Seen incidentally. After twelve years in prison, Zhang Wenzhong, the ex-boss of Wumart, a chinese giant of the large-scale distribution, has seen the supreme Court chinese invalidate, on 31 may, the fraud conviction he received in 2009 for having received subsidies only for public companies.
The law had already changed when his company applied for such payments, making it legitimate for a private company to be a beneficiary, but the different courts that have considered his case on appeal had not taken into account. It must be said that the arrest of Zhang Wenzhong had been explicitly linked to the collapse of a vice-mayor of Beijing. However, the own logic of the purges policies in the name of anti-corruption is rarely concerned with legal coherence.
This release surprise offers without doubt a sorry comfort to Wu Xiaohui, the ex-boss of the insurer Anbang and owner of the Waldorf Astoria hotel, in New York. His lawyer revealed on may 30 that he had appealed his sentence to eighteen years in prison for fraud. Mr. Wu is part of a long list of ” big crocodiles “, these oligarchs to chinese in the meteoric rise and connections as efficient as mysterious, held in recent months in the context of a vast operation of financial consolidation.
The objective of weakening it, by the constraint of their empire in order to neutralize a part of the debts which cripple the chinese economy, while the bond market is experiencing heavy turbulence : a half-dozen chinese companies listed in the stock Exchange have failed to fulfil their commitments relating to the equivalent of 2.1 billion euros of debt obligations since the beginning of the year – some of which are denominated in dollars. Gold, the equivalent of close to eur 2 500 billion matures in the next twelve months.
The “big crocodiles” also account for the power in place a risk…