China jails billionaire Xiao Jianhua for 13 years

A Chinese billionaire abducted from a Hong Kong hotel in 2017 was jailed for 13 years and his company fined a record £6.8bn by a Shanghai court on Friday.

Xiao Jianhua has not been seen in public since he was kidnapped from Four Seasons hotel in a wheelchair by plainclothes Chinese agents, who were not allowed to operate in Hong Kong at the time.

It is thought the tycoon, whose head was covered when he was whisked away in the early hours, was taken to China by boat to avoid immigration checks.

His disappearance shook Hong Kong at a time when Beijing was exerting more influence and came two years after five Hong Kong booksellers disappeared before resurfacing in mainland China.

One of China’s richest people, the tycoon reportedly had close ties with the higher ranks of the ruling Communist party, including President Xi Jinping's family, but fell victim to a crackdown on conglomerate companies.

Xiao and his company, Tomorrow Holdings, were charged with illegally siphoning away public deposits, betraying the use of entrusted property, and the illegal use of funds and bribery, the Shanghai First Intermediate Court said.

Record fine for Xiao's company

As well as the company’s fine, a record in China, Xiao was personally fined just under £808,000. In 2016, it was estimated his net worth was an estimated £4.7bn.

In July, the Canadian embassy said it has been denied access to the trial. China’s foreign ministry said on Friday that Beijing did not recognise dual citizenship so Xiao was not entitled to such privileges.

His business empire was broken up by Chinese regulators in the years since he disappeared. In 2020, nine parts of the group were seized as part of a crackdown on the financial risk posed by conglomerates.

State-owned investment firm China Chengtong Holdings Group said it would acquire a majority stake in a securities firm linked to Tomorrow Group a few months later.

News of Xiao was scarce until last month when he was finally put on trial more than five years after his disappearance.

President Xi Jinping appears certain to be re-elected as the Chinese Communist Party’s secretary general for an unprecedented third term at the end of this year.

A court in Hong Kong on Friday jailed nine protestors for up to four years and four months after they were convicted of rioting against the extradition bill in a main shopping district.