They have begun to clamp down on their business private sector which just had a huge business default that shook world financial markets including Wall Street….
The authorities in China have taken into custody the top two executives of a conglomerate that bought up businesses around the world before quickly collapsing under heavy debts, the latest move to discipline the country’s corporate leaders.
The conglomerate, a transportation and logistics company called HNA Group, said late on Friday that the police on Hainan Island, where it is based, had seized its chairman, Chen Feng, and chief executive, Tan Xiangdong.
Both men were detained “in accordance with the law for suspected crimes,” the company said in a statement, without specifying those offenses. HNA did not immediately respond to requests for comment.
The detention of the two men comes as global investors await the fate of another troubled Chinese corporate giant, China Evergrande Group. The company, which is struggling under more than $300 billion in debt, is widely seen as at risk of defaulting on its obligations. It isn’t clear yet whether it made a payment on $83 million in foreign debt that was due on Thursday….
China just banned Crypto transactions…….
China intensified its crackdown on cryptocurrency on Friday, declaring all financial transactions involving cryptocurrencies illegal and issuing a nationwide ban on cryptocurrency mining, the power-hungry process in which computer networks compete to solve calculations in return for newly created crypto tokens.
In a joint statement by 11 Chinese government entities, authorities vowed to work closely to punish “illegal” crypto mining activities to help prevent the “hidden risks caused by the blind and disorderly development” of the industry and to help the country achieve its carbon reduction goals.
China’s central bank announced that services offering trading, order matching, token issuance and derivatives for virtual currencies would be strictly prohibited. The bank also said that overseas crypto exchanges providing services in mainland China were illegal.
Bitcoin, the world’s largest cryptocurrency, dropped as much as 7 percent, to around $41,100, after the notice was posted by China’s central bank…..