The financial giant Anbang Insurance Group Co. announced Wednesday that its chairman, Wu Xiaohui, was stepping aside temporarily for “personal reasons” and that he had authorized “relevant senior executives to continue running the business.”
The announcement, which spurred a decline in stocks in which Anbang has significant investment, came just hours after the independent Chinese financial magazine Caijing reported that authorities had detained Wu.
The story was later deleted from the magazine’s website, but the BBC reported that police had taken Wu away from the Anbang offices in Beijing on Thursday.
Continue reading China, Inc Quietly Takes Down Criminal Financial Cabal
Fabricating data in China, it turns out, is not only a favorite government pastime. Publicly traded, if state-owned, phone giant Unicom Group fabricated financials relating to 1.8 billion yuan ($261 billion) in revenue over a five-year period from 2012 to 2016 – or as the company admitted, it engaged in an “unprecedented degree of falsified revenue.” This is China we are talking about, where the definition of “unprecedented” is very different from the US.
Lest there be any confusion, Bloomberg further elucidated that Unicom “engaged in organized, cross-departmental faking of financial figures” – according to an internal document leaked to Bloomberg. The disclosure is just another reminder of just how endemic fraud is at both government agencies and various enterprises in China. Recall that back in January, People’s Daily confirmed what everyone had known: the government was officially making up numbers in the rust-belt province of Liaoning, and fabricated fiscal numbers after the local economy was crippled by the commodity crunch.
Continue reading Chinese Phone Giant Admits to “Unprecedented Degree” of Falsified Revenue, Points to US Corporate “non-GAAP EPS” Revenue Falsification/”Adjustments” Across the Board