At the end of November, Zhang Li, the founder of China R&F Group, was arrested in London. He is facing extradition proceedings because the United States accused him of taking bribes to win a business contract in San Francisco.

Recently, Guangzhou R&F Properties Co., Ltd. said that Zhang was accused of bribery for hosting a banquet in China for the former executive of the San Francisco Public Works Department and providing him with hotel accommodation.

According to the U.S. Department of Justice, the former director of the San Francisco Department of Public Works was in charge of public contracts, permits, and construction projects in San Francisco. He had accepted bribes from contractors and developers.

Zhang teamed up with wealthy Hong Kong businessman Li Silian to establish the R&F Group in Guangzhou in 1994. He has since become one of China’s top 10 real estate developers.

After the news of Zhang’s arrest, R&F Group’s shares in Hong Kong-listed R&F Real Estate plummeted.

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