Real estate company Fantasia Holdings declared its inability to pay $205 million worth of dividends on Oct. 4, according to Vision Times. Fantasia Holdings belongs to the family of former Vice President of China Zeng Qinghong, a faction of Jiang Zemin.

According to Bloomberg, the head of Fantasia Holdings is Zeng Baobao, the granddaughter of Zeng Qinghong. Zeng Shan, the grandfather of Zeng Baobao and the father of Zeng Qinghong, served as Minister of Internal Affairs under Mao Zedong.

The outside world speculated about Fantasia’s inability to repay dividends of $205 million. It is likely related to Zeng Baobao of Jiang Zemin’s faction being under attack by CCP leaders.

Vision Times reported that the CCP purged the Zeng Qinghong family because they revealed their wealth and many financial scandals.

In 2008, Zeng Qinghong’s son Zeng Wei bought a mansion in Sydney for $18 million. So naturally, this news became very popular in China.

At the same time, mainland China’s Caijing newspaper revealed that Zeng Wei bought a 91.6% stake in Luneng Group for $584 million. At the same time, this segment has a net worth of $11.6 billion. This event resulted in the loss of more than $11 billion of state assets. Zeng Wei has earned billions of dollars from the transfer of ownership of Luneng Group.

In addition, Bloomberg reported that the assets of the Zeng family were also exposed in the Panama Papers scandal. From 2002 to 2007, when Zeng Qinghong held the position of vice president of the country, Zeng Qinghong’s younger brother Zeng Qinghuai registered the China Cultural Exchange Association on the Island of Niue. However, he registered the company again in Samoa, and the Zeng family is said to have done this as a money-laundering ploy.

These companies once enjoyed political protection; now they have no choice, said Lin Heli, a professor at the University of Hong Kong. If we do not obey Xi Jinping’s orders, the future will collapse.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.