The Wall Street Journal on Feb. 23 cited people familiar with the matter as saying that two co-founders of Boyu Capital, a leading Chinese private equity firm, have moved to Singapore and that some of the firm’s operations have been relocated there from its Hong Kong headquarters. The firm was founded by Jiang Zhicheng, the grandson of former Chinese Communist Party president Jiang Zemin. Sources close to the situation also said the main reason for Boyu’s move to Singapore was concern about the declining influence of Jiang, now 94, whose support has contributed to Boyu’s success.
According to a Wall Street Journal report today, the co-founder of Chinese private equity firm Boyu Capital set up a Singapore office. The firm was founded by Jiang Zemin’s grandson, Jiang Zhicheng. Two co-founders of Boyu Capital, a leading Chinese private equity firm, have moved to Singapore, and part of the firm’s operations have been relocated there from its Hong Kong headquarters, according to people familiar with the matter.
The main reason for Boyu’s tilt to the Southeast Asian city-state of Singapore is concern about the declining influence of Jiang Zemin, now 94, whose support has contributed to Boyu’s success, the report said, citing the people familiar with the matter.
The move began in late 2019, just as Communist Party leader Xi Jinping took steps to curb the influence of retired party patriarchs and strengthen the central government’s control over Hong Kong.
The people familiar with the matter said Singapore gives Boyu greater distance from possible scrutiny or adverse action by Beijing authorities than Hong Kong. They said the Singapore office, Boyu’s first outside China, offers a potential haven for the company from the party’s political struggles and helps it diversify its business from its Home base in Hong Kong, where unrest and Beijing’s crackdown on dissent have shaken business confidence.
According to a report cited by the Central News Agency today, Jiang Zemin’s grandchildren are worried about the purge, and some of the operations of the “Prince’s Party Fund” have been moved out of Hong Kong. The report cites the Wall Street Journal as saying that Boyu Capital, founded by Jiang Zhicheng, the grandson of former Communist Party general secretary Jiang Zemin, has moved some of its operations to Singapore and two of its top executives have also moved there. Sources close to the matter said that the move was a result of concerns that Jiang’s Family and allies would be purged after his influence declined.
The newspaper said, citing a number of people familiar with the matter, that Boyu Capital had moved some of its operations from its headquarters in Hong Kong to Singapore. The company’s co-founder, Tong Siu Kiu, was recently granted permanent residency in Singapore to serve as CEO of a local fund management company also called Boyu, while another co-founder, Teo Tze Yan, has also reportedly moved to Singapore.
“Boyu Capital was founded in Hong Kong in 2010 and is co-founded by Jiang Zhicheng, Tong Xiaoqiao and Zhang Zixin, in addition to the late Zhang Xuezheng. “The company also received investment from Hong Kong’s richest man, Li Ka-shing, and Temasek Holdings of Singapore.
According to the newspaper, Boyu Capital, known as the “Prince’s Party Fund,” has been in the spotlight for its acquisition of stakes in duty-free stores at Beijing and Shanghai airports.
The Wall Street Journal previously reported that Boyu Capital was also one of the investors behind Alibaba Group’s Ant Group. The paper said Ant has a complex shareholding structure made up of powerful Chinese figures, some of whom have close ties to political families that pose a potential challenge to Xi Jinping’s camp.
The newspaper cited sources familiar with the matter as saying that Singapore is a better place for Boyu Capital to avoid scrutiny or adverse action from Beijing than Hong Kong. The Singapore branch can also serve as a haven from the political struggles within the Communist Party. In addition, the “anti-China” protests in Hong Kong and Beijing’s current tightening policy on Hong Kong have also shaken the confidence of the business community. The establishment of a branch in Singapore will help Boyu Capital diversify.
The newspaper also quoted a Communist Party insider as saying that Xi’s concentration of power has weakened the influence of retired leaders trying to secure vested interests. He said that the death of a retired leader could further alter the party’s power landscape, making his allies and family members more vulnerable to purges. In addition, reports say Boyu Capital has also moved some of its operations to its Shanghai branch. A person familiar with the matter said Jiang Zhicheng used to work in Hong Kong, but now spends most of his Time in Shanghai. Shanghai is also where Jiang’s family is based. The newspaper said it is not clear how much of the business of Boyu Capital will be transferred to Singapore and Shanghai.
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