The Public Security Bureau of Haikou City, Hainan Province, issued a notice this Wednesday (May 5) to investigate Phoenix Financial for allegedly illegally absorbing public deposits, and He Xin, the actual controller and chairman of Phoenix Financial, has been criminally detained. He Xin is the son-in-law of Liu Changle, the former chairman of the board of directors of Phoenix Satellite Television. This move by the authorities has sparked much debate.
Two weeks after Liu Changle, former chairman of the board of directors of Phoenix Satellite Television, sold all his shares in Phoenix Satellite Television, his son-in-law He Xin was criminally detained by the police on suspicion of illegal fund raising. The official microblogging site of Haikou Public Security Bureau of Hainan Province released news on Wednesday that the Longhua Branch of Haikou Public Security Bureau on April 30, officially opened an investigation into the suspected illegal absorption of public deposits by Phoenix Wisdom Information Technology (Haikou) Co. The company’s legal representative and de facto controller He has been criminally detained in accordance with the law, and the case is under further investigation.
In an interview with the station on Thursday (6), Chinese independent media personality Huang Yongqiang said that Phoenix Financial is suspected of illegal fund-raising, as Liu Changle has an unshirkable responsibility:.
“He Xin controlled by the Phoenix Financial really went wrong, on September 11 last year, Phoenix Financial in the absence of any announcement and notice, stopped the online loan products. This of course caused panic among investors and the concern of the financial management authorities.”
According to insiders, He Xin had been subject to coercive measures by the authorities several months ago. And Liu Changle sold all his shares of Phoenix TV two weeks ago to clear the way for the investigation of He Xin’s illegal fund-raising case.
The arrest of He Xin can be called a stone two birds
Huang Yongqiang, who understands the matter, said that the authorities took the knife of Liu Changle family members, can be said to kill two birds with one stone.
“The arrest of He Xin may be a move that kills two birds with one stone and two birds with one arrow. On the one hand, it is a move by the financial management authorities to rectify the so-called financial order. In addition, it does not rule out that through this move to combat Liu Changle’s influence in Phoenix and his feather in Phoenix.”
A number of investment products under Phoenix Financial reportedly involved 70,000 investors, amounting to RMB 10 billion. The investors, with no hope of payment, have repeatedly launched rallies to ask the financial management to come to their aid and file cases against Phoenix Financial. The victims have repeatedly gone to the financial administration of Hainan Province and the relevant departments of Haikou City, pulling banners and shouting slogans, demanding Liu Changle to pay back the money: “The financial bureau does not act, the financial bureau does not act, the financial bureau does not act ……”
In line with the current Beijing “fight the landlord” and the country into the people’s retreat policy
Public information shows that Phoenix Financial is the intelligent financial services platform of Phoenix Satellite Television Group, which includes a number of investment services such as online loans, funds, wealth management, current, brokerage.
Phoenix official announced on April 17 that Liu Changle, former chairman of Phoenix Satellite Television, Inc. and a major shareholder, sold 37.93% of Phoenix shares on April 16 and 17, 21% of which was sold to Chinese company Zijing Culture Group. At this point, Liu Changle has sold out almost all of his shares in Phoenix TV.
According to Chinese human rights lawyer Chen Jiangang, the withdrawal of Liu Changle’s family from Phoenix TV and the arrest of Liu’s son-in-law He Xin are in line with Beijing’s current policy of “fighting the rich and powerful” and the advancement of the state and the retreat of the people. He said.
“To fight the tycoons, to wreak havoc on such individuals and their families, in fact, under such actions, all purposes can still be achieved. They really can’t save these people no matter how much property they have.”
Back in February, major personnel changes occurred at Phoenix Satellite Television in Hong Kong, with the chairman and general manager positions being replaced. Phoenix founder Liu Changle and his family members all quit the management. The successor, Xu Wei, had been editor-in-chief of Shanghai Oriental TV, spokesman for the Shanghai government and director of the municipal government’s information office. The position of executive vice president was filled by Sun Yusheng, formerly deputy editor-in-chief and deputy director of CCTV of the China Central Radio and Television Corporation (CCTV).
Reportedly, this personnel adjustment and its Phoenix Financial burst pot case related. However, it is also believed that the content of Phoenix TV programs under the control of Liu Changle. According to the information, in 2011 to 2012, Liu Changle and the former Chongqing Municipal Party Secretary Bo Xilai’s relationship has attracted attention, because the Phoenix TV at the time was vigorously touting Bo Xilai’s achievements in Chongqing.
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