Chen Feng and Tan XiangDong had been arrested but HNA’s problem is far from over

  • Author: Peacelv
  • Editor: JIHO

At the night of Sep 24th, the HNA Group announced that according to the notice from Hainan police office, the chairman Chen Feng and the chief executive officer Tan XiangDong have been taken compulsory measures in accordance with the law because of suspected illegal crime.

Picture from internet

Chen Feng said he believes in Buddhism, so the enterprise culture of HNA was effected by Buddhist culture deeply. According to the report from Hainan Post which posted on  China Economics Week , even the HNA buildings were designed like a Buddha sitting cross-legged.

In Sep 18th, 6 days before Chen Feng was arrested, Gu Gang, the head of joint working group and and the Party Secretary of HNA Group, in the 39th weekly security production meeting announced HNA Group will be rebuilt and departed into 4 fully independently operated sectors including aviation sector, airport sector, financial sector and commercial sector and other sectors, each will be leaded by new substantial shareholders and fully independent of each other, thus to ensure all the sectors can return back to their own main business.

Picture from internet

According to the analysis, Chen Feng’s arresting was related to the collective reporting of employees. In June 30th, from the internet news, 20 thousand of employees in HNA Group had collectively reported Chen Feng darkly operated private fund-raising money , and he had greed and delusion to change HNA to a family enterprise and use the power to gang up and enrich himself and so on.

In the reporting letter, it said the son of Chen Feng, Chen XiaoFeng parachuted into the HNA Board of Directors without any legal compliance procedures from the group. The son of Chen Feng totally did not have any knowledge about management and aviation business, but Chen Feng insisted in his son taking part in and controlling the group business. He had delusions about changing HNA to his own family enterprise, which had severely constrained the group’s growth and speeded up the HNA’s bankruptcy and pushed the HNA Group which was in deep water further into the abyss.

And according to the Free Times news quoted Bloomberg, from a file which was submitted to the SEC on Mar 15th,2017, Tan XiangDong was listed an American citizen. And New York Times also had reported a file which was submitted to Hong Kong Regulators showed Tan XiangDong held a U.S. passport.

Chen Feng was always the vice President of China, Wang QiShan(王岐山)’s subordinate. He once assisted Wang Qishan to complete the Soros’ Quantum Fund’s investment about 25 million dollars in the HNA Group. It’s Wang Jian who died in 2018 July in France and Chen Feng help Wang Qishan build HNA Group. Wang Jian was more like a CEO but Chen Feng was more like the chairman, because he was more trusted by Wang.

The incident has showed Wang Qishan might be in unfavorable position in China’s political struggle. And in the past years, Chen Feng had helped Wang QiShan transfer vast money overseas, these could make Xi JinPing suspected Wang Qishan.

Far from year 2017, many people with conscience have been investigating the HNA Group’s investment overseas, and as the Chen Feng’s accident unfolded, the secrets about HNA’s money would be uncovered and finally the money would return to the Chinese people’s pockets.

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