Chinese private equity firm Boyu Capital, founded by Jiang Zemin’s grandson Jiang Zhicheng, has pulled some of its operations out of Hong Kong because of concerns that Jiang, now 94, is losing influence and that his Family and close associates could be purged in the event of his death, the Wall Street Journal said on Feb. 23, citing people familiar with the matter.
The move to relocate some of Boyu Capital’s operations from its Hong Kong headquarters to Singapore began in late 2019, people familiar with the matter said, as Communist Party leader Xi Jinping took steps to curb the influence of retired party patriarchs and strengthen central government control over Hong Kong.
Reports say Jiang Zemin, who served as general secretary of the Communist Party’s Central Committee for 13 years, is a patron of the so-called “Shanghai Gang” of officials, while Boyu Capital is known as a “princeling party” fund. Xi called off the initial public offering of Chinese fintech giant Ant Group late last year in part because of concerns about its complex ownership structure and the investors behind it. Those investors include Boyu and a company controlled by the son-in-law of a retired top official with ties to Jiang Zemin.
The report cites Communist Party insiders as saying that the influence of the aging Jiang Zemin has waned as Xi Jinping has gradually taken the reins. But by the Time Jiang dies, the power structure within the party could change further, leaving his family and cronies more vulnerable to purges.
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