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| China Financier Defends Companies’ Deals | China Financier Defends Companies’ Deals |
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| SHANGHAI — A billionaire Chinese financier, responding to an article in The New York Times about deals that his companies made with the relatives of some of China’s senior leaders, said Wednesday that a company he co-founded was helping the family of China’s president, Xi Jinping, dispose of some of its assets last year when the company bought a stake that the family held in a state-backed investment firm. | |
| The statement, which was released by the Tomorrow Group, the holding company of the billionaire, Xiao Jianhua, was partly intended to dispute some elements of a profile by The Times on Wednesday of Mr. Xiao’s rise as a businessman after the Tiananmen Square demonstrations in 1989. | The statement, which was released by the Tomorrow Group, the holding company of the billionaire, Xiao Jianhua, was partly intended to dispute some elements of a profile by The Times on Wednesday of Mr. Xiao’s rise as a businessman after the Tiananmen Square demonstrations in 1989. |
| Through his spokeswoman, Mr. Xiao suggested that the president’s family was determined to sell its stake in the investment firm, and even suffer losses, in order to dispose of the asset after a June 2012 Bloomberg News report about the Xi family’s fortune. | Through his spokeswoman, Mr. Xiao suggested that the president’s family was determined to sell its stake in the investment firm, and even suffer losses, in order to dispose of the asset after a June 2012 Bloomberg News report about the Xi family’s fortune. |
| The sale, which took place in January 2013, is one of the earliest indications that the relatives of Mr. Xi had begun selling assets around the time he was ascending to the highest position of the Communist Party, and vowing a harsh crackdown on corruption that would take down “tigers and flies.” | The sale, which took place in January 2013, is one of the earliest indications that the relatives of Mr. Xi had begun selling assets around the time he was ascending to the highest position of the Communist Party, and vowing a harsh crackdown on corruption that would take down “tigers and flies.” |
| Although the extent of the Xi family asset sales is unclear, corporate records filed with the government show that during the past few years the president’s sister, Qi Qiaoqiao, and her husband, Deng Jiagui, have also sold stakes in several other companies in China. | Although the extent of the Xi family asset sales is unclear, corporate records filed with the government show that during the past few years the president’s sister, Qi Qiaoqiao, and her husband, Deng Jiagui, have also sold stakes in several other companies in China. |
| The statement that Mr. Xiao released Wednesday was an attempt to explain why Kanghai Tianda, a company he had co-founded, paid $2.4 million in January 2013 to buy the 50 percent stake that Mr. Xi’s sister and brother-in-law held in CCB International Yuanwei Fund Management, a joint venture with the international division of the state-run China Construction Bank. | The statement that Mr. Xiao released Wednesday was an attempt to explain why Kanghai Tianda, a company he had co-founded, paid $2.4 million in January 2013 to buy the 50 percent stake that Mr. Xi’s sister and brother-in-law held in CCB International Yuanwei Fund Management, a joint venture with the international division of the state-run China Construction Bank. |
| In the statement, the Tomorrow Group said that it no longer controlled Kanghai but that when the president’s relatives acquired their 50 percent stake in CCB International Yuanwei, there was nothing unusual about the deal. The Xi relatives acquired the stake using a company called Qinchuan Dadi. | In the statement, the Tomorrow Group said that it no longer controlled Kanghai but that when the president’s relatives acquired their 50 percent stake in CCB International Yuanwei, there was nothing unusual about the deal. The Xi relatives acquired the stake using a company called Qinchuan Dadi. |
| “Qinchuan Dadi shareholders did not take advantage of any government connections or family influence when they bought shares in the investment company in question,” the Tomorrow Group statement said. “It was a legitimate business transaction, and it was also legal when they made their exit.” | “Qinchuan Dadi shareholders did not take advantage of any government connections or family influence when they bought shares in the investment company in question,” the Tomorrow Group statement said. “It was a legitimate business transaction, and it was also legal when they made their exit.” |
| The statement also said that when the Xi family sold its stake for $2.4 million, it was the same price for which the family had acquired the stake several years earlier. | The statement also said that when the Xi family sold its stake for $2.4 million, it was the same price for which the family had acquired the stake several years earlier. |
| The family “voluntarily quit their legitimately operating business, bringing them a huge loss,” the statement read. “Thus the family didn’t make any extra profits on their family clout.” | The family “voluntarily quit their legitimately operating business, bringing them a huge loss,” the statement read. “Thus the family didn’t make any extra profits on their family clout.” |