UNITE HERE has sent a letter to the China Securities Regulatory Commission to bring attention to activities by companies partially owned by Zijiang Group and its chairman, Shen Wen. These activities were uncovered during research on Zijiang Group’s hotel, the Marriott Shanghai Hotel Hongqiao.
As the letter (accessible on this website in English and Chinese) details, two companies partially owned by Zijiang Group – Zijiang Enterprise and Well Tech – omitted from their IPO filings the fact that the directors of their largest shareholders had business relationships. These relationships gave Shen Wen influence over a majority of the companies’ shares after the offerings. In addition to evidence of a business relationship between the shareholders from publicly available information, directors with the same name as directors of the shareholders in Zijiang Enterprise served concurrently on the board of a Bermuda corporation.
Separately, a Zijiang Group company sold a significant stake in Well Tech to another company, Shanghai Zizhu, at a price below market value. Shanghai Zizhu was founded by Jiang Mianheng, son of former Chinese president Jiang Zemin.