “serious breach” of the handover deal.

“This is a real concern,” Kevin Yam of the Hong Kong-based Progressiv­e Lawyers Group said Wednesday. “You have people entitled to be in Hong Kong who are being nabbed across the border. It goes right to the heart of ‘one country, two systems.’ ”

In 2014, thousands of protesters occupied areas of the city because of what they considered Beijing’s increasing control over Hong Kong politics.

The Hong Kong government said Wednesday that police were investigat­ing the case, and it expected the Basic Law to be followed. The government “will not allow non-Hong Kong law enforcemen­t officers to take law enforcemen­t actions in Hong Kong,” according to the statement.

The question of where Xiao is also prompts the question of why he’s the subject of political intrigue. In a 2014 interview with Hong Kong Next Magazine, Xiao said he was chairman of the Peking University student union in 1989, but he didn’t participat­e in the Tiananmen Square protests.

Xiao formerly ran a business unit affiliated with Thai billionair­e Dhanin Chearavano­nt’s Charoen Pokphand Group. He was chairman of Chia Tai Worldwide Investment Co. in the months before Dhanin completed his US$9.4-billion purchase of a stake in Ping An Insurance (Goup) Co. in 2013.

CP Group began investing in the insurer while Xiao still was Chia Tai chair. Chinese magazine Caixin reported in January, 2013, that China Developmen­t Bank Corp. pulled its funding of the deal after learning of Xiao’s involvemen­t. When the deal was consummate­d in February, 2013, Xiao no longer held the title of chairman.

The Hurun Report of China’s richest people says Xiao is part of a fortune estimated at almost US$6 billion.

 ?? NEXT MAGAZINE / THE ASSOCIATED PRESS FILES ?? Xiao Jianhua, a Chinese-born Canadian billionair­e, in 2013.
NEXT MAGAZINE / THE ASSOCIATED PRESS FILES Xiao Jianhua, a Chinese-born Canadian billionair­e, in 2013.

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