China News  
SINO DAILY
China mulls tighter control of foreign charities: report
by Staff Writers
Beijing (AFP) April 25, 2016


Back soon, says China money manager who disappeared
Shanghai (AFP) April 25, 2016 - The head of a Chinese wealth management firm who allegedly fled with more than $150 million in investors' money surfaced in an online video on Monday saying he will "be right back", as police searched for him.

Yang Weiguo, chairman of conglomerate Wangzhou Group, disappeared with around 1.0 billion yuan ($153 million) last week, leaving thousands of investors unpaid, the official Xinhua news agency reported late Sunday.

A wealth management subsidiary which Yang manages, Wangzhou Fortune, has experienced cash flow problems since mid-April, the report said.

Wangzhou Fortune, which has operations in several cities including Shanghai and nearby Hangzhou, issued a statement last week saying Yang had vanished and the company had reported the case to police.

But in a video posted by the 21st Century Business Herald, Yang told investors not to worry.

"Hello everyone, it's me," said a man in a suit jacket and open-necked dress shirt identified as Yang. "Don't worry, I will be right back."

In a separate statement published by the newspaper he denied any wrongdoing.

Wangzhou Group is a conglomerate with a wide range of business areas including logistics, media, finance and hotels, according to its website. It has more than 100 branches in over 50 cities.

The case is the latest involving alleged financial fraud to emerge in China as the economy slows, sometimes leaving investment firms struggling to pay out promised returns.

Earlier this month, police detained more than 20 managers of the Zhongjin group of finance companies, including its head, at the airport as he apparently tried to flee the country on a chartered plane.

Another wealth management firm, Shanghai-based Jinlu Financial Advisors, has also struggled to pay back investors, causing them to besiege its office in the commercial hub.

In another recent scandal, peer-to-peer lending firm Ezubao bilked 900,000 investors out of $7.6 billion by offering high interest rates which it was unable to pay, in what one executive described in a televised confession as a "typical Ponzi scheme".

Chinese legislators are considering a new draft of a controversial law requiring foreign non-profit organisations to report activities to government agencies while curtailing the recruitment of supporters, state media said Monday.

The law on overseas non-governmental organisations (NGOs) was delayed after an outcry from charities and concerns from foreign governments that it gave wide-ranging discretionary powers to police amid a domestic crackdown on civil society.

A draft of the bill -- covering foreign charities, business associations and academic institutions in China -- has been submitted to a legislative session being held this week, the official Xinhua news agency said.

The rubber-stamp National People's Congress is controlled by the ruling Communist Party and if the measure is put to a vote it is certain to be approved.

Xinhua indicated that the law's third draft preserved features which previously triggered concerns, including a requirement that NGOs "partner" with a Chinese government-controlled agency and report activities to authorities.

It said government partners of foreign NGOs would be required to report any "temporary activities" to authorities at least 15 days in advance, without giving further details.

Chinese police would have the right to cancel any activities they judge a threat to national security, and would be empowered to "invite for talks" the heads of foreign NGOs in China, it said.

It added police could add any foreign NGO they judged to promote "subversion of state power" or "separatism" to a "not welcome list" which would ban them from the country.

Overseas NGOs would also be forbidden from recruiting "members" in mainland China, Xinhua said, barring special permission from the State Council, China's cabinet. It was not specified whether that included local staff.

The Global Times newspaper, which is close to the ruling party, cited a Chinese NGO official as saying the law's "engagement" of police was unlikely to change as the measure had been drafted with "national security" in mind.

At least 1,000 foreign NGOs are thought to operate in China, including development charities such as Save the Children, advocacy groups such as Greenpeace, chambers of commerce and university centres.

China's state-run media in recent years have accused such organisations of undermining national security and trying to foment "colour revolution" against the ruling party.

China in January arrested and deported a Swedish human rights activist who had trained Chinese lawyers, and foreign NGO staff working on legal issues report an increasingly restricted environment.

President Xi Jinping has in recent years overseen a crackdown on civil society, with scores of lawyers, academics and activists detained and dozens jailed.

Several have been charged with "separatism" or "inciting state subversion" for what their lawyers say is merely the expression of critical opinions.

Xinhua said a legal committee had suggested the draft bill should be voted on this week by the NPC Standing Committee, which approves legislation when the full house is not in session.


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