The storm caused by the Panama Papers has swept through Hong Kong again. New leaks list 18 big-name celebrities in Hong Kong and Macau, including international film star Jackie Chan, who are said to have set up a number of complex offshore companies.
Also on the list are Hong Kong’s richest man, Li Ka-shing, and Henderson Land chairman Lee Shau Kee. Some of the celebrities, such as the deputy chairman of the New Democratic Party, Michael Tien Puk-sun, have apologised for failure to declare their interests in the offshore investment. However, Jackie Chan has been silent so far.
Chan has always been a favourite star of the United Front Work Department of the Chinese Communist Party (CCP). The public has been repeatedly outraged by Chan’s speeches flattering the CCP.
The Panama Papers exposed the political and business network utilised by the CCP to buy off Chan. The network includes seven mainland tycoons operating businesses with Chan, four are well-known billionaires.
Chan, a martial arts star, became popular internationally with the 1978 film “Drunken Master.” He is among a few Chinese actors who successfully merged into Hollywood A-listers. Chan’s numerous blockbusters set box office records and brought him into the limelight.
As a member of the Chinese People’s Political Consultative Conference (CPPCC) National Committee, Chan also actively mingled with top government officers and businessmen in mainland China.
However, in recent years, Chan seems to have been hit by one misfortune after another. In August 2014, his son, Jaycee Chan, was arrested by Beijing police for drug use. This year, Jackie Chan was absent for the first time from the CCP’s 2016 annual political meetings.
The products endorsed by Chan have also suffered huge losses, scandals, or even closure. Chan has been satirized by Chinese netizens as an “jinx.”
Jackie Chan (C) leaves the opening session of the CCP annual meeting in Beijing on March 3, 2013. (Mark Ralston/AFP/Getty Images)
Mysterious beverage company
A Panama file mentioned that Mossack Fonseca & Co. has been an authorized agent of at least six offshore companies belonging to Chan.
The directors include Chan’s wife, Joan Lin, and their son Jaycee Chan. One of Jackie Chan’s companies, Dragon Stream Limited, was established by 10 people, in the British Virgin Islands in 2008.
While Chan is the largest shareholder, holding more than 50 million shares, seven of the remaining nine shareholders are wealthy mainland Chinese people, including Sparkle Roll Holdings chairman Qi Jianhong, Belle International Holdings founder Yu Mingfang, China Dongxiang Group chairman Chen Yihong, and Intime Department Store Group chairman Shen Guojun, each holding 2 percent to 9.75 percent shares of Dragon Stream.
The other two shareholders, Solon So and Zhao Xiaodong, are respectively Jackie Chan’s business agent and the former executive director of Sparkle Roll Holdings.
Epoch Times looked up many files but could not find the business nature of Dragon Stream. However, on LinkedIn, a curriculum vitae of a self-proclaimed deputy general manager of Jackie Chan (Beijing) Beverage Co. Ltd. revealed that the company was founded before the 2008 Beijing Olympics by Chan and seven famous mainland entrepreneurs.
With 200 million yuan (US$30 million) in capital, Jackie Chan Beverage Co. engaged in production and sale of high-end drinks and mineral water in the domestic market. The identities of the seven entrepreneurs are identical to those of the seven wealthy shareholders of Dragon Stream.
Shen Guojun
Among the seven wealthy mainland shareholders, Intime chairman Shen Guojun has the highest net assets, worth 20.2 billion yuan (US$3 billion). Shen is a good friend of Alibaba chairman Jack Ma.
Shen was reportedly born in a rural village in Zhejiang Province. He started his business by operating department stores, while how he built up his fortune remains a mystery.
Shen joined the China Zhi Gong Party in 2009. Zhi Gong party is one of the eight “democratic parties” officially recognised by the CCP.
The party consists of about 30,000 members, mainly from the middle and upper classes of returned overseas Chinese. The main purpose of the Zhi Gong party is to control overseas Chinese at home and abroad for CCP.
Shen also regularly participates in activities with the United Front Work Department officials. But, Shen’s political role remains unknown.
Both Shen and Chan are members of the CPPCC National Committee of the CCP. In addition to business cooperation, Chan regularly attended the activities organised by Intime.
In 2013, Intime was involved in a lawsuit in Hong Kong. Continental Century Investment Management Group Limited, operator of the famous Inagiku Japanese Restaurant, lodged a lawsuit in the High Court alleging that Intime and its chairman Shen utilised false statements to mislead Inagiku into opening a branch in the Beijing Yintai Centre.
In addition, Intime allegedly sent some people to ransack and seize Inagiku assets. Continental Century sought 300 million yuan in compensation from Intime.
Qi Jianhong
April 7 this year was Chan’s 62nd birthday. On that day, Chan, as a shareholder star, presented himself in the Shanghai Stock Exchange to attend the ceremony of renaming and restructuring Cultural Investment Holdings Co. Ltd (CIH).
CIH chairman Qi Jianhong is another super-rich mainlander on the shareholders list of Dragon Stream.
Qi, well-known for his extensive network with Chinese tycoons, is operating the Sparkle Roll Glory Club, which consists of more than 3,000 millionaire and billionaire members.
Qi is the founder of Sparkle Roll Holdings Group, which mainly engages in acting as an agent of the world’s top luxury brands and became the sole mainland agent of Bentley, Rolls-Royce, and Lamborghini. It is also the exclusive agent of the brand of Jackie Chan.
In 2010, Sparkle Roll Holdings Group cooperated with Chan to establish Jackie Chan Lai Yiu International Studios, which operates 36 branches in the mainland. At the same time, Sparkle Roll engages in the production of Moutai Jackie Chan Liquor and other goods in the mainland.
Qi Zhenkang, the eldest son of Qi Jianhong, is Jackie Chan’s assistant planning director in China. In the 2010 Hunan Spring Festival Gala, Chan also sang a song titled “Country” with Qi Meihe, the daughter of Qi Jianhong. “Country” is the “red,” or communist, song Jackie sang in the CCP’s 60-Year Anniversary Gala.
More secrets exposed
Jacky

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HONG KONG—Hong Kong has long been known as an international money-laundering hub, especially for mainland China.
According to the Panama Papers, Hong Kong has 2,212 intermediaries (including banks, law firms, and accountants), surpassing the United Kingdom and Switzerland as the region with the most offshore companies. Hong Kong is also the region with the most active clients—37,675 in total—in terms of the number of offshore company incorporations.
The Associated Press reported last month that China has become an international money-laundering hub, and most of the money first came to Hong Kong.
According to the FBI, the fraud has cost thousands of companies, many of which are U.S. companies, US$1.8 billion in just over two years through China and Hong Kong.
Liu Jianchao, deputy director of the National Bureau of Corruption Prevention, said during China’s annual political meetings, the “Two Sessions,” that corrupt mainland officials are using Hong Kong as a channel to launder money. According to an internal source in the Central Commission for Discipline Inspection (CCDI), 90 percent of the money is laundered in Hong Kong.
How money is channelled in and out of Hong Kong will be one of the focuses of the investigation.
After the Panama Papers came to light, former vice-chairman of the Central Military Commission Guo Boxiong was reported to have pleaded guilty and been handed over to prosecutors. Guo was found to have taken bribes worth US$12.3 million (approx. HK$95.4 million) and been involved in money laundering.
A woman born in the 1990s was reported to have laundered billions of dollars for the faction of former Chinese Communist Party leader Jiang Zemin and former vice-chairman of the Central Military Commission Xu Caihou’s family through various banks in Hong Kong.
The Panama Papers released by the International Consortium of Investigative Journalists (ICIJ) date back to a year ago, when an anonymous informant released the information to the German newspaper Süddeutsche Zeitung. The latter coordinated with the ICIJ to work with more than 400 reporters from 100 media organizations across 80 countries to analyse the 11.5 million files.
As more data is revealed, more companies and people in Hong Kong will be implicated.
Translated by Su Lin. Edited by Sally Appert.

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The Panama Papers, a recently released collection of over 11 million leaked documents, has revealed that top politicians worldwide are connected with potentially shady offshore business deals. Included in the long list of world leaders are the names of several powerful Chinese Communist Party elites.
According to a report by the International Consortium of Investigative Journalists (ICIJ) on April 6, Chinese leader Xi Jinping, Politburo Standing Committee members Liu Yunshan and Zhang Gaoli, former China vice chairman Zeng Qinghong, and a handful of others all have relatives that acquired offshore companies through Mossack Fonseca, a law firm in Panama that helps set up offshore shell companies for would-be customers. ICIJ is one of several media outlets that scrutinized leaked documents from the Panamanian company in 2015.
Deng Jiagui, the brother-in-law of Xi Jinping, had three companies registered under his name—Supreme Victory Enterprises Ltd., Best Effect Enterprises Ltd., and Wealth Ming International Ltd. Supreme Victory was dissolved in 2007, and the other two companies had become dormant by 2012 when Xi became Party chief.
It appears that Deng’s decision to relinquish his overseas assets was motivated by political considerations, and is consistent with a similar move involving the largest real estate developer in China.
During a speech at Harvard University last October, Wang Jianlin, the chairman of Dalian Wanda Group, said that the Deng family used to own shares with his company for six years, but sold them before the company went public and missed the chance to accrue a windfall.
This accords with reports that circulated in the overseas Chinese press saying that when he was in line to be promoted to the leadership, Xi called his family members together and told them to get out of business—perhaps as a way of insulating himself from the political blowback that has come to those found to have family members who benefited from corruption.
The relatives of Liu, Zhang, and Zeng kept their offshore assets while they were holding top office.
For instance, Jia Liqing, the daughter-in-law of Party propaganda chief Liu Yunshan, is a shareholder and director of Ultra Time Investment, a shell company incorporated in the British Virgin Islands in 2009.
Jia’s father, Jia Chunwang, had worked in the security and legal departments for two decades in several top positions—head of the Ministry of State Security from 1985 to 1998; head of the Ministry of Public Security from 1998 to 2002; and procurator-general, a post equivalent to Attorney General in the United States, from 2003 to 2008.
Lee Shing Put, the son-in-law of vice premier Zhang Gaoli, is a shareholder of three companies incorporated in the British Virgin Islands—Zennon Capital Management, Sino Reliance Networks Corporation, and Glory Top Investments Ltd.
And Zeng Qinghui, the younger brother of Zeng Qinghong, was the director of China Cultural Exchange Association, a company first formed in Niue and then re-domiciled in Samosa in 2006.

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