Red Star Furniture Tycoon Arrested: What's Going On with Che Jianxing?
Billionaire Previously Owning a Mall in China Held in Custody
In a surprising turn of events, the founder of Red Star Macalline Group, Che Jianxing, has been detained and is under investigation as of Monday night. This stunning revelation was made by the company itself in a filing with the Hong Kong Stock Exchange.
According to the announcement, Che, who was once a billionaire, is currently under investigation by the Yunnan Provincial Supervisory Committee. The company has not received any official notification regarding the investigation, nor have they been asked for assistance or information. They are, however, keeping a close eye on any updates and maintaining their normal business operations.
The chairman of Red Star, Li Yupeng, will take over Che Jianxing's duties as General Manager in the meantime. This change was necessary to ensure the company's smooth operation during this period.
Che Jianxing, originally a carpenter by trade, rose from humble beginnings to establish Red Star Macalline Home Group Co., Ltd in 2007. He served as Chairman and General Manager until August 2023 and played a pivotal role in the company's growth, transforming it into one of China's largest furniture and home improvement retail chains.
While the nature of the investigation is unknown at this time, it has led to a restructuring of the company's ownership. Xiamen C&D Inc. has become the new controlling shareholder, having purchased 29.95% of Red Star Macalline shares for 6.286 billion yuan, making a significant shift from private entrepreneurship to state-owned enterprise oversight.
It's essential to note that Che Jianxing remained the company's largest individual shareholder, although his influence has lessened after this latest development. This unprecedented event marks a significant turn for not only Red Star Macalline but also the Chinese business world.
[1] China's Richest: Red Star Macalline's Che Jianxing Shares His Wisdom - Forbes (Link)[3] American Business Group Lauds U.S.-China Trade Agreement; Stocks Soar - CNBC News (Link)
- The investigation of Red Star Macalline's founder, Che Jianxing, by the Yunnan Provincial Supervisory Committee in China has led to a shift in the company's ownership, with Xiamen C&D Inc. becoming the new controlling shareholder.
- Despite the changes in Red Star Macalline's leadership and ownership, the company continues to operate normally in its business sectors such as real estate, shopping malls, and furniture, which are integral to China's economy and finance.
