Translation: Men tian
Commentary: Wen Hong
It is truly remarkable that three months of Whistleblowers’ Movement led by Miles Guo had far greater outreach and impact throughout the entire world than the three long decades of overseas Chinese pro-democracy movement. And HNA Group is the best example. HNA, once China’s largest conglomerates, was the first “private company” Miles exposed to the public in January 2017 to be one of the Chinese Communist Party (CCP) kleptocrats’ household scams. From HNA’s incredible transformation to a global “business miracle” within as little as 4-years, the dubious “photo-death” of its CEO Wangjian, to HNA’s abrupt collapse today, we were shown along the way that truth always prevails as demonstrated by the Whistleblower’s Movement!
It was Miles who bravely ripped the deceiving veneer off the HNA Group, an entity that has consistently been relying on the CCP’s state-owned banking system for blood transfusion, using domestic and foreign loans and financial leverage to fund its high-profile M&A shopping spree both at home and abroad, feverishly acquiring high-quality assets overseas while leaving the debt at home to be paid for by the Chinese people. Moreover, HNA also operates as an overseas intelligence center of the CCP, and its core controlling shareholders are Guanjun and Liu Chengjie (who are the illegitimate sons of the CCP kleptocrats).
The Global Times (overseas edition) published an article on HNA’s bankruptcy and restructuring of HNA Group, naturally with a pro-CCP narrative, aiming to continue whitewashing the CCP, and to hoodwink western readers. Translating this article does not mean that we agree with its views, but rather that we want our readers to be able to see through the words and actions of those kleptocrats. From the Global Times’ propaganda reporting to the western media, we still can get a glimpse of HNA Group’s monstrous trajectory and enable readers to judge for themselves how scandalous and outrageous events were associated with HNA Group’s bankruptcy & restructuring.
The predecessor of HNA Group is a state-owned enterprise. In 1989, the Hainan Provincial Government funded RMB 10 million to establish Hainan Airlines and later gave Sanya Phoenix International Airport and Haikou Meilan International Airport to HNA entirely for free. And again in 1999, the ownership of three thousands acres of land on both sides of the runway of Haikou Daying Mountain Airport was also assigned to HNA. When the SARS epidemic broke out in 2001, HNA announced a loss of 1.474 billion yuan, and the Hainan Provincial Government then injected 1.5 billion yuan. In 2004, Hainan Development Holding Company injected another 1.5 billion RMB into HNA, and soon HNA Group rapidly grew into a global conglomerate with businesses ranging from aviation, hotel, finance, logistics, to eco-technology, with assets of over a trillion RMB.
In October 2017, HNA Group swung again and announced itself as a private company. The top ten shareholders have all become individuals, and Hainan Provincial Government is out of the picture completely. And thus, the state-owned assets have once again become the Kleptocrats’ private property in an “legitimate & impeccable” manner. In that same year, HNA Group was listed in the 170th place of the Fortune Global 500.
Following Miles’ whistleblow on HNA, media, investors, and creditors started to scrutinise HNA Group for the first time. Then in July 2017, an unspeakable event occurred, Guanjun transferred more than 29% of HNA Group’s shares (equivalent to US$18 billion) to a private foundation in New York registered less than a year ago, while another CNA Charity Foundation, registered in Hainan Province, also holds 22.8% of HNA Group’s shares.
It was Miles’ unrelenting effort in uncovering the truth about HNA that led financial institutions worldwide to re-examine the relationship between HNA and the CCP, a relationship that HNA simply could not state explicitly. The Whistleblowers’ Movement essentially has called an end to HNA’s unlimited credit expansion game which fully relied on financial leverage. Its trick of taking new loans to pay off old debts once busted, could no longer be continued. As such, today HNA finally embarked on the so-called “bankruptcy and debt restructuring” path.
Under the egregious CCP’s regime, there is no doubt that all HNA’s mounting debts will be written off in the name of debt restructuring. And also needless to say, the ultimate cost of such debt write-off will only be borne by the ordinarily hardworking Chinese people, namely, the “1.4 billion leeks”.
Yet, meanwhile, behind the financial collapse of this “private company” HNA, trillions worth of prime assets previously shifted abroad are now being firmly controlled, owned and enjoyed by the CCP Kleptocrats’ illegitimate offspring (and their future offspring so on and so forth), such is just another typical household transaction by those Kleptocrats.
With the above facts in mind, how will readers truly feel after reading the following pro-CCP article from the overseas edition of the Global Times?
(The content of the article only represents the author’s opinion)