Billionaire Once Operating a Chinese Shopping Mall Has Been Taken Into Custody
Rewritten Article:
Hold onto your seats folks! The big honcho at Red Star Macalline Group Corp., one of China's biggest furniture and home decoration mall operators, has found himself in a pickle. Che Jianxing, the company's founder and go-to guy, has been apprehended and is currently under investigation.
According to a recent announcement from the company, they've received a heads-up from the Yunnan Provincial Supervisory Committee that Che is under official investigation and is currently detained. As of now, they haven't received any official notices or requests related to this investigation. And just to keep things transparent, they mentioned they'll stay in the loop for any future info and will continue with their daily business activities as usual. Chairman Li Yupeng will step up to the plate and manage things in Che's absence.
Red Star Macalline had a pretty swell run during China's real estate boom, but things have taken a downturn. Che started his journey as a carpenter, opting for the trade over education because he saw it as a wise decision for the long haul. In his 2019 book, "Work Is Life," he even shared an anecdote about being put down by a building guard for making affordable furniture. He spun this adversity into motivation, working tirelessly to become a skilled, determined fellow with a positive attitude.
Flash forward to today, and the company operates over 200 shopping malls in China, spanning 30 provinces, municipalities, and autonomous regions. However,Red Star's Hong Kong-traded shares have taken a beating, losing around two-thirds of their value over the past five years, and Che, who owns a substantial chunk of the company, was kicked off the Forbes Billionaires List in 2024.
Timeline:- May 13, 2025: Red Star announced that Che Jianxing is under investigation. His family informed the company that he has been detained.- May 14, 2025: Reports confirmed Che's detention, and the company's operations remain stable, with Chairman Li Yupeng taking over as interim general manager during the investigation period.
Specific charges against Che haven't been made public. The investigation is being led by the Yunnan Provincial Supervisory Committee, which suggests it may involve regulatory breaches or legal violations, but no details are available as yet.
The company's financial performance has taken a hit in the past two years, with significant losses reported in 2024. Reports of the company's stock prices being affected by the investigation have also surfaced, with a drop in their stock prices following the news. Despite this, the company insists that its daily operations remain unaffected, and the investigation doesn't seem to have shaken things up too much within the company.
- The unfolding investigation into China's furniture industry tycoon, Che Jianxing, has raised concerns in the business world, particularly in the finance and real estate sectors, as Red Star Macalline, a significant player in the real estate and retail industry with over 200 shopping malls across China, is affected.
- Amidst the ongoing investigation, the finance and business circles watch closely as Red Star Macalline, a renowned name in China's furniture and home decoration industry, struggles to maintain stability, with its shares significantly diminished in the stock market, and its powerful founder, once a billionaire, now under detention.
