[ad_1]
An investment company founded by the son of China’s most powerful financial official has invested heavily in technology companies, including units of China’s leading internet groups Tencent and JD.com.
Liu Tianran, son of Vice Premier Liu He, was listed as chairman of Tianyi Ziteng Asset Management, also known as Skycus Capital, when the firm was established in Zhejiang Province in late 2016, according to corporate records seen by Financial Times. Ten people, five of whom have worked with Liu Tianran, confirmed that he was Liu He’s son.
According to corporate records, Liu Tianran resigned as president of Skycus in April 2017, six months before his father was promoted to the 25-member Chinese Communist Party political bureau. A year later, he also transferred his shares in Skycus to another executive, shortly after his father was appointed deputy prime minister with responsibility for the financial sector.
Liu had previously been a low-profile figure who, however, exercised huge influence as President Xi Jinping’s most trusted adviser on financial and economic matters. His rise confirmed his place among the Chinese political elite.
According to Chinese government regulations, children of senior executives are prohibited from running companies in industries regulated by a parent company, but may be employed by these companies with lower positions or advisory roles.
Several people close to Skycus’ operations told FT that Liu Tianran, who also uses the English name Andy, continued to work on agreements for the firm after retiring as chairman and transferring his shares. They added that he played a central role in the lucrative operations involving Tencent and JD.com units.
Since its inception five years ago, Skycus has grown rapidly, quickly establishing itself as an aggressive distributor and accumulating more than $ 10 billion ($ 1.6 billion) in managed assets, according to corporate records.
It has more than 30 employees working in the Beijing and Shanghai offices, and public records capture some of the firm’s activity, showing that it has made at least a dozen investments in internet, healthcare and logistics companies in the last few years.
Investment weapons from Tencent, JD.com and China Development Bank, the country’s leading policy provider, have also earmarked money for one of Skycus ’largest funds, according to corporate records.
Tencent Holdings founder and CEO Pony Ma, left, sits with rival Alibaba co-founder Jack Ma at the 2018 Beijing People’s Grand Hall © AFP
Many of Skycus ’most profitable investments are in companies associated with Tencent and JD.com. According to pamphlet documents, in 2019 Skycus invested $ 40 million in JD.com’s medical division, a stake worth nearly $ 230 million today. Corporate records show that it paid $ 70 million in March 2018 for shares of JD.com’s logistics derivation, which are expected to be worth at least twice as much after the company completes a initial public offering on the Hong Kong Stock Exchange later this month.
Skycus also benefited from a $ 5 million investment in Tencent Music in January 2018, according to a U.S. securities statement. It is estimated that the bet is worth almost twice as much as today.
The sons and daughters of the “leaders” of the top Chinese leaders have generally tried to keep a low profile. But they continue to be attracted to the financial industry. “Princesses need to be extraordinarily cautious about everything they do because it’s easy for them to get attention,” said an industry executive. “But they won’t leave.”
Christopher Johnson, a former CIA analyst in China, said the principalities were still an influential group within the country despite growing pressure from Xi, whose father was a senior government party and Mao Zedong’s government official.
“Like many other members of the party’s elite, the principalities thought Xi Jinping would be ‘his man’ as he is one of their own,” said Johnson, who is the CEO of China Strategies Group, a consultancy. .
“Instead, it has reduced the scope of its influence, especially those of the higher elite families, but they remain an important constituency within the system that Xi has to manage carefully.”
Liu Tianran’s career has had an unusual trajectory. Prior to entering the financial industry, he was a journalist at Economy Observer, a Chinese business newspaper. He edited his lifestyle section and wrote articles on football and economics.
He later joined the marketing department of CCB International, an investment arm of one of the country’s “big four” state-owned banks. He then moved to an investment fund with support from the Shanghai government before starting Skycus in 2016.
A person named Tang Meng replaced Liu Tianran as president of Skycus when he left office in 2017. According to the China Asset Management Association, Tang entered the financial industry just six months earlier, after 17 years of service with Beijing Municipality. the state government security office and the People’s Liberation Army.
In May 2018, two months after his father became Deputy Prime Minister of China, Liu Tianran’s name was completely removed from Skycus ’trade presentations. Two companies under his control transferred their shares in Skycus to Tang and other companies.
Following his promotion to Deputy Prime Minister, Liu He’s portfolio was expanded to include trade negotiations with the US and the EU. He also heads the powerful development and financial stability committee of the Chinese government, a coordinating body that oversees the central bank, as well as China’s banking and securities regulators.
This role has made him one of the top officials overseeing Xi’s crackdown on Ant Group, Jack Ma’s financial technology company and its e-commerce group, Alibaba. The reduction has hit Ma companies hardest, but has also expanded to target other Internet platforms, such as Alibaba’s rival, JD.com, and at least one unit of Tencent, the main competitor. of online payments from Ant.
In November, regulators has blocked Ant’s planned $ 37 billion IPO in Shanghai and Hong Kong. Had it continued, Ant would have been valued at more than $ 300 billion, larger than even the largest banks in China and the United States.
The information office of the Council of State, the office of Liu He and Skycus did not respond to requests for comment. Liu Tianran could not be reached for comment.
[ad_2]
Source link
