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POLITICAL MEMO POLITICALPOLITICAL MEMO MEMO 2 CHILDREN SLAIN Billions Amassed in the Shadows POLITICAL MEMO 2 CHILDREN2 CHILDREN SLAINObama SLAINBillions Campaign Endgame: Amassed in the Shadows 2 CHILDREN SLAIN Billions Amassed AmassedAT HOME IN CITY; in inBy the thethe ShadowsFamily Shadows of China’s Premier ObamaObama Campaign Campaign Endgame: Endgame: Grunt Work and Cold Math NANNY ARRESTED Obama Campaign Endgame:AT HOMEAT HOME IN CITY; IN CITY; Many relatives of Wen Jiabao, including his son, daughter, younger brother and AT HOME IN CITY; By JIMBy RUTENBERG the Family of brother-in-law,China’s have become extraordinarily Premier wealthy during his leadership. Grunt Work and Cold Math CHICAGO — This is what post-debateByBy movement thethe in the Family Family of of China’s China’s Premier Premier GruntGrunt Work Work and and Cold Cold Math Math “grinding it out” looks like at polls has peaked, Mr. Obama’s BOY AND GIRL STABBED Wen Jiabao NANNY ARRESTEDPresident Obama’sMany election relativeshead- campaign of technicians Wen Jiabao, — and including his son, daughter, younger brother and PRIME MINISTER OF CHINA NANNYNANNY ARRESTED ARRESTEDquarters: scores of young staffManythat’s relativesrelatives what many of of themof Wen Wenare — Jiabao, Jiabao, including including his hisson, son, daughter, daughter, younger younger brother brother and and Has said leaders should members intently clicking away are putting as much faith in the Mother Found Them — ensure that family By JIM RUTENBERG at computer keyboardsbrother-in-law, as they multimillion-dollar have become machine they extraordinarily wealthy during his leadership. members and friends By JIMBy RUTENBERG JIM RUTENBERG crunch gigabytes of data aboutbrother-in-law,built for just such a haveclose have race become asbecomeSuspect extraordinarily extraordinarily Cut Her Own wealthy wealthy during during his leadership. his leadership. “do not abuse govern- CHICAGO — This is what post-debate movement in the which way undecided voters are in the president himself. ment influence.” CHICAGOCHICAGO — This —is Thiswhat is what post-debatepost-debate movement movement in the in the “We are exactly where I Throat, Police Say “grinding it out” looks like at polls has peaked, Mr. Obama’s leaning, where they can be Wen Jiabao “grinding“grinding it out” looks it out” like looks at like at polls haspolls peaked, has peaked, Mr. Obama’sMr. Obama’sBOY ANDBOYBOY GIRL AND AND STABBED GIRL GIRLreached, STABBED STABBED and when; strategists thought we would be, in a very Wen WenJiabao Jiabao standing at whiteboards busily close election with 12 days left MOTHER President Obama’s election head- campaign technicians — and PRIMEPRIME MINISTER MINISTER OF OF CHINA CHINA PresidentPresident Obama’s Obama’s election election head- head-campaigncampaign technicians technicians — and — and writing and erasing early voting with two things to do and two By WENDY RUDERMAN YANG ZHIYUN PRIME MINISTER OF CHINA quarters: scores quarters:of young scoresstaff of youngthat’s staff what manythat’s of what them many are — of them are — numbers and turnout possibili- things only: persuade the unde- and MARC SANTORA Had investments in HasHas said said leaders leaders should should quarters: scores of young staff that’s what many of them are — ties; a lonely Ping-Pong table. cided and turn our voters out,” A mother returned home to her her name in Ping An Has said leaders should members intentlymembers clicking intently away clickingare putting away as aremuch putting faith as in much the faith in the said Jim Messina, 43, the presi- Insurance once worth ensureensure that that family family members intently clicking away are putting as much faith in theMother FoundMother ThemFoundThe — Themwave of passion — and ex- luxury Upper West Side apart- ensure that family at computer keyboardsat computer as they keyboardsmultimillion-dollar as they multimillion-dollar machine they machine they Mother Foundcitement Them that coursed — through dent’s technocratic campaign ment on Thursday evening to $120 million. membersmembers and and friends friends at computer keyboards as they multimillion-dollar machine they Mr. Obama’s headquarters here manager, slightly paler and more find two of her children, a 2-year- members and friends crunch gigabytescrunch of data gigabytes about of databuilt about for just suchbuilt a for close just race such as a close raceSuspect as SuspectCut Her Cut Ownin 2008 Her has been Own replaced with a hunched than he was when the old boy and a 6-year-old girl, fa- “do“do not not abuse abuse govern- govern- crunch gigabytes of data about built for just such a close race as Suspect Cut Her Own campaign began. Pointing to the tally stabbed in a bathtub by the “do not abuse govern- WIFE which way undecidedin voters the president are in himself.the president himself. methodical and workmanlike ap- ment influence.” ZHANG BEILI which way undecided voters are proach to manufacturing the win- rows of personnel outside his of- family’s nanny, the authorities ment influence.” which way undecided voters are in the president“We are exactly himself. where I Throat, Police Say ment influence.” Is an expert in gems leaning, where theyleaning, can bewhere they can“We be are exactly where I Throat, Police Sayning coalition that came together fice on Thursday, he added, “Ev- said. The nanny herself lay on the leaning, where they can be “We are exactly where I Throat, Police Say erything in that room has been floor, near a bloody knife, with an and a force in the reached, and when; strategists thought we would be, in a very more organically and enthusiasti- nation’s diamond trade. reached, and when; strategists thought we would be, in a very cally for him the last time, a more focused on that.” apparently self-inflicted slash to reached,standing and when; at whiteboards strategists busilythoughtclose we election would be,with in 12 a days very left FourMOTHER years ago, Mr. Obama’s standing at whiteboards busily close election with 12 days left arduous task with no guaranteeMOTHER her own throat. By WENDY RUDERMAN YANGpoliticalMOTHER ZHIYUN team here was preparing Police Commissioner Raymond standingwriting at whiteboards and erasing busily early votingclose withelection two thingswith 12 to days do and left twoBy WENDY RUDERMANof success. YANG ZHIYUN REUTERS writing and erasing early voting with two things to do and two As Washington and the cable one of its trademark showstop- W. Kelly said the mother, Marina with twothings things only: to persuade do and two the unde- By WENDYand MARC RUDERMAN SANTORA HadYANG investments ZHIYUN in BROTHER writing andnumbers erasing and early turnout voting possibili- and MARC SANTORAnews commentariat breathlessly pers: a half-hour prime-time pro- Krim, had left her apartment a WEN JIAHONG numbers and turnout possibili- things only: persuade the unde- Had investments in block from Central Park at 57 numbersties; and a turnout lonely Ping-Pong possibili- table. thingscided only: and persuade turn our the voters unde- out,” A andmother MARC returned SANTORAdiscuss homewhether Mittto her Romney’sherHad name investmentsContinued in Ping on AnPage in A23 Controls $200 million ties; a lonely Ping-Pong table. cided and turn our voters out,” her name in Ping An West 75th Street to take one of in assets, including The wave of passion and ex-cided saidand Jimturn Messina, our voters 43, theout,” presi-A motherluxury returned Upper home West to her Side apart- Insuranceher name once in Ping worth An her children, a 3-year-old girl, to ties; a lonely Ping-Pong table. A mother returned home toInsurance her once worth waste treatment The wave of passion and ex- said Jim Messina,dent’s 43, technocratic the presi- campaignluxury Upper West Side apart- $120 million. a swimming lesson. The two oth- plants and recycling The wavecitement of passion that coursed and ex- throughsaid Jim Messina, 43, the presi- luxuryment Upper on Thursday West Side evening apart- to Insurance once worth er children were left with the citement that coursed through dent’s technocraticmanager, campaign slightly paler andment more on Thursday evening to $120 million. businesses. citementMr. that Obama’s coursed headquarters through heredent’s technocratic campaign mentfind ontwo Thursdayof her children, evening a 2-year- to $120 million. nanny, Yoselyn Ortega, 50. WIFE’S BROTHER manager, slightlyhunched paler than and he more was whenfind the two of her children, a 2-year- When Ms. Krim returned ZHANG JIANMING Mr. Obama’s headquartersin 2008 has beenhere replaced with manager,a slightly paler and more old boy and a 6-year-old girl, fa- around 5:30 p.m., the commis- Mr. Obama’s headquarters herehunched than campaignhe was when began. the Pointing to the find two of her children, a 2-year- SON WIFE DAUGHTER Invested in diamond in 2008 has been replacedmethodical with and a workmanlike ap- old boy andtally a 6-year-old stabbed in girl,a bathtub fa- by the sioner said, she found a dark WEN YUNSONG ZHANG BEILIWEN RUCHUN companies with his in 2008 has been replaced with a hunched than he was when the old boy and a 6-year-old girl, fa- apartment. She went back down WIFE proach to manufacturingcampaign the win- began.rows Pointing of personnel to the outside his of- family’s nanny, the authorities Co-founded a major private equity Holds sharesWIFE of a Chinese sister’s colleagues. methodical and workmanlike ap- tally stabbed in a bathtub by the to the lobby to ask the doorman if firm called New Horizon Capital. diamond company. methodical and workmanlike ap- campaign began. Pointing to the tally stabbed in a bathtub by the IsZHANG an expert BEILI in gems THE NEW YORK TIMES proach to manufacturingning coalition the win- that camerows together of personnelfice on outside Thursday, his of- he added,family’s “Ev- nanny,said. The the nanny authorities herself lay on the he had seen the nanny and her ZHANG BEILI proach to manufacturing the win- rows oferything personnel in that outside room hashis beenof- family’s nanny, the authorities children. When told that they had Is anand expert a force in gemsin the more organically and ficeenthusiasti- on Thursday, he added, “Ev- said. The nannyfloor, nearherself a bloody lay on knife, the with an not left the building, she returned Is an expert in gems ning coalition that came together fice onfocused Thursday, on that.” he added, “Ev- said. The nanny herself lay on the By DAVID BARBOZA andnation’s a force diamond in the trade. politically connected people have ning coalitioncally for that him came the last together time,erything a more in that room has been apparently self-inflicted slash to to the apartment. She looked TIMES WEB SITES ARE BLOCKED profited from being at the in- more organically and enthusiasti- floor, near a bloody knife, with an around in the quiet rooms. Fi- BEIJING — The mother of Chi- and a force in the erythingFour in that years room ago, has Mr. beenObama’s floor, near a bloody knife, with an nation’sChina blocked diamond access to trade. an article tersection of government and more organicallyarduous task and with enthusiasti- no guaranteefocused on that.” her own throat. nally, she turned the lights on in na’s prime minister was a school- cally for him the last time, a more apparently self-inflicted slash to on wealth nation’s accumulated diamond by the trade.business as state influence and focusedpolitical on that.” team here was preparingapparently self-inflicted slash to the bathroom — and discovered teacher in northern China. His fa- cally for ofhim success. the last time, a more Police Commissioner Raymond REUTERS prime minister’s family. Page A12. private wealth converge in Chi- Four years ago, Mr. Obama’s her own throat. her two children in the bathtub ther was ordered to tend pigs in arduous task with no guarantee Fourone years of its ago, trademark Mr. Obama’s showstop- na’s fast-growing economy. arduous taskAs Washingtonwith no guarantee and the cable herW. own Kelly throat. said the mother, Marina and the nanny unconscious on one of Mao’s political campaigns. political team here was preparing Police Commissioner Raymond BROTHER Unlike most new businesses in of success. politicalpers: team a half-hour here was prime-time preparing pro- Krim, had left her apartment a the floor. And during childhood,REUTERS “my fam- years later as prime minister. of success.news commentariat breathlessly Police Commissioner Raymond WEN JIAHONG REUTERS China, the family’s ventures As Washington and the cable one of its trademark showstop- W. Kelly said the mother, Marina “There were bloodcurdling ily was extremely poor,” the Many relatives of Wen Jiabao, discuss whether Mitt Romney’sone of its trademark showstop- W. blockKelly fromsaid the Central mother, Park Marina at 57 BROTHER screams from a woman,” said prime minister, Wen Jiabao, said sometimes received financial As Washington and the cablepers: a half-hour prime-timeContinued onpro- Page A23 ControlsBROTHER $200 million including his son, daughter, backing from state-owned com- news commentariat breathlessly Krim, had West left her 75th apartment Street to take a one ofWEN JIAHONG DAMON WINTER/THE NEW YORK TIMES Rima Starr, who lives down the in a speech last year. younger brother and brother-in- pers: a half-hour prime-time pro- Krim, had left her apartment a in assets, including panies, including China Mobile, news commentariat breathlessly President Obama cast his early ballotWEN Thursday JIAHONG in Chicago. hall from the victims’ second- But now 90, the prime min- law, have become extraordinarily block fromher Central children, Park a 3-year-old at 57 girl, to one of the country’s biggest discuss whether Mitt Romney’s Continued on Page A23 block from Central Park atControls 57 $200waste million treatment floor apartment. Ms. Starr also ister’s mother, Yang Zhiyun, not wealthy during his leadership, an discuss whether Mitt Romney’s phone operators, the documents Continued on Page A23West 75th a Street swimming to take lesson. one The of two oth- Controls $200 million recognized a man’s screaming only left poverty behind — she investigation by The New York in assets,plants including and recycling show. At other times, the ven- West 75th Street to take one of voice as that of the building su- became outright rich, at least on Times shows. A review of corpo- her children,er a children 3-year-old were girl, left to with the in assets, including tures won support from some of waste treatmentbusinesses. perintendent.The screams paper, according to corporate rate and regulatory records in- her children, a 3-year-oldBad Luck girl, toand Missteps Make Asia’s richest tycoons. The Times a swimmingnanny, lesson. Yoselyn The twoOrtega, oth- 50. waste treatment prompted neighbors to call 911. and regulatory records. Just one dicates that the primeWIFE’S minister’s BROTHER plants and recycling found that Mr. Wen’s relatives ac- a swimmingWhen Ms.lesson. Krim The two returned oth- plants and recycling Ms. Ortega was arrested as soon investment in her name, in a relatives, some ofZHANG whom have JIANMING a er children were left withG.O.P.’s the Senate Climb Steeper as the police arrived. She was large Chinese financial services knack for aggressive deal-mak- cumulated shares in banks, jew- er children were left with thebusinesses. elers, tourist resorts, telecom- nanny, Yoselynaround Ortega, 5:30 50. p.m., the commis- businesses. taken SON to NewYork-Presbyterian company, hadDAUGHTER a value of $120 mil- ing, including hisInvestedWIFE’S wife, have BROTHER in con- diamond nanny, Yoselyn Ortega, 50. Hospital/Weill Cornell Medical lion five years ago, the records trolled assets worth at least $2.7WIFE’Smunications BROTHER companies and in- sioner said, she found a dark WENCenter, YUNSONG where she was in critical WEN RUCHUN ZHANGcompanies JIANMING withfrastructure his projects, sometimes When Ms. Krim returned By JONATHAN WEISMAN show. billion. ZHANG JIANMING Whenapartment. Ms. She Krim went back returned down but stable condition. The details of how Ms. Yang, a In many cases,sister’s the names colleagues. of by using offshore entities. Jennifer Duffy, a SenateCo-founded political a major private equity Holds shares of a Chinese around 5:30 p.m., the commis-WASHINGTON — The Indiana SON According to the police, Ms. widow,DAUGHTER accumulated such wealth the relativesInvested have been in hidden diamondThe holdings include a villa de- aroundto the lobby 5:30 to p.m., askSenate the candidatedoorman commis- Richard if E. analyst at the nonpartisanfirm Cookcalled New HorizonSON Capital. diamond company.DAUGHTER Investedvelopment in diamond project in Beijing; a sioner said, she found a dark WEN YUNSONGKrim and her husband, Kevin, areWEN not known, RUCHUN or even if she was behind layerscompanies of partnershipsTHE NEW andwith YORK his TIMES sionerhe had said, seen she the Mourdock’s found nanny aand reintroduction dark her of Political Report. “It’s just getting hadWEN three YUNSONG children — Nessie, the aware of the holdingsWEN RUCHUN in her investment vehicles involvingcompaniestire factory with in his northern China; a apartment. children. She went When back toldrape down andthat abortion they into had the politi- a lot harder.”Co-founded a major3-year-old private who equity lived, and LuciaHoldsname. shares But it of happened a Chinese after her friends, worksister’s colleagues colleagues. and company that helped build some apartment. She wentcal dialogue back this down week is the lat- Rob Jesmer, the executiveCo-founded di- and Leo.a major Ms. Krim private wrote aequity blog son wasHolds elevated shares to China’s of rul-a Chinesebusiness partners. Untanglingsister’sof colleagues. Beijing’s Olympic stadiums, in- to the lobby to ask the doormanest in a if series of political mis- rector of thefirm National called Republican New Horizon Capital. diamond company. to thenot leftlobby the to building, ask the she doorman returned if By DAVID BARBOZAfirm calledwhere New she documentedHorizon Capital.“life with ing elite, firstdiamond in 1998 company. as vicepoliticallytheir financial connected holdingsTHE NEW providespeople YORK TIMEScludinghave the well-known “Bird’s he had seen the nanny andsteps herthat have made the Repub- Senatorial Committee, said ContinuedBy on Page DAVID A3 primeBARBOZA minister and then five an unusually detailed look at howTHE NEWContinued YORK TIMES on Page A14 he to had the seen apartment. the lican nanny quest She to and seize looked hercontrol of the Thursday that Republican candi- TIMES WEB SITES ARE BLOCKED profited from being at the in- children. Whenaround told in that the they quietSenate had a steeper rooms. climb. Fi- BEIJINGdates were — within The reach mother of vic- of Chi- children. When told that they had tory in 10 to 12 competitive races, China blocked access to an article tersection of government and not left the nally,building, she sheturned returned theOnce lights viewed ason likely in to na’s win prime minister was a school- not left the building,the Senate,she returned Republicans areBy now DAVIDwith Mr. BARBOZA Romney’s improvement onBEIJING wealth accumulatedbecame by theoutrightpoliticallybusiness rich, connected as stateat least influencepeople on have paper, and accord- to the apartment.the bathroom She — in looked and jeopardy discovered of losing seatsteacher in in theBy in polls DAVIDnorthern lifting candidatesBARBOZA China. in HisCiti fa-TIMES Chairman WEB SITES AREIs Said BLOCKED to Have Plannedpolitically Chief’s connected Exit people Over have Months to the apartment. She looked states that were out of play six prime minister’s family. Page A12.profitedprivate from wealth being converge at the in Chi- in- around in her the two quiet children rooms.Massachusetts in Fi- the bathtub andhBEIJING e Maine. motherther If — was The ordered ofmother C hina’sto of tend Chi- pigsprime in ministerTIMES WEB SITESing ARE to BLOCKEDcorporateprofited and regulatory from being atrecords. the in- Just around in the quietthey do, rooms. they will need Fi- to win atBEIJINGweeks ago. — The mother ofChina Chi- blocked accessthird to an release article stated Mr.tersection Panditna’s fast-growing of government economy. a and longtime lieutenant. nally, she turnedand the the nanny lights least unconscious on five in seatsna’s held on byprime Demo-one minister ofBut Mao’s time iswas politicaldwindling. a school- Thecampaigns. im- By JESSICA SILVER-GREENBERGChina blockedhad access been fired to withoutan article cause. tersection of government“Vikram has and offered his resig- was ana’s schoolteacherplications prime for minister the next two was yearsin anorthern school- China. one investmentUnlike in her most name, new businesses in a large in Chinese nally,the floor.she turned thecrats andlights hold three on other in Repub-And during childhood, “my fam-onand wealth SUSANNE CRAIG accumulatedThe choice by was thehis. business as state influence nation, and and we would like to give the bathroom — and discoveredlican seats at riskteacher to net the three in northerncannot be overstated. China. If His Mr. Oba- fa- yearson later wealth as prime accumulatedThe minister. abrupt encounter, by the de- business as state influenceyou the opportunity and to offer the bathroom — and discoveredHis fatherteacher wasin northern ordered China. to HisVikramprime tend fa- Pandit’s minister’s pigs last day infamily. at financial Page A12. servicesprivateChina, wealth company, the convergefamily’s had ventures in Chi-a value of $120 “There wereneeded bloodcurdling to take thether Senate was if Mittily ordered ma was wins extremelyato second tend term, pigs his poor,” hand in the Many relativesscribed of Wen by three Jiabao, people briefed private wealth convergeyours,” a inboard Chi- member said, fol- her two children in the bathtubT would be much strengthened by Citigroup swungprime from celebra-minister’s family. Page A12.sometimes received financial herscreams two children from aRomney in woman,” the wins bathtub the presidency. said therprime was minister, ordered Wen to Jiabao, tend pigssaid in on the conversation, includedna’s afast-growing economy. lowing a script prepared by the and the nanny unconsciousIf Presidentone on of one Obama Mao’s of prevails, Mao’s politicala political Democratic-led campaigns. campaigns. Senate, even a tory to devastatingAndincluding during in a matter his of terse son,million comment daughter, by thefive chairman, yearsna’s ago, fast-growing the records economy.board’s show. lawyers, according to DAMON WINTER/THE NEW YORK TIMES one of Mao’s political campaigns. backing from state-owned com- andRima the Starr, nanny who unconsciousRepublicans lives down will have the on to winin at a speechnarrowly divided last year. one, as opposed minutes. Havingyounger fielded congrat- brotherMichael and E.brother-in- O’Neill: “The boardUnlike most new businessesseveral in people with knowledge of the floor. And during to childhood, unified Republican “my majorities fam- ulatoryyears e-mails later about as the prime earn- minister. panies, Unlike including most China new Mobile, businesses in President Obama cast his early ballot Thursday in Chicago. thehall floor. from the victims’least childhood, one additional second- seat “my inAnd aBut duringfamily now 90, childhood, was the primeextremely “my min- fam- law,poor,”years have laterthebecome ashas primeextraordinarily lost confidence Theminister. in you.”detailsChina, of the how family’s Ms. Yang, venturesthe meeting.a widow, ac- “There were bloodcurdlingstate where theyily are was seen as extremelyin the House and poor,” the Senate. the ings reportMany in therelatives morning that of WenA stunned Jiabao, Mr. Pandit choseone to ofChina, the country’s the family’s biggestStartled, ventures Mr. Havens briefly “Therefloor apartment. were slightly Ms.bloodcurdlingprime behind Starr — in alsominister, Connecticut,ilyister’s wasAt mother,Wen the moment, extremely Jiabao, Yang Democrats Zhiyun, poor,”are saidsuggested not thein thewealthya bank speechMany was during finally relatives hisresign cumulatedleadership, immediately. of Wen Even anJiabao,sometimes thoughsuch wealth received are not financial known,challenged the directors,or even pointing screams from a woman,” said prime minister,given littleWen chance Jiabao, of winning said the on more solid ground, Mr. Pandit phonesometimes operators, the received documentsto the solid financial performance of the in- recognized a man’sFlorida, Ohio screaming or Pennsylvania.only left poverty behind — sheincluding his son,Mr. Pandit daughter, and the board have CARLOS OSORIO/ASSOCIATED PRESS screams from a woman,” said prime minister, Wen Jiabao,strode said into theinvestigation officeincluding of the chair- by his The son, New Yorkdaughter,backing from state-owned com- DAMON WINTER/THE NEW YORK TIMES Rima Starr, who lives down“Republicans last the year. in can a dospeech it,” said last year.Continued on Page A22 younger brother andpublicly brother-in-if shecharacterized was his exitawareshow. as Vikram backing At of S. other Panditthe from times,holdings state-owned the stitutional ven- in her clients com- group,name. and then DAMON WINTER/THE NEW YORK TIMES Rimavoice Starr, as that who of lives the building down the su- inbecame a speech outright last year.rich, at leastman on at day’sTimes endyounger on shows. Oct. 15 for brother A hisreview decision, and of interviews corpo- brother-in- withpanies, peo- including China Mobile,relented, saying his resignation President Obama cast his early ballot Thursday in Chicago. hall from perintendent.The the victims’ second- screamsBut now 90, the prime min- what he considered just another ple close to the board describetures panies, won support including from some Chinawould of be Mobile, on Mr. Pandit’s desk hall from the victims’ second-But nowpaper, But90, now accordingthe 90,prime the to prime corporateminister’s law, min- haverate mother, become and regulatory extraordinarily But records it happened in- tive’s after ouster, they her say, first son meet- was elevated to PresidentBad Obama Luck cast his earlyand ballot Missteps Thursday in Chicago. Makefloor apartment. Ms. Starr also ister’s ELECTION mother, Yang2012 Zhiyun, not of their frequentlaw, meetings have on his becomehow the extraordinarily chairman maneuveredoneAsia’s of richest the country’s tycoons. The biggest Timeswithin five minutes. floorprompted apartment. neighbors Ms. Starr to call also 911. ister’sand regulatory mother, records. Yang Zhiyun, Justcalendar. onewealthy notdicates during that his the leadership, behindprime the minister’s scenes an for months ingone privately of with the less-satisfied country’sThe dramatic biggest boardroom coup Yang Zhiyun, not only left poverty behind,wealthy she during China’s his leadership, rulingphone foundan elite,board operators, that members Mr.first Wen’s and the in then documentsrelatives draw-1998at as theac- bank’s vice Park primeAvenue head- recognized Ms. a Ortega man’s was screaming $2arrested BILLION CAMPAIGN asonly soonPresident leftinvestment povertyObama and Mitt behind Romney in her are — each name, she on inInstead,investigation a Mr.relatives, Pandit, the by some chief The ahead of New whom of that York have day to forcea Mr. phone operators, the documents recognized a man’space to raise screaming more than $1 billiononly with their left parties poverty by Election behindDay. executive — she of Citigroup,investigation was told Pandit by out The and replace New him show. York withcumulated ing At in otherothers shares until times, Mr. inPandit banks,the had ven-quarters jew- has rankled some peo- G.O.P.’s Senate Climb Steepervoice as thatas ofthe the police building arrived. su- Shebecame was large outright Chinese rich, financialat least on servicesthree newsknack releases were for ready. aggressiveMichael L. deal-mak- Corbat, the board’s virtuallyshow. no allies At left. other times,ple at Citi, the especially ven- senior exec- BY NICHOLAS CONFESSORE AND JO CRAVEN MCGINTY, PAGE A18 Times shows. A review of corpo- voice as that of the building su- became outright rich, at least on Times shows. A review of corpo-tureselers, won As tourist Mr. support Pandit was resorts, fromreeling from some telecom-utives of who feel that the action perintendent.Thetaken to NewYork-Presbyterian screams paper, accordingcompany, had to a value corporate of $120One mil-rate stated and ing, that Mr. including regulatory Pandit had hischosen recordswife, successor. have in- con- tures won support from some of Bad Luck and Missteps Make perintendent.TheHospital/Weill CornellCLIMATE CHANGE screams MedicalBoth presidentialpaper, candidates according agree that the world to is corporateresigned, effectiverate immediately. and regulatoryOnce he became records chairmanAsia’s thismunications in- richesthis encounter, tycoons. companiesthree board The mem- andTimeswas in-needlessly ruthless and who Bad Luck and Missteps Makeprompted neighbors to callwarming 911. and thatand humans regulatory are lionat least fivepartly records. to years blame, but ago, Justneither the cam-one recordsAnotherdicates thattrolled he that would assetstheresign, prime ef- worthyear, minister’s Mr. at O’Neill, least 66, $2.7meticulously bersAsia’s confronted richest John Havens, tycoons. the spoke The only Times on the condition that promptedCenter, where neighbors shepaign was is to talking in call criticalabout 911. solutions.andBY JOHN regulatory M. BRODER, PAGE records. A18 Justfective one at the enddicates of the year. that The builtthe a prime case for theminister’s chieffound execu-frastructure thatbank’s Mr. chief operatingWen’s projects, officerrelatives sometimes and ac-Continued on Page B7 By JONATHAN WEISMAN Ms. Ortega was arrested as soon investmentshow. in her name, in a relatives,billion. some of whom have a found that Mr. Wen’s relatives ac- Ms.but Ortega stable wascondition. arrested as soon investment in her name, in a relatives, some of whom havecumulatedby a using offshore shares inentities. banks, jew- G.O.P.’s Senate Climb Steeper as the police arrived. She was large ChineseThe details financial of how services Ms. Yang,knack a forIn many aggressive cases, deal-mak- the names of cumulated shares in banks, jew- G.O.P.’sWASHINGTON Senate — The Indiana ClimbJennifer Duffy, Steeper a Senate politicalas theAccording police arrived. to the police, She was Ms. largewidow, Chineseaccumulated financial such wealth services knack for aggressive deal-mak-elers,The tourist holdings resorts, include telecom-a villa de- taken to NewYork-PresbyterianOBITUARIES A30-31company, had a valueBUSINESS of DAY $120 B1-8 mil- ing, includingtheSPORTSFRIDAY relatives his wife, B9-15 have have been con- hidden elers, tourist resorts, telecom- Senate candidate Richard E. analyst at the nonpartisan CooktakenKrim to and NewYork-Presbyterian her husband, Kevin, company,are not known, had ora value even ifof she $120 was mil- ing, including his wife, have con-velopment project in Beijing; a Hospital/Weill Cornell MedicalJacques Barzun,lion Historian five years ago,Publishers the Plan records to Mergetrolledbehind assetsGiants layers Win worth Tight of partnerships atGame least $2.7 andmunications companies and in- Mourdock’s reintroduction of Political Report. “It’s just gettingHospital/Weillhad three children Cornell — Nessie, Medical the lionaware five of years the holdings ago, the in records her investmenttrolled assets vehicles worth involving at least $2.7tire factorymunications in northern companies China; a and in- a lot harder.” Center, where she was in Acritical wide-ranging show. Random House and Penguin, two of the A bunt was the most memorable play as frastructure projects, sometimes rape andBy JONATHANabortion into WEISMAN the politi- Center,3-year-old where who she scholar, lived, was essayist in and critical Lucia world’s largest book publishers, billion.are en- the Giants beat the Tigers, 2-0, to take a companyfrastructure that helped projects, build some sometimes By JONATHAN WEISMAN but stable condition. show.name. But it happened after her friends,billion. work colleagues andby using offshore entities. cal dialogue this week is the lat- Rob Jesmer, the executive di-butand stable Leo. condition. Ms. Krimand educator, wrote he a blogThe detailsson was of how elevatedgaged inMs. talks toYang, combine China’s a their busi- rul-In manybusinesstwo-games-to-none cases, partners. thelead in namesthe World Untangling Se- of of Beijing’sby using Olympic offshore stadiums, entities. in- WASHINGTON — The Indiana Jennifer Duffy, a Senate political was crucial to the The detailsnesses. of how Ms. Yang,PAGE B1 a ries. In many cases, PAGE the B9 names of WASHINGTONest in a series — The of Indiana political mis-Jenniferrector Duffy, of the a NationalSenate politicalRepublicanAccordingwhere to theshe documented police, Ms. “lifewidow, with accumulated such wealth the relatives have been hidden Thecluding holdings the well-knowninclude a villa “Bird’s de- analyst at the nonpartisan Cook According to thecreation police, of the dis- Ms. widow,ing elite, accumulated first in 1998 such as wealth vice theirthe financial relatives holdings have provides been hidden The holdings include a villa de- Senate candidatesteps Richard that have E.made the Repub- Senatorial Committee,Krim said and her husband, cipline Kevin, of cultural New Light on a Money Debate velopment project in Beijing; a Senate candidate Richard E. analyst at the nonpartisan Cook Krim andContinued her husband, on Page A3 Kevin,are not known,prime or minister even if andshe was then fivebehindan layersWEEKEND unusually of C1-28 partnerships detailed look and at how Continuedvelopment on projectPage A14 in Beijing; a Mourdock’s reintroductionlican quest to seize of controlPolitical of theReport.Thursday “It’s just that getting Republicanhad candi- three children — Nessie,history the and an ex- are not known,A transcript or from even the 1944 if Bretton she was behind layers of partnershipstire and factory in northern China; a Mourdock’s reintroduction of Political Report. “It’s just getting had three childrenponent — Nessie,of the the-aware the of the holdingsWoods conference, in which her laid theinvestment foun- Teddy Roosevelt, vehicles a New involving View tire factory in northern China; a rape and abortionSenate into athe steeper politi- climb.a lot harder.” dates were within reach3-year-old of vic- who lived, and Lucia aware of the holdings in her investment vehicles involvingcompany that helped build some rape and abortion into the politi- a lot harder.” 3-year-old who lived,ory that andthe West name. Lucia But it happeneddation for the after world’s hermonetary friends,system, work colleaguesThe Museum of and company that helped build some cal dialogue this weekOnce is viewed the lat- as likelyRob to Jesmer, win tory the in executive10 to 12 competitive di- and races, Leo. Ms. Krim wrote was a in blog decline, having cultivatedname. the Butwas found it happened in Washington. afterPAGE her B1 friends, workNatural History’s colleaguesof andBeijing’s Olympic stadiums, in- cal dialogue this week is the lat- Rob Jesmer, the executive di- and Leo. Ms. Krimseeds wrote of its own a undoing.son blog was PAGE elevated A30 to China’s rul- business partners. Untangling of Beijing’s Olympic stadiums, in- est in a series the of politicalSenate, Republicans mis- rector are of now the Nationalwith Mr. RepublicanRomney’s improvementwhere she documented “life with son was elevated to China’s rul- business partners.refreshed memori- Untanglingcluding the well-known “Bird’s est in a series of political mis- rector of the National Republican ing elite, first inNATIONAL 1998 A21-22 as vice their financial holdingsal to the provides 26th presi- in jeopardy of losing seats in in the polls lifting candidates inwhere she documented “life with ing elite, first in 1998 as vice their financial holdings provides cluding the well-known “Bird’s steps that have made the Repub- Senatorial Committee, said ContinuedCiti on PageChairman A3INTERNATIONALprime A4-15 Is minister Said and to then Have five an Planned unusually detailed Chief’sdent look opens at (with how a ExitContinued Over on MonthsPage A14 steps that have made the Repub- Senatorialstates that Committee, were out of play said six A Nudge for a Deficit Deal somewhat differ- lican quest to seizeMassachusetts control of the and Thursday Maine. Ifthat Republican candi- Continued onIran Page Said A3to Take Nuclearprime Step minister and then five an unusually detailed look at how Continued on Page A14 lican quest to seize control of the Thursdayweeks that ago. Republican candi- As Republicans and Democrats spar ent context), as Senate a steeper theyclimb. do, they will needdates to win were at within reach of vic- Intelligence officials say Iran hasthird virtu- releaseover deficit stated reduction, Mr. some Pandit business does the newly a longtime lieutenant. Senate a steeper climb. dates wereBut time within is dwindling. reach of The vic- im- ally completed an underground nuclear leaders are increasing pressure on renovated Hall of Once viewed least as likely five toseats win heldtory by in Demo- 10 to 12 competitive races, By JESSICA SILVER-GREENBERG had been fired without cause. “Vikram has offered his resig- Once crats viewed and ashold likely three toother win Repub-tory inplications 10 to 12 competitivefor the next tworaces, years enrichment plant, racing aheadThe despite choiceWashington was his. to reach a deal, even if it Mammals. A re- nation, and we would like to give the Senate, Republicans are now with Mr. Romney’s improvement and SUSANNEinternational CRAIG pressure and heavy eco- raises their own tax bills. PAGE A22 view. PAGE C21 the Senate,lican Republicans seats at risk toare net now the threewith Mr.cannot Romney’s be overstated. improvement If Mr. Oba- nomic sanctions. PAGEThe A6 abrupt encounter, de- you the opportunity to offer in jeopardy of losing seats in in the polls lifting candidates in in jeopardyneeded of to losingtake the seats Senate in if Mittin thema polls wins lifting a second candidates term, Citihis inhand ChairmanVikram Pandit’s last Is day Said at scribed to by NEWHave three YORK A26-30 people Planned briefed Chief’s Exityours,” Over a board Months member said, fol- Massachusetts and Maine. If states that were out of play six Citi ChairmanBritish Abuse Case IsWorsens Said to Have PlannedEDITORIAL, OP-ED A32-33 Chief’s Exit Over Months MassachusettsRomney wins and the Maine. presidency. If stateswould that bewere much out strengthened of play six by Citigroup swung from celebra- on the conversation,A Death Spurs Medical included Efforts a lowing a script prepared by the they do, they will need to win at weeks ago. tory to devastatingScotland in aYard matter calledthird Jimmy of release Savile, one stated Mr. Pandit Paul Krugman PAGE A33 a longtime lieutenant. they do, theyIf President will need Obama to win prevails,at weeksa ago. Democratic-led Senate, even a of Britain’s most popular TV hosts,thirdterse “un- comment releaseThe death statedbyof a 12-year-oldthe chairman, Mr. boy from Pandit sep- board’sa longtime lawyers, lieutenant. according to least five seats held by Demo- But time is narrowlydwindling. divided The im-one, as opposed minutes. Havingdoubtedly” fielded one congrat- ofhad the most been prolificMichael sex fired E.tic without shock O’Neill: has prompted cause. “The nationwide board ef- “Vikramseveral people has offered with knowledge his resig- of least fiveRepublicans seats held will by have Demo- to win atBut time is dwindling. TheBy im- JESSICA SILVER-GREENBERGoffenders in the nation’s recenthad history, beenforts firedby medical without personnel to head cause. off “Vikram has offered his resig- crats and hold three other Repub- plications for tothe unified next two Republican years majoritiesBy ulatoryJESSICA e-mails SILVER-GREENBERG about the The earn- choice was his. nation, and we would like to give crats andleast hold onethree additional other Repub- seat inplications a for the next two years and SUSANNE CRAIGas the number of people who saidThehas they lost choice confidenceproblems was that his. may in you.”have contributed to U(D54G1D)y+&![!,!#!? the meeting.nation, and we would like to give lican seats at riskstate to net where the three they arecannot seen be as overstated.in the House If Mr. and Oba- the Senate. ingsand report SUSANNE in thewere CRAIG morningassaulted by him thatThe rose. abruptPAGEA A12stunned his encounter, death. Mr. About Pandit New York. de- chose PAGE to A26 you Startled, the opportunity Mr. Havens to briefly offer lican seats at risk to net the three cannot be overstated. If Mr. Oba-Vikram Pandit’s last day at The abrupt encounter, de- you the opportunity to offer needed to take theslightly Senate behind if Mitt — in Connecticut,ma wins a secondAt theterm, moment, his hand Democrats are Vikramsuggested Pandit’s the bank last was day finallyscribed at resign by three immediately. people briefed Even though yours,”challenged a board the member directors, said, pointing fol- needed to take the Senate if Mitt ma wins a second term, his Citigrouphand swungon more fromsolid ground, celebra- Mr. Pandit scribed by three people briefed yours,” a board member said, fol- Florida, Ohio or Pennsylvania.would be muchgiven strengthened little chance byof winning the Mr. Pandit and the board have CARLOS OSORIO/ASSOCIATED PRESSlowingto the a solid script performance prepared of by the the in- Romney wins the presidency. would be much strengthened by Citigroup swung from celebra-on the conversation, included a lowing a script prepared by the Romney wins the presidency.a Democratic-led Senate, even a tory to devastatingstrode into in thea matter office of of the chair- onpublicly the conversation,characterized his included exit as a stitutional clients group, and then If President Obama“Republicans prevails, can do it,” saida Democratic-ledContinued Senate, on Page even A22 a tory to devastating in a matterterse of comment by the chairman, Vikram S. Pandit board’s lawyers, according to If President Obama prevails,narrowly divided one, as opposed minutes. Havingman at fielded day’s endcongrat- on Oct. 15 for tersehis decision, comment interviews by the with chairman, peo- relented,board’s saying lawyers, his resignation according to Republicans will have to win at narrowly divided one, as opposed minutes. Having fielded congrat-Michael E. O’Neill: “The board several people with knowledge of Republicans will have to winto unified at Republican majorities ulatory e-mailswhat he about considered the earn- just another Michaelple close E. to O’Neill:the board “The describe board wouldseveral be on people Mr. Pandit’s with knowledge desk of least one additional seat in a to unified Republican majorities ulatory e-mails about the has earn- lost confidence in you.” the meeting. least one additional seat in in the a ELECTIONHouse and the 2012 Senate. ings reportof in their the frequent morning meetings that on his hashow lost the confidence chairman maneuveredin you.” tive’s ouster, they say, first meet- withinthe five meeting. minutes. state where they are seen as in the House and the Senate. ings report in the morning thatA stunned Mr. Pandit chose to ing privately with less-satisfied Startled, Mr. Havens briefly state where they are seen At as the moment, Democrats are suggested calendar. the bank was finally behindA stunned the scenes Mr. Pandit for months chose to The dramaticStartled, boardroom Mr. Havens coup briefly slightly behind — in Connecticut, At the moment, Democrats are suggested the bank was finallyresign immediately. Even though board members and then draw-challengedat the bank’s the directors, Park Avenue pointing head- slightly behind$2 BILLION — inCAMPAIGN Connecticut,givenPresident little Obama chance and of Mittwinning Romney the are on each more on solidInstead, ground, Mr. Mr. Pandit,Pandit the chief resignahead ofimmediately. that day to Even force though Mr. challenged the directors, pointing Florida, Ohio or Pennsylvania. on more solid ground, Mr. PanditMr. Pandit and the board have ing CARLOSin others OSORIO/ASSOCIATED until Mr. Pandit PRESS hadto thequarters solid performance has rankled someof the peo- in- Florida, paceOhio to or raise Pennsylvania. more than $1 billiongiven with theirlittle partieschance by of Election winning Day. the executive of Citigroup, was told Mr.Pandit Pandit out and and replace the board him with have CARLOS OSORIO/ASSOCIATED PRESS to the solid performance of the in- “Republicans can do it,” said Continued on Page A22 strode into the office of the chair- publicly characterized his exit as stitutionalple at Citi, clients especially group, senior and thenexec- “RepublicansBY NICHOLAS can CONFESSORE do it,” said AND JO CRAVENContinued MCGINTY, on Page PAGE A22 A18 strodethree into news the releases office of were the chair- ready. publiclyMichael characterized L. Corbat, the his board’s exitVikram asvirtually S. Pandit no allies left. stitutional clients group, and then man at day’s end on Oct. 15 for his decision, interviews with peo- Vikram S. Pandit relented, saying his resignation manOne at stated day’s that end Mr. on Oct. Pandit 15 had for hischosen decision, successor. interviews with peo- As Mr. Pandit was reeling from utivesrelented, who feel saying that the his action resignation CLIMATE CHANGE what he considered just another ple close to the board describe wouldwas beneedlessly on Mr. ruthless Pandit’s and desk who Both presidential candidates agree that the world is whatresigned, he considered effective just immediately. another pleOnce close he became to the boardchairman describe this his encounter, three board mem- would be on Mr. Pandit’s desk warming and that humans are at least partly to blame, but neitherof their cam- frequent meetings on his how the chairman maneuvered tive’s ouster, they say, first meet- withinspoke five only minutes. on the condition that ELECTION 2012 of theirAnother frequent that he meetings would resign, on his ef- howyear, Mr. the O’Neill, chairman 66, meticulously maneuveredberstive’s confronted ouster, John they Havens, say, first the meet- within five minutes. paign is talking aboutELECTION solutions. BY JOHN 2012 M. BRODER, PAGE A18 calendar. fective at the end of the year.behind The thebuilt scenes a case for for the months chief execu-ing privatelybank’s chief with operating less-satisfied officer and The dramaticContinued boardroom on Page B7 coup calendar. behind the scenes for months ing privately with less-satisfied The dramatic boardroom coup Instead, Mr. Pandit, the chief ahead of that day to force Mr. board members and then draw- at the bank’s Park Avenue head- $2 BILLION CAMPAIGN President Obama and Mitt Romney are each on Instead, Mr. Pandit, the chief ahead of that day to force Mr. board members and then draw- at the bank’s Park Avenue head- $2 BILLION CAMPAIGN President Obama and Mitt Romney are eachexecutive on of Citigroup, was told Pandit out and replace him with ing in others until Mr. Pandit had quarters has rankled some peo- pace to raise more than $1 billion with their parties by Election Day. executive of Citigroup, was told Pandit out and replace him with ing in others until Mr. Pandit had quarters has rankled some peo- pace to raise more than $1 billion with their parties by Election Day.three news releases were ready. Michael L. Corbat, the board’s virtually no allies left. ple at Citi, especially senior exec- BY NICHOLAS CONFESSOREOBITUARIES AND A30-31 JO CRAVEN MCGINTY, PAGEBUSINESS A18 DAY B1-8 three news releasesSPORTSFRIDAY were ready. B9-15Michael L. Corbat, the board’s virtually no allies left. ple at Citi, especially senior exec- BY NICHOLAS CONFESSORE AND JO CRAVEN MCGINTY, PAGE A18 One stated that Mr. Pandit had chosen successor. As Mr. Pandit was reeling from utives who feel that the action One stated that Mr. Pandit had chosen successor. As Mr. Pandit was reeling from utives who feel that the action CLIMATE CHANGEJacquesBoth presidential Barzun, candidates Historian agree that thePublishers world is Planresigned, to Merge effective immediately.Giants WinOnce Tight he Game became chairman this his encounter, three board mem- was needlessly ruthless and who CLIMATE CHANGE Both presidential candidates agree that the world is resigned, effective immediately. Once he became chairman this his encounter, three board mem- was needlessly ruthless and who warming and that humans are at least partly to blame, but neither cam- Another that he would resign, ef- year, Mr. O’Neill, 66, meticulously bers confronted John Havens, the spoke only on the condition that warmingA and wide-ranging that humans are at least partly to blame,Random but Houseneither and cam- Penguin,Another two of thethat he wouldA bunt wasresign, the mostef- memorableyear, Mr. O’Neill, play as 66, meticulously bers confronted John Havens, the spoke only on the condition that paign is talking aboutscholar, solutions. essayistBY JOHN M. BRODER, PAGE A18world’s largest bookfective publishers, at the endare en- of the year.the Giants The beatbuilt the a Tigers, case for2-0, to the take chief a execu- bank’s chief operating officer and Continued on Page B7 paign is talking about solutions. BY JOHN M. BRODER, PAGE A18 fective at the end of the year. The built a case for the chief execu- bank’s chief operating officer and Continued on Page B7 and educator, he gaged in talks to combine their busi- two-games-to-none lead in the World Se- was crucial to the nesses. PAGE B1 ries. PAGE B9 creation of the dis- OBITUARIES A30-31 BUSINESS DAY B1-8 SPORTSFRIDAY B9-15 OBITUARIEScipline A30-31 of cultural BUSINESSNew Light DAY B1-8 on a Money Debate SPORTSFRIDAYWEEKEND C1-28 B9-15 Jacques Barzun,history Historian and an ex- Publishers APlan transcript to Merge from the 1944 BrettonGiants Win Tight Game Jacquesponent Barzun, of the the- Historian PublishersWoods conference, Plan to which Merge laid the foun- GiantsTeddy WinRoosevelt, Tight a Game New View A wide-ranging Random House and Penguin, two of the A bunt was the most memorable play as A wide-rangingory that the West Randomdation House for the and world’s Penguin, monetary two of system, the A bunt was the most memorableThe Museum play of as scholar, essayist world’s largest book publishers, are en- the Giants beat the Tigers, 2-0, to take a scholar, essayistwas in decline, having cultivated the world’swas largest found in book Washington. publishers, arePAGE en- B1 the Giants beat the Tigers,Natural 2-0, History’s to take a and educator, he gaged in talks to combine their busi- two-games-to-none lead in the World Se- and educator,seeds of he its own undoing. PAGE A30gaged in talks to combine their busi- two-games-to-none leadrefreshed in the memori-World Se- was crucial to the nesses. PAGE B1 ries. PAGE B9 was crucial to the nesses.NATIONAL A21-22 PAGE B1 ries. al to the 26thPAGE presi- B9 creation of the dis- creation INTERNATIONALof the dis- A4-15 dent opens (with a cipline of cultural New Light on a Money Debate cipline of cultural NewA Light Nudge on for a aMoney Deficit Debate DealWEEKEND C1-28 somewhat differ- history and an ex-Iran Said to Take NuclearAtranscript Step fromAs Republicans the 1944 Bretton and Democrats spar WEEKEND C1-28 ent context), as history and an ex- A transcript from the 1944 Bretton ponent of the the-Intelligence officials say Iran hasWoods virtu- conference,over deficit which reduction, laid the foun- some businessTeddy Roosevelt, a Newdoes View the newly ponent of the the- Woods conference, which laid the foun- Teddy Roosevelt, a New View ory that the Westally completed an undergrounddation nuclear for the leadersworld’s are monetary increasing system, pressure on The Museumrenovated of Hall of ory that the West dation for the world’s monetary system, TheMammals. Museum A re- of was in decline, havingenrichment cultivated plant, the racing aheadwas despite found in Washington.Washington to reachPAGE a deal, B1 even if it Natural History’s was in decline,international having pressure cultivated and the heavy eco- was foundraises intheir Washington. own tax bills. PAGEPAGE B1 A22 Naturalview. History’sPAGE C21 seeds of its own undoing. PAGE A30 refreshed memori- seeds of nomicits own sanctions. undoing. PAGE A30PAGE A6 refreshed memori- NATIONAL A21-22 al to the 26th presi- NATIONALNEW YORK A21-22 A26-30 al to the 26th presi- INTERNATIONAL A4-15 EDITORIAL,dent OP-ED opens A32-33 (with a INTERNATIONALBritish Abuse A4-15 Case Worsens dent opens (with a A Nudge for a Deficit Deal somewhat differ- Scotland Yard called Jimmy Savile, one A NudgeA Death for Spurs a Deficit Medical Deal Efforts Paul Krugman somewhatPAGE differ- A33 Iran Said to Take Nuclear Step As Republicans and Democrats spar ent context), as Iran Saidof Britain’s to Take most Nuclear popular TV Step hosts, “un-As RepublicansThe death of and a 12-year-old Democrats boy spar from sep- ent context), as Intelligence officials say Iran has virtu- over deficit reduction, some business does the newly Intelligencedoubtedly” officials one say of Iran the most has virtu-prolific sex over deficittic shock reduction, has prompted some nationwide business ef- does the newly ally completed an underground nuclear leaders are increasing pressure on renovated Hall of ally completedoffenders an in underground the nation’s recent nuclear history, leadersforts are by increasing medical personnel pressure to onhead off renovated Hall of enrichment plant, racing ahead despite Washington to reach a deal, even if it Mammals. A re- enrichmentas the plant, number racing of people ahead who despite said they Washingtonproblems to that reach may a deal,have contributedeven if it to U(D54G1D)y+&![!,!#!?Mammals. A re- international pressurewere assaulted and heavy by eco- him rose. raisesPAGE A12their ownhis taxdeath. bills. About NewPAGE York. A22 PAGE A26 view. PAGE C21 international pressure and heavy eco- raises their own tax bills. PAGE A22 view. PAGE C21 nomic sanctions. PAGE A6 nomic sanctions. PAGE A6 NEW YORK A26-30 EDITORIAL, OP-ED A32-33 BritishBritish Abuse AbuseCase Worsens Case Worsens NEW YORK A26-30 EDITORIAL, OP-ED A32-33 Scotland Yard called Jimmy Savile, one A Death Spurs Medical Efforts Paul Krugman PAGE A33 Scotland Yard called Jimmy Savile, one A Death Spurs Medical Efforts Paul Krugman PAGE A33 of Britain’s most popular TV hosts, “un- The death of a 12-year-old boy from sep- of Britain’s most popular TV hosts, “un- The death of a 12-year-old boy from sep- doubtedly” one of the most prolific sex tic shock has prompted nationwide ef- doubtedly” one of the most prolific sex tic shock has prompted nationwide ef- offenders in the nation’s recent history, forts by medical personnel to head off offenders in the nation’s recent history, forts by medical personnel to head off as the number of people who said they problems that may have contributed to as the number of people who said they problems that may have contributed to U(D54G1D)y+&![!,!#!? were assaulted by him rose. PAGE A12 his death. About New York. PAGE A26 U(D54G1D)y+&![!,!#!? were assaulted by him rose. PAGE A12 his death. About New York. PAGE A26 minister and then five years later as prime min- makes its deliberations public, it is not known ister. what role — if any — Mr. Wen, who is 70, has Many relatives of Wen Jiabao, including his played in most policy or regulatory decisions. son, daughter, younger brother and brother- But in some cases, his relatives have sought in-law, have become extraordinarily wealthy to profit from opportunities made possible by during his leadership, an investigation by The those decisions. New York Times shows. A review of corporate The prime minister’s younger brother, for and regulatory records indicates that the prime example, has a company that was awarded minister’s relatives — some of whom, including more than $30 million in government contracts his wife, have a knack for aggressive deal mak- and subsidies to handle wastewater treatment ing — have controlled assets worth at least $2.7 and medical waste disposal for some of China’s billion. biggest cities, according to estimates based on In many cases, the names of the relatives government records. The contracts were an- have been hidden behind layers of partnerships nounced after Mr. Wen ordered tougher regula- and investment vehicles involving friends, work tions on medical waste disposal in 2003 after the colleagues and business partners. Untangling SARS outbreak. their financial holdings provides an unusually In 2004, after the State Council, a govern- detailed look at how politically connected peo- ment body Mr. Wen presides over, exempted ple have profited from being at the intersection Ping An Insurance and other companies from of government and business as state influence rules that limited their scope, Ping An went on and private wealth converge in China’s fast- to raise $1.8 billion in an initial public offering of growing economy. stock. Partnerships controlled by Mr. Wen’s rel- Unlike most new businesses in China, the atives — along with their friends and colleagues family’s ventures sometimes received financial — made a fortune by investing in the company backing from state-owned companies, includ- before the public offering. ing China Mobile, one of the country’s biggest In 2007, the last year the stock holdings phone operators, the documents show. At other were disclosed in public documents, those part- times, the ventures won support from some of nerships held as much as $2.2 billion worth of Asia’s richest tycoons. The Times found that Mr. Ping An stock, according to an accounting of the Wen’s relatives accumulated shares in banks, investments by The Times that was verified by jewelers, tourist resorts, telecommunications outside auditors. Ping An’s overall market val- companies and infrastructure projects, some- ue is now nearly $60 billion. times by using offshore entities. Ping An said in a statement that the compa- The holdings include a villa development ny did “not know the background of the entities project in Beijing; a tire factory in northern behind our shareholders.” The statement said, China; a company that helped build some of “Ping An has no means to know the intentions Beijing’s Olympic stadiums, including the well- behind shareholders when they buy and sell our known “Bird’s Nest”; and Ping An Insurance, shares.” one of the world’s biggest financial services While Communist Party regulations call companies. for top officials to disclose their wealth and that As prime minister in an economy that re- of their immediate family members, no law or mains heavily state-driven, Mr. Wen, who is best regulation prohibits relatives of even the most known for his simple ways and common touch, senior officials from becoming deal-makers or more importantly has broad authority over the major investors — a loophole that effectively al- major industries where his relatives have made lows them to trade on their family name. Some their fortunes. Chinese companies cannot list Chinese argue that permitting the families of their shares on a stock exchange without ap- Communist Party leaders to profit from the proval from agencies overseen by Mr. Wen, for country’s long economic boom has been impor- example. He also has the power to influence in- tant to ensuring elite support for market-orient- vestments in strategic sectors like energy and ed reforms. telecommunications. Even so, the business dealings of Mr. Wen’s Because the Chinese government rarely relatives have sometimes been hidden in ways C M Y K Nxxx,2012-10-26,A,014,Bs-BK,E2

A14 Ø N THE NEW YORK TIMES INTERNATIONAL FRIDAY, OCTOBER 26, 2012 Billions in Hidden Riches for Family of China’s Premier then helped them reinvest in other lu- From Page A1 crative ventures, like real estate and fi- Nest”; and Ping An Insurance, one of nance. the world’s biggest financial services According to corporate records and companies. interviews, the businessmen often sup- As prime minister in an economy that plied accountants and office space to in- remains heavily state-driven, Mr. Wen, vestment partnerships partly controlled who is best known for his simple ways by the relatives. and common touch, more importantly “When they formed companies,” said has broad authority over the major in- one businessman who set up a company dustries where his relatives have made with members of the Wen family, “Ms. their fortunes. Chinese companies can- Zhang stayed in the background. That’s not list their shares on a stock exchange how it worked.” without approval from agencies over- seen by Mr. Wen, for example. He also The Only Son has the power to influence investments in strategic sectors like energy and tele- Late one evening early this year, the communications. prime minister’s only son, Wen Yun- Because the Chinese government song, was in the cigar lounge at Xiu, an rarely makes its deliberations public, it upscale bar and lounge at the Park Hy- is not known what role — if any — Mr. att in Beijing. He was having cocktails Wen, who is 70, has played in most pol- as Beijing’s nouveau riche gathered icy or regulatory decisions. But in some around, clutching designer bags and cases, his relatives have sought to profit wearing expensive business suits, ac- from opportunities made possible by cording to two guests who were those decisions. present. The prime minister’s younger broth- In China, the children of senior lead- er, for example, has a company that was ers are widely believed to be in a class awarded more than $30 million in gov- of their own. Known as “princelings,” ernment contracts and subsidies to they often hold Ivy League degrees, get handle wastewater treatment and med- V.I.P. treatment, and are even offered ical waste disposal for some of China’s preferred pricing on shares in hot stock biggest cities, according to estimates offerings. based on government records. The con- They are also known as people who tracts were announced after Mr. Wen can get things done in China’s heavily ordered tougher regulations on medical regulated marketplace, where the state waste disposal in 2003 after the SARS controls access. And in recent years, outbreak. few princelings have been as bold as the In 2004, after the State Council, a gov- younger Mr. Wen, who goes by the Eng- ernment body Mr. Wen presides over, lish name Winston and is about 40 years exempted Ping An Insurance and other old. companies from rules that limited their A Times review of Winston Wen’s in- scope, Ping An went on to raise $1.8 bil- vestments, and interviews with people lion in an initial public offering of stock. who have known him for years, show Partnerships controlled by Mr. Wen’s that his deal-making has been extensive relatives — along with their friends and and lucrative, even by the standards of colleagues — made a fortune by in- his princeling peers. vesting in the company before the pub- State-run giants like China Mobile lic offering. LINTAO ZHANG/GETTY IMAGES have formed start-ups with him. In re- In 2007, the last year the stock hold- cent years, Winston Wen has been in ings were disclosed in public docu- talks with Hollywood studios about a fi- ments, those partnerships held as much nancing deal. as $2.2 billion worth of Ping An stock, Concerned that China does not have according to an accounting of the in- an elite boarding school for Chinese stu- vestments by The Times that was ver- dents, he recently hired the headmas- ified by outside auditors. Ping An’s ters of Choate and Hotchkiss in Con- overall market value is now nearly $60 necticut to oversee the creation of a $150 billion. million private school now being built in Ping An said in a statement that the the Beijing suburbs. company did “not know the background Winston Wen and his wife, moreover, of the entities behind our sharehold- have stakes in the technology industry ers.” The statement said, “Ping An has and an electric company, as well as an no means to know the intentions behind indirect stake in Union Mobile Pay, the shareholders when they buy and sell government-backed online payment our shares.” platform — all while living in the prime MARK RALSTON/AGENCE FRANCE-PRESSE — GETTY IMAGES While Communist Party regulations minister’s residence, in central Beijing, call for top officials to disclose their Prime Minister Wen Jiabao, middle, delivered a toast last month at a government banquet. Top, according to corporate records and peo- wealth and that of their immediate fam- a $150 million private school is being built in the Beijing suburbs. Bottom left, Mr. Wen with his ple familiar with the family’s invest- ily members, no law or regulation pro- family in the 1980s. Bottom right, the “Bird’s Nest” stadium for the Beijing Olympics. ments. hibits relatives of even the most senior “He’s not shy about using his influ- officials from becoming deal-makers or ence to get things done,” said one ven- major investors — a loophole that ef- ture capitalist who regularly meets with fectively allows them to trade on their want to be written about,” Ms. Duan It is no secret in China’s elite circles dent of the World Jewelry Confeder- Winston Wen. family name. Some Chinese argue that said, “so I had my relatives find some that the prime minister’s wife, Zhang ation in Switzerland. “She was bridging The younger Mr. Wen declined to permitting the families of Communist other people to hold these shares for Beili, is rich, and that she has helped relations between partners — Chinese comment. But in a telephone interview, Party leaders to profit from the coun- me.” control the nation’s jewelry and gem and foreign partners.” his wife, Yang Xiaomeng, said her hus- try’s long economic boom has been im- But it was an “accident,” she said, trade. But her lucrative diamond busi- As early as 1992, people who worked band had been unfairly criticized for his portant to ensuring elite support for that her company chose the relatives of nesses became an off-the-charts suc- with Ms. Zhang said, she had begun to business dealings. market-oriented reforms. the prime minister as the listed share- cess only as her husband moved into blur the line between government offi- “Everything that has been written Even so, the business dealings of Mr. holders — a process that required regis- the country’s top leadership ranks, the cial and businesswoman. As head of the about him has been wrong,” she said. Wen’s relatives have sometimes been tering their official ID numbers and ob- review of corporate and regulatory state-owned China Mineral and Gem “He’s really not doing that much busi- hidden in ways that suggest the rela- taining their signatures. Until pre- records by The Times found. Corporation, she began investing the ness anymore.” tives are eager to avoid public scrutiny, sented with the names of the investors A geologist with an expertise in gem- state company’s money in start-ups. Winston Wen was educated in Beijing the records filed with Chinese regula- by The Times, she said, she had no idea stones, Ms. Zhang is largely unknown And by the time her husband was and then earned an engineering degree tory authorities show. Their ownership that they had selected the relatives of among ordinary Chinese. She rarely named vice premier, in 1998, she was from the Beijing Institute of Technology. stakes are often veiled by an intricate Wen Jiabao. travels with the prime minister or ap- busy setting up business ventures with He went abroad and earned a master’s web of holdings as many as five steps The review of the corporate and regu- pears with him, and there are few offi- friends and relatives. degree in engineering materials from the University of Windsor, in Canada, removed from the operating companies, latory records, which covers 1992 to cial photographs of the couple together. The state company she ran invested and an M.B.A. from the Kellogg School according to the review. 2012, found no holdings in Mr. Wen’s And while people who have worked in a group of affiliated diamond compa- of Business at Northwestern University In the case of Mr. Wen’s mother, The name. And it was not possible to de- with her say she has a taste for jade and nies, according to public records. Many in Evanston, Ill., just outside Chicago. Times calculated her stake in Ping An termine from the documents whether fine diamonds, they say she usually of them were run by Ms. Zhang’s rela- When he returned to China in 2000, he — valued at $120 million in 2007 — by he recused himself from any decisions dresses modestly, does not exude glam- tives — or colleagues who had worked helped set up three successful technol- examining public records and govern- that might have affected his relatives’ our and prefers to wield influence be- with her at the National Gemstone Test- ogy companies in five years, according ment-issued identity cards, and by fol- holdings, or whether they received hind the scenes, much like the relatives ing Center. to people familiar with those deals. Two lowing the ownership trail to three Chi- preferential treatment on investments. of other senior leaders. In 1993, for instance, the state compa- of them were sold to Hong Kong busi- nese investment entities. The name re- For much of his tenure, Wen Jiabao The State Department documents re- ny Ms. Zhang ran helped found Beijing nessmen, one to the family of Li Ka- corded on his mother’s shares was Tai- has been at the center of rumors and leased by WikiLeaks included a sugges- Diamond, a big jewelry retailer. A year shing, one of the wealthiest men in Asia. hong, a holding company registered in conjecture about efforts by his relatives tion that Mr. Wen had once considered later, one of her younger brothers, Winston Wen’s earliest venture, an Tianjin, the prime minister’s home- to profit from his position. Yet until the divorcing Ms. Zhang because she had Zhang Jianming, and two of her govern- Internet data services provider called town. review by The Times, there has been no exploited their relationship in her dia- ment colleagues personally acquired 80 Unihub Global, was founded in 2000 The apparent efforts to conceal the detailed accounting of the family’s rich- mond trades. Taiwanese television re- percent of the company, according to with $2 million in start-up capital, ac- wealth reflect the highly charged poli- es. ported in 2007 that Ms. Zhang had shareholder registers. Beijing Diamond tics surrounding the country’s ruling His wife, Zhang Beili, is one of the cording to Hong Kong and Beijing cor- bought a pair of jade earrings worth invested in Shenzhen Diamond, which porate filings. Financing came from a elite, many of whom are also enormous- country’s leading authorities on jewelry about $275,000 at a Beijing trade show, was controlled by her brother-in-law, ly wealthy but reluctant to draw atten- and gemstones and is an accomplished tight-knit group of relatives and his though the source — a Taiwanese trad- Wen Jiahong, the prime minister’s mother’s former colleagues from gov- tion to their riches. When Bloomberg businesswoman in her own right. By er — later backed off the claim and Chi- younger brother. News reported in June that the ex- managing state diamond companies ernment and the diamond trade, as well nese government censors moved swift- Among the successful undertakings as an associate of Cheng Yu-tung, patri- tended family of Vice President Xi Jin- that were later privatized, The Times ly to block coverage of the subject in was Sino-Diamond, a venture financed ping, set to become China’s next presi- found, she helped her relatives parlay arch of Hong Kong’s second-wealthiest China, according to news reports at the by the state-owned China Mineral and family. The firm’s earliest customers dent, had amassed hundreds of millions their minority stakes into a billion-dol- time. Gem Corporation, which she headed. of dollars in assets, the Chinese govern- lar portfolio of insurance, technology were state-owned brokerage houses “Her business activities are known to The company had business ties with a and Ping An, in which the Wen family ment blocked access inside the country and real estate ventures. everyone in the leadership,” said one state-owned company managed by an- to the Bloomberg Web site. The couple’s only son sold a technol- has held a large financial stake. banker who worked with relatives of other brother, Zhang Jiankun, who He made an even bolder move in “In the senior leadership, there’s no ogy company he started to the family of Wen Jiabao. The banker said it was not worked as an official in Jiaxing, Ms. family that doesn’t have these prob- Hong Kong’s richest man, Li Ka-shing, 2005, by pushing into private equity unusual for her office to call upon busi- Zhang’s hometown, in Zhejiang Prov- when he formed New Horizon Capital lems,” said a former government col- for $10 million, and used another in- nesspeople. “And if you get that call, ince. league of Wen Jiabao who has known vestment vehicle to establish New Hori- with a group of Chinese-born class- how can you say no?” In the summer of 1999, after securing mates from Northwestern. The firm him for more than 20 years and who zon Capital, now one of China’s biggest Zhang Beili first gained influence in agreements to import diamonds from spoke on the condition of anonymity. quickly raised $100 million from invest- private equity firms, with partners like the 1990s, while working as a regulator Russia and South Africa, Sino-Diamond “His enemies are intentionally trying to ors, including SBI Holdings, a division the government of Singapore, accord- at the Ministry of Geology. At the time, went public, raising $50 million on the smear him by letting this leak out.” ing to records and interviews with of the Japanese group SoftBank, and China’s jewelry market was still in its Shanghai Stock Exchange. The offering Temasek, the Singapore government in- The Times presented its findings to bankers. infancy. netted Ms. Zhang’s family about $8 mil- the Chinese government for comment. vestment fund. The prime minister’s younger broth- While her husband was serving in lion, according to corporate filings. The Foreign Ministry declined to re- Under Mr. Wen, New Horizon estab- er, Wen Jiahong, controls $200 million in China’s main leadership compound, Although she was never listed as a spond to questions about the invest- lished itself as a leading private equity assets, including wastewater treatment known as Zhongnanhai, Ms. Zhang was shareholder, former colleagues and ments, the prime minister or his rela- plants and recycling businesses, the firm, investing in biotech, solar, wind setting industry standards in the jew- business partners say Ms. Zhang’s ear- tives. Members of Mr. Wen’s family also records show. and construction equipment makers. elry and gem trade. She helped create ly diamond partnerships were the nu- declined to comment or did not respond Since it began operations, the firm has As prime minister, Mr. Wen has the National Gemstone Testing Center cleus of a larger portfolio of companies to requests for comment. staked out a position as a populist and a returned about $430 million to invest- in Beijing, and the Shanghai Diamond she would later help her family and col- ors, a fourfold profit, according to SBI Duan Weihong, a wealthy business- reformer, someone whom the state-run Exchange, two of the industry’s most leagues gain a stake in. Holdings. woman whose company, Taihong, was media has nicknamed “the People’s powerful institutions. The Times found no indication that the investment vehicle for the Ping An Premier” and “Grandpa Wen” because “Their first fund was dynamite,” said In a country where the state has long Wen Jiabao used his political clout to in- shares held by the prime minister’s of his frequent outings to meet ordinary Kathleen Ng, editor of Asia Private Eq- dominated the marketplace, jewelry fluence the diamond companies his rel- mother and other relatives, said the in- people, especially in moments of crisis uity Review, an industry publication in regulators often decided which compa- atives invested in. But former business vestments were actually her own. Ms. like natural disasters. Hong Kong. “And that allowed them to nies could set up diamond-processing partners said that the family’s success raise a lot more money.” Duan, who comes from the prime min- While it is unclear how much the factories, and which would gain entry to in diamonds, and beyond, was often bol- ister’s hometown and is a close friend of prime minister knows about his fam- Today, New Horizon has more than the retail jewelry market. State reg- stered with financial backing from his wife, said ownership of the shares ily’s wealth, State Department docu- $2.5 billion under management. ulators even formulated rules that re- wealthy businessmen who sought to was listed in the names of Mr. Wen’s ments released by the WikiLeaks or- Some of Winston Wen’s deal-making, quired diamond sellers to buy certif- curry favor with the prime minister’s relatives in an effort to conceal the size ganization in 2010 included a cable that though, has attracted unwanted atten- icates of authenticity for any diamond of Ms. Duan’s own holdings. suggested Mr. Wen was aware of his family. tion for the prime minister. sold in China, from the government-run “When I invested in Ping An I didn’t relatives’ business dealings and unhap- “After Wen became prime minister, In 2010, when New Horizon acquired testing center in Beijing, which Ms. py about them. his wife sold off some of her diamond in- a 9 percent stake in a company called Zhang managed. “Wen is disgusted with his family’s vestments and moved into new things,” Sihuan Pharmaceuticals just two ONLINE: WEN’S RISE IN CHINA activities, but is either unable or unwill- As a result, when executives from said a Chinese executive who did busi- months before its public offering, the ing to curtail them,” a Chinese-born ex- Cartier or De Beers visited China with ness with the family. He asked not to be Hong Kong Stock Exchange said the A video traces the life of Wen Jiabao, hopes of selling diamonds and jewelry named because of fear of government late-stage investment violated its rules the outgoing prime minister of China ecutive working at an American compa- ny in Shanghai told American diplo- here, they often went to visit Ms. Zhang, retaliation. Corporate records show that and forced the firm to return the stake. and the state-run media’s favorite mats, according to the 2007 cable. who became known as China’s “dia- beginning in the late 1990s, a series of Still, New Horizon made a $46.5 million populist leader. mond queen.” rich businessmen took turns buying up profit on the sale. nytimes.com/business “She’s the most important person large stakes in the diamond companies, Soon after, New Horizon announced China’s ‘Diamond Queen’ there,” said Gaetano Cavalieri, presi- often from relatives of Mr. Wen, and that Winston Wen had handed over day- that suggest the relatives are eager to avoid pub- relatives find some other people to hold these lic scrutiny, the records filed with Chinese regu- shares for me.” latory authorities show. Their ownership stakes But it was an “accident,” she said, that her are often veiled by an intricate web of holdings as company chose the relatives of the prime minis- many as five steps removed from the operating ter as the listed shareholders — a process that companies, according to the review. required registering their official ID numbers In the case of Mr. Wen’s mother, The Times and obtaining their signatures. Until presented calculated her stake in Ping An — valued at $120 with the names of the investors by The Times, million in 2007 — by examining public records she said, she had no idea that they had selected and government-issued identity cards, and by the relatives of Wen Jiabao. following the ownership trail to three Chinese The review of the corporate and regulato- investment entities. The name recorded on his ry records, which covers 1992 to 2012, found no mother’s shares was Taihong, a holding com- holdings in Mr. Wen’s name. And it was not pos- pany registered in Tianjin, the prime minister’s sible to determine from the documents wheth- hometown. er he recused himself from any decisions that The apparent efforts to conceal the wealth might have affected his relatives’ holdings, or reflect the highly charged politics surround- whether they received preferential treatment ing the country’s ruling elite, many of whom on investments. are also enormously wealthy but reluctant to For much of his tenure, Wen Jiabao has been draw attention to their riches. When Bloomberg at the center of rumors and conjecture about ef- News reported in June that the extended fam- forts by his relatives to profit from his position. ily of Vice President Xi Jinping, set to become Yet until the review by The Times, there has been China’s next president, had amassed hundreds no detailed accounting of the family’s riches. of millions of dollars in assets, the Chinese gov- His wife, Zhang Beili, is one of the country’s ernment blocked access inside the country to leading authorities on jewelry and gemstones the Bloomberg Web site. and is an accomplished businesswoman in her “In the senior leadership, there’s no family own right. By managing state diamond com- that doesn’t have these problems,” said a for- panies that were later privatized, The Times mer government colleague of Wen Jiabao who found, she helped her relatives parlay their mi- has known him for more than 20 years and who nority stakes into a billion-dollar portfolio of in- spoke on the condition of anonymity. “His en- surance, technology and real estate ventures. emies are intentionally trying to smear him by The couple’s only son sold a technol- letting this leak out.” ogy company he started to the family of Hong The Times presented its findings to the Kong’s richest man, Li Ka-shing, for $10 million, Chinese government for comment. The For- and used another investment vehicle to estab- eign Ministry declined to respond to questions lish New Horizon Capital, now one of China’s about the investments, the prime minister or biggest private equity firms, with partners like his relatives. Members of Mr. Wen’s family also the government of Singapore, according to re- declined to comment or did not respond to re- cords and interviews with bankers. quests for comment. The prime minister’s younger brother, Wen Duan Weihong, a wealthy businesswoman Jiahong, controls $200 million in assets, includ- whose company, Taihong, was the investment ing wastewater treatment plants and recycling vehicle for the Ping An shares held by the prime businesses, the records show. minister’s mother and other relatives, said the As prime minister, Mr. Wen has staked out investments were actually her own. Ms. Duan, a position as a populist and a reformer, someone who comes from the prime minister’s home- whom the state-run media has nicknamed “the town and is a close friend of his wife, said own- People’s Premier” and “Grandpa Wen” because ership of the shares was listed in the names of of his frequent outings to meet ordinary people, Mr. Wen’s relatives in an effort to conceal the especially in moments of crisis like natural di- size of Ms. Duan’s own holdings. sasters. “When I invested in Ping An I didn’t want to While it is unclear how much the prime min- be written about,” Ms. Duan said, “so I had my ister knows about his family’s wealth, State De- partment documents released by the WikiLeaks While her husband was serving in China’s organization in 2010 included a cable that sug- main leadership compound, known as Zhong- gested Mr. Wen was aware of his relatives’ busi- nanhai, Ms. Zhang was setting industry stan- ness dealings and unhappy about them. dards in the jewelry and gem trade. She helped “Wen is disgusted with his family’s activi- create the National Gemstone Testing Center in ties, but is either unable or unwilling to curtail Beijing, and the Shanghai Diamond Exchange, them,” a Chinese-born executive working at an two of the industry’s most powerful institutions. American company in Shanghai told American In a country where the state has long domi- diplomats, according to the 2007 cable. nated the marketplace, jewelry regulators often decided which companies could set up diamond- China’s ‘Diamond Queen’ processing factories, and which would gain entry It is no secret in China’s elite circles that the to the retail jewelry market. State regulators even prime minister’s wife, Zhang Beili, is rich, and formulated rules that required diamond sellers to that she has helped control the nation’s jewelry buy certificates of authenticity for any diamond and gem trade. But her lucrative diamond busi- sold in China, from the government-run testing nesses became an off-the-charts success only as center in Beijing, which Ms. Zhang managed. her husband moved into the country’s top lead- As a result, when executives from Cartier ership ranks, the review of corporate and regu- or De Beers visited China with hopes of selling latory records by The Times found. diamonds and jewelry here, they often went to A geologist with an expertise in gemstones, visit Ms. Zhang, who became known as China’s Ms. Zhang is largely unknown among ordinary “diamond queen.” Chinese. She rarely travels with the prime min- “She’s the most important person there,” ister or appears with him, and there are few of- said Gaetano Cavalieri, president of the World ficial photographs of the couple together. And Jewelry Confederation in Switzerland. “She was while people who have worked with her say she bridging relations between partners — Chinese has a taste for jade and fine diamonds, they say and foreign partners.” she usually dresses modestly, does not exude As early as 1992, people who worked with glamour and prefers to wield influence behind Ms. Zhang said, she had begun to blur the line the scenes, much like the relatives of other se- between government official and businesswom- nior leaders. an. As head of the state-owned China Mineral The State Department documents released and Gem Corporation, she began investing the by WikiLeaks included a suggestion that Mr. state company’s money in start-ups. And by the Wen had once considered divorcing Ms. Zhang time her husband was named vice premier, in because she had exploited their relationship 1998, she was busy setting up business ventures in her diamond trades. Taiwanese television with friends and relatives. reported in 2007 that Ms. Zhang had bought a The state company she ran invested in a pair of jade earrings worth about $275,000 at a group of affiliated diamond companies, accord- Beijing trade show, though the source — a Tai- ing to public records. Many of them were run wanese trader — later backed off the claim and by Ms. Zhang’s relatives — or colleagues who Chinese government censors moved swiftly to had worked with her at the National Gemstone block coverage of the subject in China, accord- Testing Center. ing to news reports at the time. In 1993, for instance, the state company Ms. “Her business activities are known to ev- Zhang ran helped found Beijing Diamond, a big eryone in the leadership,” said one banker who jewelry retailer. A year later, one of her younger worked with relatives of Wen Jiabao. The bank- brothers, Zhang Jianming, and two of her gov- er said it was not unusual for her office to call ernment colleagues personally acquired 80 per- upon businesspeople. “And if you get that call, cent of the company, according to shareholder how can you say no?” registers. Beijing Diamond invested in Shen- Zhang Beili first gained influence in the zhen Diamond, which was controlled by her 1990s, while working as a regulator at the Min- brother-in-law, Wen Jiahong, the prime minis- istry of Geology. At the time, China’s jewelry ter’s younger brother. market was still in its infancy. Among the successful undertakings was Sino-Diamond, a venture financed by the state- cocktails as Beijing’s nouveau riche gathered owned China Mineral and Gem Corporation, around, clutching designer bags and wear- which she headed. The company had business ing expensive business suits, according to two ties with a state-owned company managed by guests who were present. another brother, Zhang Jiankun, who worked as In China, the children of senior leaders are an official in Jiaxing, Ms. Zhang’s hometown, in widely believed to be in a class of their own. Zhejiang Province. Known as “princelings,” they often hold Ivy In the summer of 1999, after securing agree- League degrees, get V.I.P. treatment, and are ments to import diamonds from Russia and even offered preferred pricing on shares in hot South Africa, Sino-Diamond went public, rais- stock offerings. ing $50 million on the Shanghai Stock Exchange. They are also known as people who can get The offering netted Ms. Zhang’s family about $8 things done in China’s heavily regulated mar- million, according to corporate filings. ketplace, where the state controls access. And Although she was never listed as a share- in recent years, few princelings have been as holder, former colleagues and business part- bold as the younger Mr. Wen, who goes by the ners say Ms. Zhang’s early diamond partner- English name Winston and is about 40 years old. ships were the nucleus of a larger portfolio of A Times review of Winston Wen’s invest- companies she would later help her family and ments, and interviews with people who have colleagues gain a stake in. known him for years, show that his deal-making The Times found no indication that Wen Jia- has been extensive and lucrative, even by the bao used his political clout to influence the dia- standards of his princeling peers. mond companies his relatives invested in. But State-run giants like China Mobile have former business partners said that the family’s formed start-ups with him. In recent years, success in diamonds, and beyond, was often Winston Wen has been in talks with Hollywood bolstered with financial backing from wealthy studios about a financing deal. businessmen who sought to curry favor with Concerned that China does not have an elite the prime minister’s family. boarding school for Chinese students, he recent- “After Wen became prime minister, his wife ly hired the headmasters of Choate and Hotch- sold off some of her diamond investments and kiss in Connecticut to oversee the creation of a moved into new things,” said a Chinese execu- $150 million private school now being built in tive who did business with the family. He asked the Beijing suburbs. not to be named because of fear of government Winston Wen and his wife, moreover, have retaliation. Corporate records show that begin- stakes in the technology industry and an elec- ning in the late 1990s, a series of rich business- tric company, as well as an indirect stake in men took turns buying up large stakes in the Union Mobile Pay, the government-backed on- diamond companies, often from relatives of Mr. line payment platform — all while living in the Wen, and then helped them reinvest in other lu- prime minister’s residence, in central Beijing, crative ventures, like real estate and finance. according to corporate records and people fa- According to corporate records and inter- miliar with the family’s investments. views, the businessmen often supplied accoun- “He’s not shy about using his influence to tants and office space to investment partner- get things done,” said one venture capitalist ships partly controlled by the relatives. who regularly meets with Winston Wen. “When they formed companies,” said one The younger Mr. Wen declined to comment. businessman who set up a company with mem- But in a telephone interview, his wife, Yang bers of the Wen family, “Ms. Zhang stayed in the Xiaomeng, said her husband had been unfairly background. That’s how it worked.” criticized for his business dealings. “Everything that has been written about The Only Son him has been wrong,” she said. “He’s really not Late one evening early this year, the prime doing that much business anymore.” minister’s only son, Wen Yunsong, was in the Winston Wen was educated in Beijing and cigar lounge at Xiu, an upscale bar and lounge then earned an engineering degree from the at the Park Hyatt in Beijing. He was having Beijing Institute of Technology. He went abroad C M Y K Nxxx,2012-10-26,A,015,Bs-BK,E2

THE NEW YORK TIMES INTERNATIONAL FRIDAY, OCTOBER 26, 2012 Ø N A15

KEY Member of The family The Wen Family Empire Wen family built a YANG ZHIYUN MOTHER Beginning with diamonds in the 1990s, the relatives of Wen Jiabao amassed a fortune by fortune by Colleague of Also known as Yang Xiu’an, forming a complex business network that bought stakes in sectors as varied as real forming Wen family the 90-year-old mother estate and telecommunications. Corporate records reviewed by The Times show that a business owned investments in tight-knit group of about 20 relatives and friends made investments that were sometimes Value of networks Ping An Insurance worth $1 million aided by Asia’s wealthiest tycoons. By far the biggest source of the wealth came from Ping An stake aided by $120 million. investments in Ping An Insurance, China’s biggest financial services company. wealthy Business $120 million relationship tycoons Blue type Operational company WEN JIABAO ZHANG BEILI PRIME MINISTER OF CHINA An expert in gems and a force in the Gray type Shell company Nicknamed Grandpa Wen nation’s diamond trade. She met because of his concern for the Wen Jiabao while both were working underprivileged, he has called as government BROTHER official corruption a threat to geologists in WIFE WIFE’S BROTHER the ruling Communist Party. Gansu Province. WEN JIAHONG AND WIFE He controls energy, engineering and waste treatment companies; his wife held a major stake in Ping An. SON’S WIFE SON DAUGHTER $110 million ZHANG JIANMING YANG XIAOMENG AND PARENTS Invested in diamond companies She holds shares in family-related with his sister's colleagues. companies, including a company that owns part of Union Mobile Pay. Her parents once held a big Ping An stake.

$416 million WEN YUNSONG PRESIDENT BROTHER’S WEN RUCHUN COLLEAGUE Holds engineering degrees, and Worked at Credit an M.B.A. from Northwestern’s Suisse. Held shares LEGAL REPRESENTATIVE Sino- INVESTOR Kellogg School of Business. of a Chinese jewelry ZHANG YUHONG Co-founder of New Horizon Diamond Hanyang Vice president at Hanyang company called Capital. Chairman of China WIFE’S BROTHER VICE PRESIDENT Investment. Grew up in Tianjin. Gallop. Investment Satellite Communications. Helps control investment firms tied to the Wen family. INVESTOR DIRECTOR $176 million CO-FOUNDER C.E.O.

DIRECTOR SON’S COLLEAGUE LEGAL New ZHANG JIANKUN REPRESENTATIVE Horizon Former government bureaucrat who invested Sheng Capital CO-FOUNDER in diamond companies backed by his sister, as Churui well as real estate and highway infrastructure. C.E.O. $1 million* National Trust DIRECTOR

INVESTOR YU JIANMING Worked briefly at McKinsey in Los Angeles. Co-founded the private equity firm New Horizon Capital. Helps control a string of INVESTOR investment vehicles tied to the Wen family. DIRECTOR

LEGAL REPRESENTATIVE WIFE’S Go2Joy COLLEAGUE DIRECTOR

INVESTOR

INVESTOR Union INVESTOR Mobile Pay WANG ZHUANGLI

INVESTOR Worked for a diamond company linked to Zhang Beili. A shareholder in several Wen family-related companies, including Sheng Churui and Xuanda. INVESTOR $74 million

INVESTOR

INVESTOR DIRECTOR Xuanda INVESTOR INVESTOR Unihub INVESTOR Xinyuan INVESTOR Tianjin Liandong Taihong INVESTOR

FORMED A JOINT VENTURE LEGAL SOLD TO MERGED WITH SOLD TO A SUBSIDIARY OWNER WITH NEW WORLD CYBERBASE OWNER REPRESENTATIVE DALIAN HAICHANG P.C.C.W. INVESTOR OF CHINA.COM

DUAN CHENG ZHENG QU LI PETER WEIHONG YU-TUNG JIANYUAN NAIJIE KA-SHING YIP Beijing Hong Kong Hong Kong Dalian Hong Kong Hong Kong

$1.3 billion $14 billion $1.4 billion* $75 million

One of China’s wealthiest Hong Kong’s second-richest Also known as Vincent Cheng. Wealthy businessman from The richest man in Hong Kong The former chief executive of the women and the founder of man. Controls New World A reclusive philanthropist and northern China who controls for much of the last decade, CDC Corporation, a Chinese Taihong, the Great Ocean Group Development, with real estate, business associate of the Hong Dalian Haichang. Has interests with a net worth of $22 billion. technology company. One of his and Airport City Logistics. Her infrastructure and retail Kong tycoon Cheng Yu-tung. in chemicals, plastics and Together with his son, Richard company’s major shareholders Kaifeng Foundation gives to business holdings, including Once controlled three diamonds. Forbes puts his net Li, controls the Hong Kong was New World Development, Harvard University and Beijing’s the world’s biggest jewelry investment vehicles with 300 worth at $770 million. conglomerate Hutchison which is controlled by the Hong Tsinghua University. store chain, Chow Tai Fook. million shares in Ping An. Whampoa. Kong tycoon Cheng Yu-tung.

*Values of Ping An shares are figured as of January or October 2007 (latest records available), except where asterisked. Asterisked values are as of 2004. Shares attributed to Duan Weihong were owned through her mother. Those owned by Qu Naijie were through his company, Dalian Haichang. Those owned by Cheng Yu-tung and Zheng Jianyuan were through multiple investment vehicles. GUILBERT GATES FOR THE NEW YORK TIMES to-day operations and taken up a posi- parties. relatives has been Cheng Yu-tung, who their family assets. league of Wen Jiahong, the prime min- tion at the China Satellite Communica- Established in Tianjin, Taihong had controls the Hong Kong conglomerate Whether Mr. Wen has made such dis- ister’s younger brother. The associates tions Corporation, a state-owned com- spectacular returns. In 2002, the compa- New World Development and is one of closures for his own family is unclear, did not return telephone calls seeking pany that has ties to the Chinese space ny paid about $65 million to acquire a 3 the richest men in Asia, worth about $15 since the Communist Party does not re- comment. program. He has since been named percent stake in Ping An before its ini- billion, according to Forbes. lease such information. Even so, many Revelations about the Wen family’s chairman. tial public offering, according to corpo- In the 1990s, New World was seeking of the holdings found by The Times wealth could weaken him politically. rate records and Ms. Duan’s graduate a foothold in mainland China for a sister would not need to be disclosed under Next month, at the 18th Party Con- school thesis. Five years later, those company that specializes in high-end the rules since they are not held in the gress in Beijing, the Communist Party is The Tycoons shares were worth $3.7 billion retail jewelry. The retail chain, Chow name of the prime minister’s immediate expected to announce a new generation In the late 1990s, Duan Weihong was The company’s Hong Kong affiliate, Tai Fook, opened its first store in China family — his wife, son and daughter. of leaders. But the selection process has managing an office building and several Great Ocean, also run by Ms. Duan, lat- in 1998. Eighty percent of the $2.7 billion in as- already been marred by one of the other properties in Tianjin, the prime er formed a joint venture with the Bei- Mr. Cheng and his associates invest- sets identified in The Times’s investiga- worst political scandals in decades, the minister’s hometown in northern China, jing government and acquired a huge ed in a diamond venture backed by the tion and verified by the outside auditors downfall of Bo Xilai, the Chongqing par- through her property company, Tai- tract of land adjacent to Capital In- relatives of Mr. Wen and co-invested were held by, among others, the prime ty boss, who was vying for a top posi- hong. She was in her 20s and had stud- ternational Airport. Today, the site is with them in an array of corporate enti- minister’s mother, his younger brother, tion. ied at the Nanjing University of Science home to a sprawling cargo and logistics ties, including Sino-Life, National Trust two brothers-in-law, a sister-in-law, In Beijing, Wen Jiabao is expected to and Technology. center. Last year, Great Ocean sold its and Ping An, according to records and daughter-in-law and the parents of his step down as prime minister because he Around 2002, Ms. Duan went into 53 percent stake in the project to a Sin- interviews with some of those involved. son’s wife, none of whom is subject to has reached retirement age. Political business with several relatives of Wen gapore company for nearly $400 mil- Those investments by Mr. Cheng are party disclosure rules. The total value of analysts say that even after leaving of- Jiabao, transforming her property com- lion. now worth at least $5 billion, according the relatives’ stake in Ping An is based fice he could remain a strong backstage pany into an investment vehicle of the That deal and several other invest- to the corporate filings. Chow Tai Fook, on calculations by The Times that were political force. But documents showing same name. The company helped make ments, in luxury hotels, Beijing villa de- the jewelry chain, has also flourished. confirmed by the auditors. The total in- that his relatives amassed a fortune Ms. Duan very wealthy. velopments and the Hong Kong-listed Today, China accounts for 60 percent of cludes shares held by the relatives that during his tenure could diminish his It is not known whether Ms. Duan, BBMG, one of China’s largest building the chain’s $4.2 billion in annual reve- were sold between 2004 and 2006, and standing, the analysts said. now 43, is related to the prime minister. materials companies, have been instru- nue. the value of the remaining shares in late “This will affect whatever residual In a series of interviews, she first said mental to Ms. Duan’s accumulation of Mr. Cheng, 87, could not be reached 2007, the last time the holdings were power Wen has,” said Minxin Pei, an ex- she did not know any members of the riches, according to The Times’s review for comment. Calls to New World De- publicly disclosed. pert on Chinese leadership and a profes- Wen family, but later described herself of corporate records. velopment were not returned. Legal experts said that determining sor of government at Claremont Mc- as a friend of the family and particular- The review also showed that over the the precise value of holdings in China Kenna College in California. ly close to Zhang Beili, the prime min- past decade there have been nearly could be difficult because there might The prime minister’s supporters say ister’s wife. As happened to a handful of three dozen individual shareholders of Fallout for Premier be undisclosed side agreements about he has not personally benefited from his other Chinese entrepreneurs, Ms. Taihong, many of whom are either rela- In the winter of 2007, just before he the true beneficiaries. extended family’s business dealings, Duan’s fortunes soared as she teamed tives of Wen Jiabao or former col- began his second term as prime min- “Complex corporate structures are and may not even be knowledgeable up with the relatives and their network leagues of his wife. ister, Wen Jiabao called for new meas- not necessarily insidious,” said Curtis J. about the extent of them. of friends and colleagues, though she The other wealthy entrepreneurs ures to fight corruption, particularly Milhaupt, a Columbia University Law Last March, the prime minister hint- described her relationship with them in- who have worked with the prime min- among high-ranking officials. School professor who has studied Chi- ed that he was at least aware of the per- volving the shares in Ping An as ex- ister’s relatives declined to comment “Leaders at all levels of government na’s corporate group structures. “But in sistent rumors about his relatives. Dur- isting on paper only and having no fi- for this article. Ms. Duan strongly de- should take the lead in the antigraft a system like China’s, where corporate ing a nationally televised news confer- nancial component. nied having financial ties to the prime drive,” he told a gathering of high-level ownership and political power are close- ence in Beijing, he insisted that he had Ms. Duan and other wealthy busi- minister or his relatives and said she party members in Beijing. “They ly intertwined, shell companies magnify “never pursued personal gain” in public nesspeople — among them, six billion- was only trying to avoid publicity by should strictly ensure that their family questions about who owns what and office. aires from across China — have been in- listing others as owning Ping An members, friends and close subordi- where the money came from.” “I have the courage to face the people strumental in getting multimillion-dol- shares. “The money I invested in Ping nates do not abuse government influ- Among the investors in the Wen fam- and to face history,” he said in an emo- lar ventures off the ground and, at cru- An was completely my own,” said Ms. ence.” ily ventures are longtime business asso- tional session. “There are people who cial times, helping members of the Wen Duan, who has served as a member of The speech was consistent with the ciates, former colleagues and college will appreciate what I have done, but family set up investment vehicles to the Ping An board of supervisors. “Ev- prime minister’s earlier drive to tough- classmates, including Yu Jianming, who there are also people who will criticize profit from them, according to invest- erything I did was legal.” en disclosure rules for public servants, attended Northwestern with Winston me. Ultimately, history will have the fi- ment bankers who have worked with all Another wealthy partner of the Wen and to require senior officials to reveal Wen, and Zhang Yuhong, a longtime col- nal say.” and earned a master’s degree in engineering Horizon made a $46.5 million profit on the sale. materials from the University of Windsor, in Soon after, New Horizon announced that Canada, and an M.B.A. from the Kellogg School Winston Wen had handed over day-to-day op- of Business at Northwestern University in erations and taken up a position at the China Evanston, Ill., just outside Chicago. Satellite Communications Corporation, a state- When he returned to China in 2000, he owned company that has ties to the Chinese helped set up three successful technology com- space program. He has since been named chair- panies in five years, according to people famil- man. iar with those deals. Two of them were sold to Hong Kong businessmen, one to the family of Li The Tycoons Ka-shing, one of the wealthiest men in Asia. In the late 1990s, Duan Weihong was man- Winston Wen’s earliest venture, an Internet aging an office building and several other prop- data services provider called Unihub Global, erties in Tianjin, the prime minister’s home- was founded in 2000 with $2 million in start-up town in northern China, through her property capital, according to Hong Kong and Beijing company, Taihong. She was in her 20s and had corporate filings. Financing came from a tight- studied at the Nanjing University of Science knit group of relatives and his mother’s former and Technology. colleagues from government and the diamond Around 2002, Ms. Duan went into business trade, as well as an associate of Cheng Yu-tung, with several relatives of Wen Jiabao, transform- patriarch of Hong Kong’s second-wealthiest ing her property company into an investment family. The firm’s earliest customers were state- vehicle of the same name. The company helped owned brokerage houses and Ping An, in which make Ms. Duan very wealthy. the Wen family has held a large financial stake. It is not known whether Ms. Duan, now 43, He made an even bolder move in 2005, by is related to the prime minister. In a series of pushing into private equity when he formed interviews, she first said she did not know any New Horizon Capital with a group of Chinese- members of the Wen family, but later described born classmates from Northwestern. The firm herself as a friend of the family and particularly quickly raised $100 million from investors, in- close to Zhang Beili, the prime minister’s wife. cluding SBI Holdings, a division of the Japanese As happened to a handful of other Chinese en- group SoftBank, and Temasek, the Singapore trepreneurs, Ms. Duan’s fortunes soared as she government investment fund. teamed up with the relatives and their network Under Mr. Wen, New Horizon established it- of friends and colleagues, though she described self as a leading private equity firm, investing in her relationship with them involving the shares biotech, solar, wind and construction equipment in Ping An as existing on paper only and having makers. Since it began operations, the firm has no financial component. returned about $430 million to investors, a four- Ms. Duan and other wealthy businesspeo- fold profit, according to SBI Holdings. ple — among them, six billionaires from across “Their first fund was dynamite,” said Kath- China — have been instrumental in getting leen Ng, editor of Asia Private Equity Review, multimillion-dollar ventures off the ground and, an industry publication in Hong Kong. “And that at crucial times, helping members of the Wen allowed them to raise a lot more money.” family set up investment vehicles to profit from Today, New Horizon has more than $2.5 bil- them, according to investment bankers who lion under management. have worked with all parties. Some of Winston Wen’s deal-making, Established in Tianjin, Taihong had spec- though, has attracted unwanted attention for tacular returns. In 2002, the company paid the prime minister. about $65 million to acquire a 3 percent stake in In 2010, when New Horizon acquired a 9 Ping An before its initial public offering, accord- percent stake in a company called Sihuan Phar- ing to corporate records and Ms. Duan’s gradu- maceuticals just two months before its public ate school thesis. Five years later, those shares offering, the Hong Kong Stock Exchange said were worth $3.7 billion the late-stage investment violated its rules and The company’s Hong Kong affiliate, Great forced the firm to return the stake. Still, New Ocean, also run by Ms. Duan, later formed a joint venture with the Beijing government and Mr. Cheng, 87, could not be reached for acquired a huge tract of land adjacent to Capi- comment. Calls to New World Development tal International Airport. Today, the site is home were not returned. to a sprawling cargo and logistics center. Last year, Great Ocean sold its 53 percent stake in Fallout for Premier the project to a Singapore company for nearly In the winter of 2007, just before he began $400 million. his second term as prime minister, Wen Jiabao That deal and several other investments, in called for new measures to fight corruption, luxury hotels, Beijing villa developments and particularly among high-ranking officials. the Hong Kong-listed BBMG, one of China’s “Leaders at all levels of government should largest building materials companies, have take the lead in the antigraft drive,” he told a been instrumental to Ms. Duan’s accumulation gathering of high-level party members in Bei- of riches, according to The Times’s review of jing. “They should strictly ensure that their corporate records. family members, friends and close subordinates The review also showed that over the past do not abuse government influence.” decade there have been nearly three dozen The speech was consistent with the prime individual shareholders of Taihong, many of minister’s earlier drive to toughen disclosure whom are either relatives of Wen Jiabao or for- rules for public servants, and to require senior mer colleagues of his wife. officials to reveal their family assets. The other wealthy entrepreneurs who Whether Mr. Wen has made such disclo- have worked with the prime minister’s rela- sures for his own family is unclear, since the tives declined to comment for this article. Ms. Communist Party does not release such infor- Duan strongly denied having financial ties to mation. Even so, many of the holdings found by the prime minister or his relatives and said she The Times would not need to be disclosed under was only trying to avoid publicity by listing the rules since they are not held in the name of others as owning Ping An shares. “The money the prime minister’s immediate family — his I invested in Ping An was completely my own,” wife, son and daughter. said Ms. Duan, who has served as a member of Eighty percent of the $2.7 billion in assets the Ping An board of supervisors. “Everything identified in The Times’s investigation and I did was legal.” verified by the outside auditors were held by, Another wealthy partner of the Wen rela- among others, the prime minister’s mother, tives has been Cheng Yu-tung, who controls the his younger brother, two brothers-in-law, a Hong Kong conglomerate New World Devel- sister-in-law, daughter-in-law and the parents opment and is one of the richest men in Asia, of his son’s wife, none of whom is subject to worth about $15 billion, according to Forbes. party disclosure rules. The total value of the In the 1990s, New World was seeking a relatives’ stake in Ping An is based on calcu- foothold in mainland China for a sister compa- lations by The Times that were confirmed by ny that specializes in high-end retail jewelry. the auditors. The total includes shares held by The retail chain, Chow Tai Fook, opened its the relatives that were sold between 2004 and first store in China in 1998. 2006, and the value of the remaining shares in Mr. Cheng and his associates invested in late 2007, the last time the holdings were pub- a diamond venture backed by the relatives of licly disclosed. Mr. Wen and co-invested with them in an ar- Legal experts said that determining the ray of corporate entities, including Sino-Life, precise value of holdings in China could be dif- National Trust and Ping An, according to re- ficult because there might be undisclosed side cords and interviews with some of those in- agreements about the true beneficiaries. volved. Those investments by Mr. Cheng are “Complex corporate structures are not nec- now worth at least $5 billion, according to the essarily insidious,” said Curtis J. Milhaupt, a corporate filings. Chow Tai Fook, the jewelry Columbia University Law School professor who chain, has also flourished. Today, China ac- has studied China’s corporate group structures. counts for 60 percent of the chain’s $4.2 billion “But in a system like China’s, where corporate in annual revenue. ownership and political power are closely in- tertwined, shell companies magnify questions backstage political force. But documents show- about who owns what and where the money ing that his relatives amassed a fortune during came from.” his tenure could diminish his standing, the ana- Among the investors in the Wen family ven- lysts said. tures are longtime business associates, former “This will affect whatever residual power colleagues and college classmates, including Wen has,” said Minxin Pei, an expert on Chi- Yu Jianming, who attended Northwestern with nese leadership and a professor of government Winston Wen, and Zhang Yuhong, a longtime at Claremont McKenna College in California. colleague of Wen Jiahong, the prime minister’s The prime minister’s supporters say he younger brother. The associates did not return has not personally benefited from his extended telephone calls seeking comment. family’s business dealings, and may not even be Revelations about the Wen family’s wealth knowledgeable about the extent of them. could weaken him politically. Last March, the prime minister hinted that Next month, at the 18th Party Congress in he was at least aware of the persistent rumors Beijing, the Communist Party is expected to an- about his relatives. During a nationally tele- nounce a new generation of leaders. But the se- vised news conference in Beijing, he insisted lection process has already been marred by one that he had “never pursued personal gain” in of the worst political scandals in decades, the public office. downfall of Bo Xilai, the Chongqing party boss, “I have the courage to face the people and who was vying for a top position. to face history,” he said in an emotional session. In Beijing, Wen Jiabao is expected to step “There are people who will appreciate what I down as prime minister in March at the end of have done, but there are also people who will his second term. Political analysts say that even criticize me. Ultimately, history will have the fi- after leaving office he could remain a strong nal say.” n C M Y K Nxxx,2012-11-25,A,001,Bs-BK,E3

Late Edition Today, partly cloudy, blustery, high 43. Tonight, clearing, chilly, low 34. Tomorrow, afternoon sun, shifting winds, milder, high 48. Weather map and details, Page 26.

VOL. CLXII . . No. 55,966 © 2012 The New York Times NEW YORK, SUNDAY, NOVEMBER 25, 2012 $6 beyond the greater New York metropolitan area. $5.00 EGYPTIAN JUDGES ELECTION SPURRED CHALLENGE MORSI A MOVE TO CODIFY OVER NEW POWERCCMMYYKK Nxxx,2012-11-25,A,001,Bs-BK,E3Nxxx,2012-11-25,A,001,Bs-BK,E3 U.S. DRONE POLICY

LateLate Edition Edition JUDICIARY CALLS STRIKE TodayToday, , partly partly cloudy, cloudy, blustery,STANDARDS blustery, ARE SOUGHT highhigh 43. 43. Tonight Tonight, , clearing, clearing, chilly, chilly, lowlow 34. 34. Tomorrow Tomorrow, ,afternoon afternoon sun, sun, shiftingshifting winds, winds, milder, milder, high high 48. 48. Conflict With Islamists WeatherWeather map map and and details, details, PageDebate Page 26. 26. in Washington C M Y K Nxxx,2012-11-25,A,001,Bs-BK,E3 Over a ConstitutionVOL.VOL. CLXII CLXII . . . . No. No. 55,966 55,966 ©© 2012 2012 The The New New York York Times Times NEWNEW YORK, YORK, SUNDAY, SUNDAY, NOVEMBER NOVEMBER 25, 25, 2012 2012 $6$6 beyond beyond the the greater greater New New York York metropolitan metropolitan area. area. $5.00$5.00Over When Attacks Strains Transition Can Be Justified Late Edition EGYPTIANEGYPTIAN JUDGESJUDGES Today, partly cloudy, blustery, ELECTIONELECTION SPURRED SPURRED high 43. Tonight, clearing, chilly, By DAVID D. KIRKPATRICK low 34. Tomorrow, afternoon sun, By SCOTT SHANE shifting winds, milder, high 48. CAIRO — Egyptian judgesCHALLENGECHALLENGE re- MORSI MORSI Weather map and details, Page 26. AA MOVE MOVE TO TO CODIFY CODIFYWASHINGTON — Facing the belled Saturday against an edict possibility that President Obama by President Mohamed Morsi ex- might not win a second term, his VOL. CLXII . . No. 55,966OVEROVER NEW NEW© 2012 POWER POWER The New York Times NEW YORK, SUNDAY, NOVEMBER 25, 2012 $6 beyond the greater New York metropolitan area. $5.00 U.S.U.S. DRONE DRONE POLICY POLICY empting his decrees from judicial administration accelerated work review, denouncing it as a bid for in the weeks before the election unchecked power and callingJUDICIARYJUDICIARY for CALLS CALLS STRIKE STRIKE STANDARDSSTANDARDS ARE ARE SOUGHT SOUGHTto develop explicit rules for the a judges’ strike.EGYPTIAN JUDGES ELECTION SPURRED targeted killing of terrorists by The condemnation came from unmanned drones, so that a new an array ofCHALLENGE organizations. MORSIConflict Conflict The With With Islamists Islamists A MOVE TO CODIFY DebateDebate in in Washington Washingtonpresident would inherit clear Supreme Council of the JudiciaryOverOver a a Constitution Constitution OverOver When When Attacks Attacksstandards and procedures, ac- called the decreeOVER NEW “an unprece- POWERStrainsStrains Transition Transition U.S. DRONE POLICY CanCan Be Be Justified Justifiedcording to two administration of- dented attack on judicial inde- ficials. pendence” and urged the presi- The matter may have lost dent to rescindJUDICIARY it. A major CALLS associ- STRIKEByBy DAVID DAVID D. D. KIRKPATRICK KIRKPATRICK STANDARDS ARE SOUGHT ByBy SCOTT SCOTT SHANE SHANEsome urgency after Nov. 6. 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An emboldened Hamas may lead Israel to harden its stance. Pagetargetedtargeted 12. killing killing of of terrorists terrorists by by A judicial strike would beThe The the condemnation condemnation came came from from unmannedunmanned drones, drones, so so that thattion a a new new is still pushing to make the By DAVID D. KIRKPATRICKanan array array of of organizations. organizations. 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ThoseThose tensions tensionsGirls have athave a Gaza flared flared school since since were stunned to find it closed. An emboldenedatives Hamas of may Mr. lead Wen. Israel to harden its stance. Page 12. a waivertion is still to pushingthe requirement to make the that big finan- ling territory. A judicial strike would be the Chinese officials to relax rules that re- measuremeasure of of last last resort resort against against im- im- Mr. Morsisteepest said escalation his expanded yet inMr. Mr.a politi- Morsi Morsi announced announced his his decree decree cialrules companies formal and resolvebe broken internal up. Though publicly the adminis- onon Thursday, Thursday, saying sayingquired he he acted actedbreaking to to up theChineseChinese company Insurer’s Insurer’s in the af- Regulatory RegulatoryThe Times Victory Victory reported Proved Provedlast month a a Boon Boon that the to to Premier’s Premier’s Relatives Relatives minentminent threats threats to to the the United United powers, whichcal struggle he announced between the coun- a EGYPTIAN JUDGES ELECTION SPURRED uncertainty and disagreement tration presents a united front on try’s new Islamist leaderspreventprevent and the the old-guard old-guardtermath courts courtsof the Asian financial crisis. relatives of Mr. Wen, who became prime Longabout exactly before when most lethal action investorsStates,States, could or or a buy a more more flexible flexible tool, tool, day after the he institutions won international of the oldfrom fromauthori- dissolving dissolving the the Constitution- Constitution- ByBy DAVID DAVID BARBOZA BARBOZA ministerhindhind in the the 2003, scenes, scenes, had shares shares grown in in Ping Ping extraordinari- An An that that TheThe Times TimesPing investigationis investigation justified. An stock, has has found, Taihong, found, came came a companyavailableavailable to thatto help help allied allied the govern- govern- use of drones, behind the alal Assembly, Assembly, CHALLENGE as as theyThe they had MORSI had survival dis- dis- of Ping An Insurance was A MOVE TO CODIFY Mr. Obama and his advisers mentsments attack attack their their enemies enemies or or to to praise for helpingtarian government broker a overcease- the Lobbying,SHENZHEN,SHENZHEN, a Windfall China China — — The The head head ofand of a a fi- fi- would woulda Leader’sbe be worth worth billions billions of of dollars dollars Family once once the the fromfrom the the shares shares in in Ping Ping An An bought bought about about scenes there is longstanding ten- drafting of a new constitution.solvedsolved an an earlier earlier assembly assembly and and ly wealthy during his leadership, acquiring wouldare stillsoon debating be controlled whether re- by Mr.preventprevent Wen’s militants militants rel- from from control- control- OVERat NEW stake, POWER officialsnancially nancially were told troubled troubled in insurerthe insurer fall was was of pushing pushing companycompany rebounded rebounded were were acquired acquiredU.S. by DRONEby rel- rel- POLICYeighteight months months after after the the insurer insurer was was granted granted fire in Gaza,Those would tensions last have only flaredthe theuntil Parliament.since Parliament. mote-control killing should be a lingling territory. territory. sion. The Defense Department 1999. Direct appealsChineseChinese were officials officials made to toto relax relaxthe rulesvice rules that thatstakes re- re- ativesatives in touristof of Mr. Mr. Wen. Wen. resorts, banks, jewelers,aa waiver waiveratives, to to the the requirement requirement acquired that that a big largebig finan- finan- stake in Ping An Mr. Morsi announced his decree measure of last resort against im- ThoughThough publicly publicly the the adminis- adminis- the new constitution was ratified.Mr.Mr. Morsi Morsi said said his his expanded expanded quiredquired breaking breaking up up the the company company in in the the af- af- TheThe Times Times reported reported last last month month that that the the cialcial companies companiesfrom bestate-owned be broken broken up. up. entities that held shares and the C.I.A. continue to press on Thursday, saying hepowers, actedpowers, to which whichJUDICIARY hepremier he Chinese announced announced CALLS STRIKE at the aInsurer’s a time, Wen Regulatory Jiabao, as Victorywell as Provedtelecommunications a Boon to Premier’s companiesSTANDARDS Relatives and ARE other SOUGHT minent threats to the United trationtration presents presents a a united united front front on on The judges, who were appoint- termathtermath of of the the Asian Asian financial financial crisis. crisis. relativesrelatives of of Mr. Mr. Wen, Wen, who who became became prime prime LongLong before beforeStates, most most or investors a investors more flexible could could buytool, buy for greater latitude to carry out prevent the old-guardday day courts after after he he won won international international business ventures. in the insurer, regulatory andthethe corporate use use of of drones, drones, behind behind the the from dissolving the Constitution- the then-head of China’sTheThe survival survival central of of Ping Ping bank An An Insurance Insurance — was was ministerminister in in 2003, 2003, had had grown grown extraordinari- extraordinari- PingPing An An stock, stock,available Taihong, Taihong, to help a a company companyallied govern- that that ed by Egypt’s ousted strongman,praisepraise for for helping helpingConflict broker broker With By Islamistsa acease- DAVIDcease- BARBOZA hind the scenes, shares in Ping An that The Times investigationDebate has in found, Washington came scenesscenes there there is is longstanding longstandingstrikes; ten- ten- Justice Department and al Assembly, as they had dis- lyly wealthy wealthy during during his his leadership, leadership, acquiring acquiring wouldwould soon soonrecords be mentsbe controlled controlled attackshow. theirby by And Mr. Mr.enemies Wen’s Wen’sby allor rel- rel-to appearances, Tai- OverSHENZHEN,two a Constitution powerful China officials— Theatat head stake, stake, with of officialsa officials fi- oversightwould were were be By toldworth toldof DAVID inthe in billions the the BARBOZA fall fall of ofdollarsThe of greatestonce the from source the shares of in wealth, PingOver An When bought by Attacks far, about Hosni Mubarak,solved an earlier joined assembly liberalfirefire in andin Gaza, Gaza, would would last last only only until until stakesstakes in in tourist tourist resorts, resorts, banks, banks, jewelers, jewelers, atives,atives, acquired acquiredprevent a a large large militants stake stake from in in Ping Ping control- An An sion.sion. The The Defense Defense Department DepartmentState Department officials, and nanciallyStrains Transition troubled insurer1999. 1999. was Direct Direct pushing appeals appealscompany were were reboundedmade made to to the thewere vice vice acquired by rel- eight months after the insurerCan Be wasJustified granted hong got a sweet deal. The shares were the Parliament. thethe new new constitution constitutionindustry. was was ratified. ratified. fromfrom state-owned state-ownedling territory. entities entities that that held held shares shares andand the the C.I.A. C.I.A. continue continue to to press press and secular political leaders in Chinese officials to relax premier rulespremier that at at the re-the time, time,atives Wen Wen of Mr. Jiabao, Jiabao, Wen. as as well well as as telecommunicationstelecommunicationsa waiver companiesto companies the requirement and and other otherthat big finan- the president’s counterterrorism Mr. Morsi said his expandedTheThe judges, judges, who who were were appoint- appoint- inin the the insurer,bought insurer,Though regulatory regulatory in publiclyDecember and and the corporate corporate adminis- 2002 for for one-quarterfor greater greater latitude latitude to to carry carry out out quiredBy DAVID“I D.breaking KIRKPATRICK humbly up the request companythethe then-head then-headthatin the af-SHENZHEN,the of of vice China’sThe China’s Timespremier centralChina central reported bank bank last — —monthbusinessbusiness that the ventures. ventures.cial companies be broken up.By SCOTT SHANE opposing the decree. Becauseeded by theby Egypt’s Egypt’s ousted ousted strongman, strongman, tration presents a united front on strikes;strikes; Justice Justice Department Departmentadviser, and and John O. Brennan, have powers, which he announced a CAIROtermathlead — Egyptian ofhe andthe judges Asianhead re- coordinate financial of a twoftwoinancially crisis. powerful powerful the matterofficialstroubled officialsrelatives with with frominsurer of oversight Mr.oversight Wen, a of whoof the the becameTheThe prime greatest greatestLong source source before of of wealth,most wealth, investorsWASHINGTON by by far, far, could — Facingrecordsrecords buy the show.of show. the And And price by by all all that appearances, appearances, another Tai- Tai- big investor — the day after he won internationalHosniHosni Mubarak, Mubarak,belled Saturday joined joined against liberal an liberal edict possibility that President Obama the use of drones, behind the StateState Department Department officials, officials,argued and and for restraint, officials in- court dissolved the Parliament, by PresidentThe Mohamed survival Morsi of ex- Ping An industry. Insuranceindustry. was minister in 2003, had grown extraordinari- Ping An stock, Taihong,might not a win company a second hongterm,hong that his got gotBritish a a sweet sweet bank deal. deal. TheHSBC The shares shares Holdings were were — paid for its praise for helping broker a cease- emptinghigher his decreeswas from level,” judicial pushing Ma Chinese Mingzhe, officials chairman to relax of administration accelerated work scenes there is longstanding ten- thethe president’s president’s counterterrorism counterterrorism andand secular secular politicalat political stake, leaders officials leaders in were in told in the fall of ly wealthy during his leadership, acquiring would soon be controlled by Mr. Wen’sboughtbought rel- in in December December 2002 2002 for for one-quarter one-quarter fire in Gaza, would last only until review, denouncing it as a bid for “I“I humbly humbly request request that that the the vice vice premier premier in the weeks before the election sion. The Defense Department volved in the discussions say. Continued on Page 10 opposingopposing the the uncheckeddecree. 1999.decree.Ping Directpower Because Because rulesand An, appeals calling imploredthe thatfor the were required made in to the abreaking lettervice stakes toup Mr.the in tourist com Wen resorts,- banks, jewelers, atives, acquired a largeto develop stake explicit in rules Pingof of for the theAn price priceshares that that another another just big two big investor investor months — — the the earlier,adviser,adviser, according John John O. O. Brennan, Brennan, have have the new constitution was ratified. a judges’T strike. leadlead and and coordinate coordinate the the matter matter from from a a targeted killing of terrorists by and the C.I.A. continue to press More broadly, the administra- from state-owned entities that held shares arguedargued for for restraint, restraint, officials officials in- in- courtcourt dissolved dissolvedThepremier condemnationthe the Parliament, at Parliament, the came time, from Wen Jiabao, as well as telecommunications companies and other unmanned drones, so thatBritishBritish a new bank tobank interviews HSBC HSBC Holdings Holdings and — — paidpublic paid for for its filings.its The judges, who were appoint- panythat in was the aftermath reviewedhigherhigher of the by level,” level,” Asian The Ma Ma financial NewMingzhe, Mingzhe, York cri chairman chairman- of of president would inherit clear for greater latitude to carry out ContinuedContinuedan the array on on then-head ofPage Page organizations. 10 10 of The China’s central bank — business ventures. in the insurer, regulatory and corporatesharesshares just just two two months months earlier, earlier, according according volvedvolved in in the the discussions discussions say.tion’s say. legal reasoning has not per- ed by Egypt’s ousted strongman, Supremesis. Council of the Judiciary PingPing An, An, implored implored in in a a letter letter to to Mr. Mr. Wen Wen records show. And bystandards all appearances, and procedures, Tai- ac- Bystrikes; June Justice 2004, Department the shares and held by the Wen calledtwo Times. the powerful decree “an officials unprece- with oversight of the The greatest source of wealth, by far, cording to two administrationtoto interviews interviews of- and and public public filings. filings. MoreMore broadly, broadly, the the administra- administra- Hosni Mubarak, joined liberal dented attack on judicial inde- thatthat was was reviewed reviewed by by The The New New York York hong got a sweet deal.ficials. The shares were State Department officials, and suaded many other countries industry.The survival of Ping An Insurance was at The matter may have lost relatives had already quadrupledtion’stion’s in legal legal value, reasoning reasoning has has not not per- per- and secular political leaders in pendence” Ping and urged An the presi- was not broken up. ByBy June June 2004, 2004,the the president’s the shares shares held counterterrorism held by by the the Wen Wen dent to“I rescind humbly it. A major request associ- that theTimes.Times. vice premier bought in Decembersome 2002 urgency for after one-quarter Nov. 6. But suadedsuaded many many other other countries countriesthat the strikes are acceptable opposing the decree. Because the ation stake,of judges, the officials Judges Club, were told in the fall of 1999. Di- with more than 300 dronerelativesrelatives strikes even had hadadviser, already alreadybefore John quadrupled quadrupled the O. Brennan,company in in value, value, have was listed on the The successful outcomePingPing An An was was of not not the broken broken lobbying up. up. of the price that anotherand some big 2,500investor people killed — the by calledlead for and a strike coordinate by courts the matter from a TYLER HICKS/THE NEW YORK TIMES thatthat the the strikes strikes are are acceptable acceptable Cold Ravagescourt dissolved the Parliament, the Central Intelligenceeven even Agency before before theargued the company company for restraint, was was listed listed officials on on the in-the under international law. For acrosshigherrect Egypt. level,”Theappeals leader Ma of the were Mingzhe, made The chairmanThe to successful successful the of vice outcome outcome premier of of the theat lobbying lobbying British bank HSBC Holdings — paid for its Hong Kong Stock Exchange. And by 2007, ColdCold Ravages Ravagesnationaleffort lawyers’ association would en- pProspectsrove monumental. Worsen for Mideast Peace Talks and the military since Mr. Obama volved in the discussions say. underunder international international law. law. For For Continued on Page 10 dorsed the call. shares just two monthsfirst took earlier, office, the according administra-HongHong Kong Kong Stock Stock Exchange. Exchange. And And by by 2007, 2007, years before the Sept. 11, 2001, at- Pingthe An, time, implored Wen in GirlsJiabao, a letterat a effortGazaeffort to schoolas Mr.would wouldwell were Wen stunned p asproverove tothe findmonumental. monumental. itthen-head closed. An emboldened Hamas may lead Israel to harden its stance. Page 12. yearsyears before before the the Sept. Sept. 11, 11, 2001, 2001, at- at- A judicialPing strike would An be the went on to become one of Chi- to interviews and publiction isfilings. still pushing to makethethe theinitial initialthe $65 $65 initial millionMore million broadly, investment$65 investment million the administra- made made investment by by made by steepestthatof escalation China’s was yet reviewed in a centralpoliti- by bank ThePing Ping New — Antwo An York went wentpowerful on on to to become becomeofficials one one of of Chi- Chi- rules formal and resolve internal tion’s legal reasoning has not per- tacks,tacks, the the United United States States routinely routinelytacks, the United States routinely Syria RefugeesSyriaSyria calRefugees Times.Refugees struggle between the coun- na’sna’s largest largest financial financial services services companies, companies, a a By June 2004, the sharesuncertainty held and by disagreement theTaihongTaihong Wen Taihongwould would be be worth worth would $3.7 $3.7 billion.be billion. worth $3.7 billion. try’s newna’s Islamist largest leaders and financial services companies, a relatives had alreadyabout quadrupled exactly when lethalin value, action suaded many other countries condemnedcondemned targeted targeted killings killingscondemned of of targeted killings of the institutionswithPing An ofoversight the was old authori- not broken of the up.$50$50 industry. billion billion powerhouse powerhouse now now worth worth more more MaMa Mingzhe, Mingzhe, left, left, head head of of Ping Pingis justified. An, An, and and CorporateCorporate that records records the strikes show show that are that acceptable the the rela- rela- tarian $50 government billion over the powerhouseLobbying, now a worth Windfall more andMa a Mingzhe, Leader’s evenleft, Family before head the ofcompany PingMr. Obamawas An, listed and hisand adviserson the Corporate records show thatsuspectedsuspected the rela- terrorists terrorists by by Israel, Israel, draftingThe of asuccessful new constitution. outcome ofthanthan the A.I.G., lobbyingA.I.G., MetLife MetLife or or Prudential. Prudential. And And be- be- PrimePrime Minister Minister Wen Wen Jiabao Jiabao of ofare China. China. still debating whether re- ContinuedContinued on on Page Page 18 18 suspected terrorists by Israel, Cold Ravages AsAs Aid Aid Falters “IFalters humbly request that the vice premier Hong Kong Stock Exchange. And by 2007, under international law. For andand most most countries countries still still object object to to Thoseeffort thantensions would have A.I.G., flared prove since monumental. MetLife or Prudential. And be- Prime Minister Wen Jiabaomote-control of China. killing should be a years beforeContinued the Sept. 11, 2001, on at-Page 18 As Aid Falters Mr. Morsilead announced and his coordinate decree the matter from a higher the initial $65 millionmeasure investment of last resort made against im-by ContinuedContinued on on Page Page 14and 14 most countries still object to on Thursday,Ping saying An went he acted on to to becomeChinese one Insurer’s of Chi- Regulatory Victory Proved a Boon to Premier’s Relatives minent threats to the United tacks, the United States routinely Syria Refugees preventna’s largest the old-guard financial courts services companies, a Taihong would be worthStates, $3.7 or abillion. more flexible tool, from level,”dissolving the MaConstitution- Mingzhe, chairmanBy DAVID BARBOZA of Pinghind An, the scenes, im - shares inquirement Ping An that The that Times investigation big financial has found, came companiesavailable to help be allied bro govern-- condemned targeted killings of Continued on Page 14 al Assembly, as they had dis- Ma Mingzhe, left, head of Ping An, and Corporate recordsments show attack that their enemies the rela-or to ByBy NEIL NEIL MacFARQUHAR MacFARQUHAR$50 billion powerhouse SHENZHEN, now worth China more— The head of a fi- would be worth billions of dollars once the from the shares in Ping An bought about solvedplored an earlier assemblyin a letter and to Mr. Wen that was reviewed ken up. prevent militants from control- suspected terrorists by Israel, nancially troubled insurer was pushing company rebounded were acquired by rel- eight months after the insurer was granted thethan Parliament. A.I.G., MetLife or Prudential. And be- Prime Minister Wen Jiabao of China. Continuedling on territory. Page 18 As Aid Falters Chinese officials to relax rules that re- atives of Mr. Wen. a waiver to the requirement that big finan- and most countries still object to MDOUKHA,MDOUKHA, Lebanon Lebanon — — The The Though publicly the adminis- Mr.by Morsi The said his New expanded Yorkquired Times. breaking up the company in the af- The Times reported last month thatLong the cial before companies be most broken up. investors could buy Ping tration presents a united front on By NEIL MacFARQUHARwindswinds spilling spillingpowers, down down which off off he snow-cov- snow-cov- announced a termath of the Asian financial crisis. relatives of Mr. Wen, who became prime Long before most investors could buy Continued on Page 14 day after he won international MarthaMartha StewartStewartminister in 2003, had ClicksClicks grown extraordinari- WithPingWith An stock, Taihong, aa a companyTattooedTattooed that the use of drones, CrowdCrowd behind the Senate’sSenate’s LongLong SlideSlide toto Gridlock Gridlock Ping An was notThe survival broken of Ping Anup. Insurance was An stock, Taihong, a company that would soon praise for helping broker a cease- scenes there is longstanding ten- eredered Mount Mount Hermon, Hermon, bearing bearing the the at stake, officials were told in the fall of ly wealthy during his leadership, acquiring would soon be controlled by Mr. Wen’s rel- fire in Gaza, would last only until sion. The Defense Department MDOUKHA,By LebanonNEIL MacFARQUHAR — The 1999. Direct appeals were made to the vice stakes in tourist resorts, banks, jewelers, atives, acquired a large stake in Ping An firstfirst nip nip of of winter, winter,the new constitutionrattled rattledThe was the successfulthe ratified. bro- bro- outcome of the lobbying ef- be controlled by Mr. Wen’s relatives,and the C.I.A.acquired continue to pressa premier at the time, Wen Jiabao, as well as telecommunications But companiesBut after after and otherhis his business frombusiness state-owned partner, partner, entities that heldNYC, NYC,shares a a brand brand of of T-shirts T-shirts and and The judges, who were appoint- for greater latitude to carry out the then-head of China’s central bank — business ventures. in the insurer, regulatory and corporate winds spillingMDOUKHA, down off Lebanon snow-cov-ken ken — windows Thewindowsed of byof fortan Egypt’s an abandoned abandoned wouldousted strongman, prove el- el- monumental. KeithKeith large Bishop, Bishop, stake watched watched in Ping a a 5 5An a.m. a.m. fromlampslamps state-owned created createdstrikes; Justice from from entities Department vintage vintage and chil- chil- Martha twoStewart powerfulByBy CHRISTINE CHRISTINE officials with oversight HAUGHNEY HAUGHNEY of the ClicksThe greatest source of wealth, With by far, records show. And aby all appearances,Tattooed Tai- Crowd Senate’s Long Slide to Gridlock Hosni Mubarak, joined liberal State Department officials, and ByBy JONATHAN JONATHAN WEISMAN WEISMAN winds spilling down off snow-cov-ementaryementary school school where where Syrian Syrian industry. hong got a sweet deal. The sharesdren’sdren’s were sheets sheets (depicting (depicting cartoons cartoons ered Mount Hermon, bearing the Marthaand secular politicalPing leaders AnStewart inwent on to Clicksbecome one With of China’s arerunrerun Tattooed that of of a aheld Martha Martha shares Stewart StewartCrowd in pro- the pro- insurer,Senate’s regulatorythe president’s counterterrorism Long and Slide to Gridlock “I humbly request that the vice premier bought in December 2002 for one-quarter ered Mount Hermon, bearing the opposing the decree. Because the TonyTony Stinkmetal, Stinkmetal, a a many-tat- many-tat- adviser, John O. Brennan, have refugeesrefugees are are huddled huddled in in this this Be- Be- lead and coordinate the matter from a gramgram on on how how toof to the turn turnprice that a a another castoff castoff big investororor — superheroes), thesuperheroes), inspired inspired by by Ms. Ms. WASHINGTONWASHINGTON — — Senator Senator eded to to slow slow down down legislation legislation or or court dissolved the Parliament, argued for restraint, officials in- first nip of winter,first nip of rattledwinter, rattled the the bro- bro- largest financial higherservices level,” MaBut Mingzhe,companies, after chairman his business of aBut $50 partner, afterbil- hisNYC,corporate business a brandBritish records ofbank partner, T-shirtsHSBC Holdingsshow. and — paid AndNYC, for its by aall brandappearanc of - T-shirts and kaakaa Valley Valley hamlet. hamlet.Continued on Page 10 tooedtooed East East Village Village artist artist and and a a men’smen’s jacket jacket into intoshares a a throw throw just two blanket, monthsblanket, earlier, accordingStewart’sStewart’svolved emphasis emphasis in the discussions on say. on crafts- crafts- BobBob Dole Dole had had just just assumed assumed the the forceforce a a politically politically embarrassing embarrassing ken windows of an abandoned el- Ping An, implored in a letter to Mr. Wen More broadly, the administra- lion powerhousethat now was reviewedworthKeith by Bishop, Themore New watchedYork than A.I.G., a 5 a.m. lampses, Taihong createdto interviews from got vintageand a public sweet filings. chil- deal. 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From FromHong that Kongthat firstStock first Exchange. blan- blan- AndAlphabet byAlphabet 2007, under City City international tattooed tattooed law. way, way, For I’m I’m 1994,1994, when when he he confronted confronted a a prob- prob- tree’tree’ was was until until I I tried tried it, it, but but it it kaa Valley hamlet. tooedshares East Village in Ping artist An effort and that would a prove would monumental. be worth billions Stewart’s emphasis on crafts- Bob Doleyears had before justthe Sept. assumed 11, 2001, at- the force a politically embarrassing refugees are huddled in this Be- Tony Stinkmetal, a many-tat-men’s jacket into a throw blanket, price thatthe initialanother $65 million investmentbig investor madeor bysuperheroes), — the British inspired by Ms. WASHINGTON — Senator ed to slow down legislation or inging the the summer summer wearing wearing little little Ping An went on to become one of Chi-gram on how to turn a castoff uptightuptight too, too,tacks, and theand United I Ilike like States to to routinely do do things things lem.lem. turnedturned out out to to be be pretty pretty good,” good,” Mr. Mr. Hundreds of thousands of Syri- thatha Stewart Stewart devotee. devotee. ket,ket, the manshipthe two two men menand Taihong developedperfectionism. developed would be worth Golly Golly $3.7 billion. mantle of Senate majority leader, vote. fixtureSyria at Refugees the Artists and na’s Fleas largest financialhe decided services companies, to make a a similar condemned targeted killings of kaa Valley hamlet. moremore than than T-shirts T-shirtsof dollarsand and flip-flops, flip-flops, once the company reboundedMa Mingzhe, were left, head ofbank Ping An, HSBCand Corporate Holdings records show — that paid the rela- for its shares just DoleDole said, said, ruefully ruefully accepting acceptingforce a a a politically embarrassing ans displaced by the war, many of crafttooed bazaar East in Brooklyn, Village $50 would billion artist powerhouse and now worth a moremen’s jacket into“The a truththrow is, in blanket, my own little right,”Stewart’sright,”after saidthe saidsuspected Republican Mr. Mr. emphasis terrorists Stinkmetal, Stinkmetal, landslide by Israel, who who onof crafts-“IPiles Pilesnever of ofknew Republican RepublicanBob what Dole‘filling legislation legislation the had just assumed the than A.I.G., MetLifeblanket or Prudential. from And be- discardedPrime Minister Star Wen Jiabao of China. Continued on Page 18 them stumbling out of Syrianownow dur-face face the the onslaught onslaughtacquiredAs Aid ofFalters of winter bywinter relatives of Mr. Wen. Alphabettwo months City tattooed earlier, way, according I’m changedchanged1994, to when andhisinterviews his most hename name countries confronted from from still and object Michilini Michilinia to prob- tree’fromfrom was Newt Newt until Gingrich’s Gingrich’s I tried it, self-styled self-styled but it shareshare of of the the blame blame for for the the parlia- parlia- Hundreds of thousands of Syri- notfixture strike most at people the Artistsas a Mar- andWars Fleassheets. Fromhe that decidedfirst blan- to make a similar manship Continuedand perfectionism. on Page 14 mantle of Senate majority leader, vote. ing the summer wearingwithwith little inadequate inadequatetha Stewart shelter, shelter,The devotee. Times senior senior reportedket, last the month two men thatdeveloped the relGolly- uptightpublic too, filings. and I like to do things forforlem. professional professional reasons. reasons. turned“revolutionary”“revolutionary” out to be pretty House Housegood,” Mr. were were mentarymentary arms arms race race that that has has con- con- ans displacedmore by than the T-shirts war, and many governmentflip-flops,government of craft officials officialsBy NEIL bazaar MacFARQUHAR and and aid aid in or- or- Brooklyn, would blanket fromright,” discarded said Mr. Stinkmetal, Star who Ms.Ms.“ThePiles Stewart’s Stewart’s of truth Republican company, company, is, legislationin my Mar- Mar- ownDolestackingstacking little said, up ruefully up inafter in a a narrowly acceptingnarrowly the Republican divid- divid-a sumedsumed landslide the the Senate Senate of in in recent recent“I never knew what ‘filling the now face the onslaught of winter MDOUKHA,atives Lebanon of Mr. — The Wen, who became prime minister changedBy his June name 2004, from Michilini the shares held by the Wen share of the blame for the parlia- them stumbling out of Syriaganizationsganizations dur- notsay. windssay. spilling strike down off most snow-cov- peopleMartha as Stewart a Mar- ClicksWars With sheets. a Tattooed From thatCrowd firstSenate’s blan- LongthaAlphabetthafrom Stewart Stewart Slide Newt Gingrich’s Livingto City Living Gridlock tattooed Omnimedia, Omnimedia, self-styled way,ed,ed, more I’m more deliberate deliberate1994, when Senate, Senate, he and and confrontedyears.years. “I “I don’t don’ta prob- think think there’s there’stree’ any any was until I tried it, but it with inadequate shelter, “It senior“It will will be be ered winter winter Mountin 2003, Hermon, outside outside hadbearing and the andgrown extraordinarily wealthy dur- forrelatives professional had reasons. already quadrupledhashas“revolutionary” faced faced in some somevalue, difficult difficultHouse even blows were blows mentaryDemocratsDemocrats arms were race were that threatening threatening has con- to to credit.”credit.” ing the summer wearing little first nip of winter, rattled the bro- But after his business partner, NYC, a brand of T-shirts and uptight too, and I like to do things lem. turned out to be pretty good,” Mr. government officials and aid or- thaken windows Stewart of an abandoned devotee. el- Keith Bishop,ket, watched the a 5 two a.m. lamps men Ms.created developedStewart’s from vintage chil- company, Golly Mar- stacking up in a narrowly divid- sumed the Senate in recent winterwinter inside,” inside,” ing said said his Mohamed Mohamed leadership,By CHRISTINE acquiring HAUGHNEY stakes in tourist before the company waslatelylately listed — — on substantial substantial the Hong financial financial gumgum up up the the works works with with amend- amend- TheThe increased increased use use of of the the tactic, tactic, more than ganizationsT-shirts say.and flip-flops, ementary school where Syrian rerun of a Martha Stewart pro- dren’stha sheets Stewart (depicting Livingcartoons Omnimedia, Byed, JONATHAN more WEISMAN deliberate Senate, and years. “I don’t think there’s any Dole said, ruefully accepting a KhairKhair al-Oraiby, al-Oraiby,refugees a a are burly burly huddled 27-year- in 27-year- this Be- Tony Stinkmetal, a many-tat- gram on how to turn a castoff or superheroes), inspired by Ms. WASHINGTON losses, —right,”losses, Senator and and ed said to layoffs slow layoffs down Mr. and legislation and Stinkmetal, cutbacks cutbacks or mentsments who that that would wouldPiles stall stall the the of bills. bills. Republicanwhichwhich had legislationhad previously previously been been rare, rare, “It will be winter outside and kaa Valleyresorts, hamlet. banks,tooed jewelers, East Village artist telecommunications and a men’s jacket into a throw blanket, Stewart’shasKong faced emphasis Stock some on crafts- Exchange. difficultBob Dole blowshad just And assumedDemocrats by the 2007,force a were politically the threatening embarrassinginitial to credit.” now face the onslaught of winteroldold who who fled fled here Hundreds here over overof thousands the the of sum- sum-Syri- mantle of Senate majorityatchangedat itsleader, its magazines magazinesvote. his name and and television television from MichiliniMr.Mr. Dole Dole turned turned to to the the Senate’s Senate’s isis part part of of the the procedural procedural sharewarfare warfare of the blame for the parlia- winter inside,” said Mohamed fixture at the Artists and Fleas he decided to make a similar manshiplately and perfectionism. — substantial financial gum up the works with amend- The increasedfrom use of Newtthe tactic, Gingrich’s self-styled mermer with with his his wifeans wife displacedcompanies and and by two thetwo war, infants. infants. many and of craft other bazaar inbusiness Brooklyn, would ventures.blanket from discarded Star “The$65 truth million is, in my own investment little after the Republican madeprograms. landslideprograms. by of Taihong “IBut never But knew Ms. Ms. what would Stewart, Stewart, ‘filling the the the DemocraticDemocratic master master of of floor floor pro- pro- thatthat has has reached reached a a zenith zenith over over the the with inadequateKhair al-Oraiby, shelter, a burly senior 27-year- them stumbling out of Syria dur- not strike most people as a Mar- Wars sheets. From that first blan- Alphabetlosses, City andtattooed layoffs way, I’m and1994, when cutbacks he confrontedforments a prob-professional thattree’ waswould until stall I tried reasons. the it, but bills. it which had previously“revolutionary” been rare, House were mentary arms race that has con- old who fled here over “We the“We sum- already already ing wake wake the summer upThe up early wearing early greatest little be- be-tha Stewart source devotee. of wealth,ket, the twoby men far, developed The Golly uptightatbe too, its worth and magazines I like to $3.7do things andbillion.lem. television 71-year-old71-year-oldturned founder, founder, out to be pretty has has good,” emerged emerged Mr. iscedure, cedure,part of the Robert Robert procedural C. C. Byrd Byrd warfare of of West West pastpast two two years years in in the the Senate. Senate. Re- Re- government officials and aid or- more than T-shirts and flip-flops, right,” said Mr. Stinkmetal, who Piles of Republican legislationMs.Mr. Dole Dole Stewart’s said,turned ruefully to acceptingthe company, Senate’s a Mar- stacking up in a narrowly divid- sumed the Senate in recent mer with his wife and twocausecause infants. it it is is so so cold.”now cold.” faceTimes the onslaught investigation of winter has found, came from the changedprograms. his Corporatename from But Michilini Ms. records Stewart,from Newt Gingrich’s the showas as self-styledDemocratic something something thatshare the of masterofthe of relatives’ ablame a patron patron for of the floor parlia-saint saint pro- for for thatVirginia,Virginia, has reached who who taught ataught zenith him him over a a parlia-the parlia- publicanspublicans threaten threaten to to filibuster filibuster ganizations say. WithWith temperatures temperatureswith inadequate shelter, already already senior for professional reasons. “revolutionary” Houseentrepreneurialentrepreneurial were mentary arms hipsters, hipsters,race that has 20-con- 20- and and andand propose propose politically politically chargedyears. charged “I don’t think there’s any “We already wake up early be- governmentshares officials in and aidPing or- An bought about eight months Ms.71-year-oldstake Stewart’s of company, founder,that Mar- investment hasstacking emerged up in a narrowly thamostcedure, divid- Stewart likely sumed Robert thepeaked C. Senate Living Byrd in recentat of West Omnimedia,pastmentarymentary two years trick trick ed,in knownthe known more Senate. to to SenatedeliberateRe- Senate Senate, and cause it is so cold.” plungingplunging to to zero ganizationszero overnight overnight say. in in the the thaas Stewart something Living Omnimedia, of a patroned, more saint deliberate for 30-somethings Senate,30-somethingsVirginia, and years. who “I don’ttaught who, who, think in him there’sin a aapost-re- any post-re-parlia- publicansinsidersinsiders as threaten as “filling “filling to the the filibuster tree,” tree,” Mr. Mr. amendments,amendments, Democrats Democrats fill fill the the “It will be winter outside and “It will be winter outside and has faced some difficult blows Democrats were threateninghas to facedcredit.” some difficult blows Democrats were threatening to credit.” With temperatures hillshills already framing framingwinter this thisafter inside,” valley, valley, the said the Mohamedinsurer the hu- hu- was granted a waiver to the re- latelyentrepreneurial$2.2 — substantialbillion financial inhipsters, lategum up 20- 2007, the worksand the withcessionarycessionarymentary amend- last yearThe trick world,increased world, knownin use which have of have the to tactic, Senate begun begun andDoleDole propose recalled. recalled. politically charged amendmentamendment tree, tree, and and Republi- Republi- winter inside,” said Mohamed Khair al-Oraiby, a burly 27-year- losses,30-somethings and layoffs and cutbacks who, inments a that post-re- would stalllately the bills. which — had previously substantial been rare, financialamendments, Democrats fill the The increased use of the tactic, plunging to zero overnightmanitarianmanitarian in the crisisold crisis who fledfacing facing here over millions millions the sum- at its magazines and television Mr. Dole turned totheir thetheirinsiders Senate’s own ownis aspart pickling, pickling, “fillingof the procedural the cupcake cupcake tree,”warfare andMr. and TheThe convoluted convolutedgum procedure upprocedure the worksal- al- canscans with filibuster filibuster amend- in in retaliation. retaliation. hills framing this valley, the hu- mer with his wife and two infants. programs.cessionary But Ms. Stewart, world, the haveDemocratic begun master letterpress ofletterpress floorDole pro- recalled.that has businesses businesses reached a zenith over and and the are are amendment tree, and Republi- Khair al-Oraiby, a burly 27-year-ofof displaced displaced “We Syrians Syrians already wake is is up deepen- deepen- early be- 71-year-old founder, has emerged losses,past and two years layoffs in the Senate. Re- and cutbackslowslows the the majority majorityments leader leader that to to claimwould claim stallTheThe the tactic tactic bills. initially initially meant meantwhich to to had previously been rare, manitarian crisis facing millions their own pickling, cupcakecedure, Robert and C. Byrd of West cans filibuster in retaliation. ing.ing. More More than thancause a a itmillion ismillion so cold.” people people in in as something of a patron saint for Virginia, who taught sellinghimselling a parlia-The crafty crafty convolutedpublicans goods goods threaten online. procedure online. to filibuster al- allall opportunity opportunity for for offering offering speedspeed bills bills has has instead instead helped helped old who fled here over the sum- With temperatures already entrepreneurial hipsters, 20- and mentary trick knownat to Senate its and magazines propose politically charged and television is part of the procedural warfare of displaced Syrians is deepen- letterpressFREDFRED R. R. CONRAD/THE CONRAD/THE businesses NEW NEW YORK YORK and TIMES TIMES are lows the majority leader to claim The tactic initiallyMr. meantDole toturned to the Senate’s needneed of of aid aid remain remainplunging to out zeroout ofovernight of reach reach in the of of 30-somethings who, in a post-re- insiders as “filling the tree,”PilarPilar Mr. Guzman,amendments, Guzman, Democrats the the editor fill editor the in in changeschanges to to a a bill, bill, effectively effectively pre- pre- slowslow them them down. down. The The Senate Senate — — mer with hising. wife More and than atwo million infants. internationalpeopleinternational in hills relief relief framing this efforts, efforts, valley, the the hu- the TonyTony Stinkmetal, Stinkmetal, left, left, and and Keith Keith Bishop Bishopcessionaryselling say say world, craftythey they have are goods are begun inspired inspired online.Dole recalled. by by chiefprograms.chiefall of opportunityof Marthaamendment Martha But tree, Stewart Stewart forand Ms. Republi- offering Living Living Stewart, speed the bills hasDemocratic instead helped masterthethe legislative oflegislative floor body body pro- that that thatwas was de- de-has reached a zenith over the need of aid remain out of reach of manitarian crisis facing millions FRED R. CONRAD/THE NEW YORK TIMES their ownPilar pickling, Guzman, cupcake and theThe editor convoluted in procedure al- cans filibuster in retaliation. slowventingventing them any anydown. other other The senator Senatesenator — from from of displaced Syrians is deepen- letterpress businesses and are lows the majority leaderchanges to claim Theto a tactic bill, initially effectively meant to pre- “We already wake up early be-ContinuedContinued on on Page Page 8 8 MarthaMartha Stewart’s Stewart’s emphasis emphasis on on exacting exactingselling craftsmanship. crafty craftsmanship. goods online. 71-year-oldContinuedContinued founder, on on Page Page 4 4 has emergedproposingproposing an an amendment amendment intend- intend- ContinuedContinued on on Page Page 24past 24 two years in the Senate. Re- international relief efforts, the Tonying. More Stinkmetal, than a million people left, in and Keith Bishop say they are inspired by chief of Martha Stewartall opportunity Living for venting offering speed any bills other has instead senator helped from the legislative cedure,body that was Robert de- C. Byrd of West need of aid remain out of reach of FRED R. CONRAD/THE NEW YORK TIMES Pilar Guzman, the editor in changes to a bill, effectively pre- slow them down. The Senate — cause it is so cold.”Continued on Page 8 Marthainternational Stewart’s relief efforts, emphasis the Tony Stinkmetal, on exacting left, and Keithcraftsmanship. Bishop say they are inspired by chief of MarthaContinued Stewart Living on Pageventing 4 any other senatorasproposing something from the legislativean amendment body of that a waspatron intend-de- saint Continuedfor Virginia, on Page 24 who taught him a parlia- publicans threaten to filibuster With temperatures already Continued on Page 8 Martha Stewart’s emphasis on exacting craftsmanship. Continued on Page 4 proposing an amendmententrepreneurial intend- Continued on Page hipsters, 24 20- and and propose politically charged INTERNATIONALINTERNATIONAL 6-19 6-19 NATIONALNATIONAL 22-27 22-27 SUNDAYSUNDAY BUSINESS BUSINESS OBITUARIESOBITUARIES 28 28 mentary trickEDITORIALEDITORIAL known IN IN to SUNDAY SUNDAY Senate REVIEW REVIEW plunging toINTERNATIONAL zero overnight 6-19 in the INTERNATIONALNATIONAL 6-19 22-27 NATIONAL 22-27 SUNDAYSUNDAY BUSINESS BUSINESS OBITUARIES 28OBITUARIES30-somethings 28 EDITORIAL IN SUNDAY REVIEW who, inEDITORIAL a post-re- IN SUNDAYinsiders REVIEW as “filling the tree,” Mr. amendments, Democrats fill the hills framing this valley, theFreeFree hu- of of Brothels, Brothels,Free of Brothels, but but but at at at a aa Price PriceStates WantStatesStates Their SayWant Want Their TheirMario Say Sayvs. Angry Birds MarioMarioLarry Hagman vs. vs. AngryIs Angry Dead at 81 Birdscessionary BirdsThomas L. Friedman world,LarryLarryPAGE 11 have Hagman Hagman begun Is Is Dead Dead at at 81 81 ThomasThomas L. L. Friedman Friedman amendmentPAGEPAGE 11 11 tree, and Republi- Free of Brothels, but at a Price In India, theStates spread of Wantcellphones hasTheirGovernors Say say they fear that talks toMarioCheap vs. games Angry for mobile devicesBirds have The actor becameLarry a star on television’s Hagman Is Dead at 81 Thomas L. FriedmanDole recalled.PAGE 11 InIn India, India, the the spread madespread prostitutes of of cellphones cellphonesmore independent, has has avert the so-calledGovernorsGovernors fiscal cliff willsay say result they they fearchallenged fear that that Nintendo’s talks talks turf, to to but the vid- CheapCheap“I Dream games of games Jeannie” forand for achieved mobile mobile in-their devices devices own have have pickling,TheThe actor cupcakeactor became became anda a star star on on television’s television’s manitarianIn crisis India, the facing spread of millions cellphones has with an unexpectedGovernors result ofsay complicat- they fearin deepthat cuts talks to their to budgets, and theyCheapeo games game maker for is mobilepinning its hopesdevices on haveternational acclaimThe as the actor nefarious became a star on television’s The convoluted procedure al- cans filibuster in retaliation. mademade prostitutes prostitutesing the morefight more against independent, independent, AIDS. PAGE 6 want theiravert voicesavert heard. the the so-called so-calledPAGE 22 fiscal fiscalits new cliff Wii cliff U console.will will result resultPAGE 1 challengedchallengedJ. R. Ewing on “Dallas.” Nintendo’s Nintendo’s PAGE turf, 28turf, but butU(D5E71D)x+[!{!/!#!$ the the vid- vid- “I“I Dream Dream of of Jeannie” Jeannie” and and achieved achieved in- in- of displacedmade Syrians prostitutes ismore deepen- independent,withwith an an unexpected unexpectedavert result result the of so-calledof complicat- complicat- fiscal cliff inwillin deep deepresult cuts cuts to to theirchallenged their budgets, budgets, Nintendo’s and and they they turf, but theeoeo vid- game game maker maker“I Dream is is pinning pinning ofletterpress Jeannie” its its hopes hopes and achieved on on businesses in-ternationalternational andacclaim acclaim are as as the the nefarious lowsnefarious the majority leader to claim The tactic initially meant to with an unexpected result of complicat- in deep cuts to their budgets, and they eo game maker is pinning its hopes on ternational acclaim as the nefarious ing. More than a million peopleinging the thein fight fight against against AIDS. AIDS. PAGEPAGE 6 6 wantwant their their voices voices heard. heard. PAGEPAGE 22 22 itsits new new Wii Wii U U console. console. selling craftyPAGEPAGE 1 1goodsJ.J. R. R. online.Ewing Ewing on on “Dallas.” “Dallas.” PAGEPAGE 28 28 U(D5E71D)x+[!{!/!#!$U(D5E71D)x+[!{!/!#!$speed bills has instead helped ing the fight against AIDS. PAGE 6 want their voices heard. PAGE 22 its new Wii U console. PAGE 1 J. R. Ewing on “Dallas.” PAGE 28 U(D5E71D)x+[!{!/!#!$all opportunity for offering need of aid remain out of reach of FRED R. CONRAD/THE NEW YORK TIMES Pilar Guzman, the editor in changes to a bill, effectively pre- slow them down. The Senate — international relief efforts, the Tony Stinkmetal, left, and Keith Bishop say they are inspired by chief of Martha Stewart Living venting any other senator from the legislative body that was de- Continued on Page 8 Martha Stewart’s emphasis on exacting craftsmanship. Continued on Page 4 proposing an amendment intend- Continued on Page 24

INTERNATIONAL 6-19 NATIONAL 22-27 SUNDAY BUSINESS OBITUARIES 28 EDITORIAL IN SUNDAY REVIEW

Free of Brothels, but at a Price States Want Their Say Mario vs. Angry Birds Larry Hagman Is Dead at 81 Thomas L. Friedman PAGE 11 In India, the spread of cellphones has Governors say they fear that talks to Cheap games for mobile devices have The actor became a star on television’s made prostitutes more independent, avert the so-called fiscal cliff will result challenged Nintendo’s turf, but the vid- “I Dream of Jeannie” and achieved in- with an unexpected result of complicat- in deep cuts to their budgets, and they eo game maker is pinning its hopes on ternational acclaim as the nefarious ing the fight against AIDS. PAGE 6 want their voices heard. PAGE 22 its new Wii U console. PAGE 1 J. R. Ewing on “Dallas.” PAGE 28 U(D5E71D)x+[!{!/!#!$ C M Y KC M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2Nxxx,2012-11-25,A,018,Bs-BK,E2 C M Y K C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2Nxxx,2012-11-25,A,018,Bs-BK,E2 C M Y K C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2C M Y KNxxx,2012-11-25,A,018,Bs-BK,E2Nxxx,2012-11-25,A,018,Bs-BK,E2

18 Ø18N Ø N THE NEW YORKTHE TIMES NEW INTERNATIONALYORK TIMES INTERNATIONALSUNDAY, NOVEMBERSUNDAY, 25, NOVEMBER 2012 25, 2012 18 Ø N 18 Ø N 18THE NEW YORKØ N TIMES INTERNATIONALTHE NEW SUNDAY,YORK TIMES NOVEMBER INTERNATIONALTHE 25, NEW 2012 YORKSUNDAY, TIMES NOVEMBERINTERNATIONAL 25, 2012SUNDAY, NOVEMBER 25, 2012 18 Ø N 18 Ø N THE NEW YORK TIMES INTERNATIONALTHE NEW YORKSUNDAY, TIMES NOVEMBERINTERNATIONAL 25, 2012SUNDAY, NOVEMBER 25, 2012 18 Ø N Lobbying,Lobbying, a WindfallTHE NEWa YORKWindfall TIMES INTERNATIONALand aand ChineseSUNDAY, a NOVEMBER Chinese 25, Leader’s 2012 Leader’s Family Family Lobbying,Lobbying, a Windfall a andWindfallLobbying, a Chinese and a Lobbying, Windfall aLeader’s Chinese and Familya Lobbying,Leader’s Windfall a Chinese FamilyLobbying, anda Windfall Leader’s a Chinese a andWindfallFamily Leader’s a Chinese and Family a Leader’s Chinese Family Leader’s Family From Page 1 From Page 1 From Page 1 From Page 1 From Page 1 tives’ stake of tives’ that investment stake of that most investment most From Page 1 From Page 1 likely peakedFrom at Pagelikely $2.2 1 billionpeaked in at late $2.2tives’ 2007, billion stake in late of 2007, that investment mosttives’ stake of that investmenttives’ most stake of that investment most tives’ stake of that investmenttives’ most stake of that investment most the last year in thewhich last Taihong’s year in which share-likely Taihong’s peaked at share- $2.2 billion in late 2007,likely peaked at $2.2 billion in latelikely 2007, peaked at $2.2 billion in late 2007, tives’ stake of that investment mostthe last year in which Taihong’s share- likely peaked at $2.2 billion in latelikely 2007, peaked at $2.2 billion in late 2007, likelyholder peaked records at $2.2 wereholder billion publicly recordsin late available.2007, were publicly available. the last year in which Taihong’sthe share- last year in which Taihong’s share- the last year in which Taihong’sthe share- last year in which Taihong’s share- Because the companyBecause is nothe longer company holderlisted is no records longer werelisted publicly available.holder records were publicly available.holder records were publicly available. the last year in which Taihong’s share-Because the company is no longer listed holder records were publicly available.holder records were publicly available. holderin Ping records An’s were publicin publicly Ping filings, An’s available. it publicis unclear filings, if it isC unclearM Y ifK Because the companyNxxx,2012-11-25,A,018,Bs-BK,E2 is no longerBecause listed the company is no longer listed Because the company is no longerBecause listed the company is no longer listed the relatives continuethe relatives to hold continue shares.in Ping to hold An’s shares. public filings, it is unclearin ifPing An’s public filings, it is unclearin Ping if An’s public filings, it is unclear if Because the company is no longer listedthe relatives continue to hold shares. in Ping An’s public filings, it is unclearin Ping if An’s public filings, it is unclear if in PingIt An’s is also public not filings, knownIt is it whetheralso is unclear not knownMr. if Wen whether Mr. Wen the relatives continue to hold shares.the relatives continue to hold shares. It is also not known whether Mr. Wen the relatives continue to hold shares.the relatives continue to hold shares. the relativesor the central continue bankor to the chiefhold central shares.at the bank time, chief Dai at the time, Dai It is also not known whether Mr.It Wen is also not known whether Mr. Wen or the central18 bank chiefØ N at the time, Dai It is also not known whether Mr.It Wen is also not known whether Mr. Wen It isXianglong, also not known personallyXianglong, whether intervened Mr.personally Wen on be- intervened on be- or the central bank chief at theTHE time,or NEW the Dai YORK central TIMES bank INTERNATIONAL chief at the time,SUNDAY, Dai NOVEMBER 25, 2012 or the central bank chief at the time,or the Dai central bank chief at the time, Dai half of Ping An’shalf request of Ping for An’s a waiver, requestXianglong, or for a personallywaiver, or intervened on Xianglong,be- personally intervenedXianglong, on be- personally intervened on be- or the central bank chief at the time, Daihalf of Ping An’s request for a waiver, or Xianglong, personally intervenedXianglong, on be- personally intervened on be- Xianglong,if Mr. Wen personally was evenif Mr.intervened aware Wen was of on the even be- stakes aware of the stakes half of Ping An’s request for a waiver,half of or Ping An’s request for a waiver, or half of Ping An’s request for a waiver,half of or Ping An’s request for a waiver, or held by his relatives.held by his relatives.if Mr. Wen was even aware of the stakesif Mr. Wen was even aware of theif stakesMr. Wen was even aware of the stakes half of Ping An’s request for a waiver, orheld by his relatives. Lobbying, a Windfall and a Chinese Leader’s Family if Mr. Wen was even aware of theif stakes Mr. Wen was even aware of the stakes if Mr. WenBut wasinternal even Ping awareBut An internal of documents, the stakes Ping gov-An documents, gov- held by his relatives. held by his relatives. But internal Ping An documents, gov- held by his relatives. held by his relatives. held ernmentby his relatives. filingsernment and interviews filings and with interviews with But internal Ping An documents,But gov- internal Ping An documents, gov- ernment filings andFrom interviews Page 1 with But internal Ping An documents,But gov- internal Ping An documents, gov- Butbankers internal and Ping former Anbankers documents, senior and executives former gov- senior executives ernment filings and interviewsernment with filings and interviews with at Ping An indicateat Ping that An both indicate thebankers vice that both andtives’ the former stake vice of senior that investment executivesbankers most and former senior executivesbankers and former senior executives ernment filings and interviewsernment with filings and interviews with ernment filings and interviews with likely peaked at $2.2 billion in late 2007, bankers and former senior executivesbankers and former senior executives premier’s officepremier’s and the officecentral and at bank Ping the central An indicate bank that both the viceat Ping An indicate that both theat Ping vice An indicate that both the vice bankers and former senior executivespremier’s the office last year and in the which central Taihong’s bank share- at Ping An indicate that both theat Ping vice An indicate that both the vice at Pingwere An among indicate the were thatregulators among both the involvedthe vice regulators in involvedholder records in were publicly available.premier’s office and the centralpremier’s bank office and the central bank premier’s office and the central bank the Ping An waiverthe Ping meetings An waiver andwere who meetings amongBecause andthe whotheregulators company is involved no longerwere listed in among the regulators involvedwere amongin the regulators involved in premier’s office and the central bank premier’s office and the central bank in Ping An’s public filings, it is unclear if were among the regulators involvedwere amongin the regulators involved in had the authorityhad to the sign authority off onthe to the Ping sign An off waiver on the meetings and whothe Ping An waiver meetings andthe whoPing An waiver meetings and who were among the regulators involved inhad the authoritythe relatives tocontinue sign to offhold onshares. the the Ping An waiver meetings andthe who Ping An waiver meetings and who waiver. waiver. It is also not known whether Mr.had Wen the authority to sign off had on the authority to sign off on the the Ping An waiver meetings and whowaiver. had the authority to sign off had on the the authority to sign off on the had theOnly authority two large to Onlystate-run sign two off largefinancial on the state-run in- financialor the central in- bank chief at the time,waiver. Dai waiver. Only twoXianglong, large state-run personally intervenedfinancial onin- be- waiver. waiver. waiver.stitutions were grantedstitutions similar were grantedwaivers, similar waivers, Only two large state-run financialOnly in- two large state-run financial in- stitutions werehalf of grantedPing An’s requestsimilar for waivers, a waiver, or Only two large state-run financialOnly in- two large state-run financial in- filings show, whilefilings three show, of China’swhile three big of China’sif Mr. Wen big was even aware of the stakesstitutions were granted similar waivers,stitutions were granted similar waivers, Only two large state-run financial in-filings show, while three of China’s big stitutions were granted similar waivers,stitutions were granted similar waivers, stitutionsstate-run were granted insurancestate-run similar companies insurancewaivers, were companiesheld by werehis relatives. filings show, while three of China’sfilings big show, while three of China’s big filings show, while three of China’s big forced to breakforced up. Many to break of the up. state-run coun- Many of insurance theBut internal coun- Ping companies An documents, werestate-run gov- insurance companiesstate-run were insurance companies were filings show, while three of China’s big filings show, while three of China’s big ernment filings and interviews with state-run insurance companiesstate-run were insurance companies were try’s big banks compliedtry’s big bankswith the complied break-forced with to break the break- up. Many of the coun-forced to break up. Many of theforced coun- to break up. Many of the coun- state-run insurance companies weretry’s big banksbankers complied and former with senior the executivesbreak- forced to break up. Many of theforced coun- to break up. Many of the coun- forcedup torequirement break up. up Many— requirementenforced of the after coun- — the enforced fi- afterat Ping the An fi- indicate that both thetry’s vice big banks complied with thetry’s break- big banks complied with the break- try’s big banks complied with thetry’s break- big banks complied with the break- nancial crisis becausenancial of crisis concerns because aboutup requirementof concernspremier’s about — officeenforced and theafter central theup bankfi- requirement — enforced afterup the requirement fi- — enforced after the fi- try’s big banks complied with the break- were among the regulators involved in up requirement — enforced afterup the requirement fi- — enforced after the fi- the stability of the the stability financial of system thenancial financial — crisis system because — of concerns aboutnancial crisis because of concernsnancial about crisis because of concerns about up requirement — enforced after the fi-the stabilitythe of Ping the An financial waiver meetings system and — who nancial crisis because of concernsnancial about crisis because of concerns about by selling their by assets selling in othertheir assets institu- in otherhad institu- the authority to sign off onthe the stability of the financial systemthe stability — of the financial system — nancial crisis because of concerns aboutby selling their assets in other institu- the stability of the financial systemthe stability — of the financial system — the stabilitytions. of the financialtions. system — waiver. by selling their assets in otherby institu- selling their assets in other institu- tions. Only two large state-run financial in- by selling their assets in other by institu- selling their assets in other institu- by sellingPing their An assetsissuedPing in a statementother An issued institu- to a The statement to The tions. tions. Ping Anstitutions issued were a statement granted similar to waivers, The tions. tions. tions.Times saying theTimes company saying strictly the company com- strictlyfilings show,com- while three of China’s Ping big An issued a statement toPing The An issued a statement to The Times saying the company strictly com- Ping An issued a statement toPing The An issued a statement to The Pingplies An with issued rules aplies statement and with regulations, rules to The and but regulations,state-run but insurance companies Times were saying the company strictlyTimes com- saying the company strictly com- Times saying the company strictly com- does not know does the backgrounds not know the plies of backgrounds all with forced rules of to andbreak all regulations,up. Many of the plies but coun- with rules and regulations,plies but with rules and regulations, but Times saying the company strictly com- Times saying the company strictly com- try’s big banks complied with the break- plies with rules and regulations,plies but with rules and regulations, but entities behind entitiesshareholders. behind The shareholders. doescom- not know The thecom- backgrounds ofdoes all not know the backgroundsdoes of notall know the backgrounds of all plies with rules and regulations, butentities behindup requirement shareholders. — enforced The after com- the fi- does not know the backgroundsdoes of all not know the backgrounds of all doespany not knowalso said the “itpany backgrounds is the also legitimate said of“it all is right the legitimatenancial rightcrisis because of concernsentities about behind shareholders. Theentities com- behind shareholders. The com- entities behind shareholders. Theentities com- behind shareholders. The com- of shareholdersof to shareholders buy and sell to sharespany buy also and said sellthe stability shares“it is the of the legitimate financial system rightpany — also said “it is the legitimatepany right also said “it is the legitimate right entities behind shareholders. The com- by selling their assets in other institu- pany also said “it is the legitimatepany right also said “it is the legitimate right between themselves.”between themselves.”of shareholders to buy and sell sharesof shareholders to buy and sellof shares shareholders to buy and sell shares pany also said “it is the legitimate rightbetween themselves.”tions. of shareholders to buy and sellof shares shareholders to buy and sell shares of shareholdersIn Beijing, to China’s buyIn and Beijing, foreign sell shares China’s ministry foreign Ping ministry An issued a statement tobetween The themselves.” between themselves.” In Beijing, China’s foreign ministry between themselves.” between themselves.” betweendid notthemselves.” return did calls not seeking return comment calls seekingTimes comment saying the company strictly com-In Beijing, China’s foreign ministryIn Beijing, China’s foreign ministry In Beijing, China’s foreign ministryIn Beijing, China’s foreign ministry for this article. for Earlier, this article. a Foreign Earlier, did Min- not a Foreign returnplies with calls Min- rules seeking and regulations, commentdid but not return calls seeking commentdid not return calls seeking comment In Beijing, China’s foreign ministryfor this article.does not Earlier, know the a backgroundsForeign Min- of all did not return calls seeking commentdid not return calls seeking comment istry spokesmanistry sharply spokesman criticized sharply the criticizedentities behind the shareholders. Thefor com- this article. Earlier, a Foreignfor Min- this article. Earlier, a Foreign Min- did not return calls seeking commentistry spokesman sharply criticized the for this article. Earlier, a Foreignfor Min- this article. Earlier, a Foreign Min- for thisinvestigation article. Earlier, byinvestigation The a ForeignTimes into by Min- The the Times fi- intopany also the said fi- “it is the legitimateistry right spokesman sharply criticizedistry the spokesman sharply criticized the investigationof shareholders by The Times to buy intoand sell the sharesinvestigation fi- by The Times intoinvestigation the fi- by The Times into the fi- GILLES SABRIE FOR THEGILLES NEW YORK SABRIE TIMES FOR THE NEW YORK TIMES istry spokesman sharply criticizedistry the spokesman sharply criticized the istrynances spokesman of Mr. sharply Wen’snances relatives, criticized of Mr. Wen’s saying the relatives, it saying it GILLES SABRIE FOR THE NEW YORK TIMES nances of Mr.between Wen’s themselves.” relatives, sayingnances it of Mr. Wen’s relatives, saying it GILLES SABRIE FOR THE NEW YORK TIMES GILLES SABRIE FOR THE NEW YORK TIMES investigation by The Times intoinvestigation the fi- by The Times into the fi- investigation“smears by China The “smears and Times has into China ulterior the and fi- mo- has ulteriorIn Beijing, mo- China’s foreign ministry nances of Mr. Wen’s relatives, saying it “smears China and has ulterior mo- GILLES SABRIE FOR THE NEW YORK TIMES GILLES SABRIE FOR THE NEW YORK TIMES nances of Mr. Wen’s relatives, sayingnances it of Mr. Wen’s relatives, saying it tives.” tives.” did not return calls seeking comment“smears China and has ulterior“smears mo- China and has ulterior mo- GILLES SABRIE FOR THE NEW YORK TIMES nances of Mr. Wen’s relatives, saying ittives.” “smears China and has ulterior“smears mo- China and has ulterior mo- “smearsAfter China The andTimes hasAfter reported ulterior The Timeslast mo- month reported lastfor this month article. Earlier, a Foreigntives.” Min- tives.” After Theistry Times spokesman reported sharply last criticized month the tives.” tives.” tives.”on the family’s on wealth, the family’s lawyers wealth, repre- lawyers repre- After The Times reported last monthAfter The Times reported last month on the family’sinvestigation wealth, by The lawyers Times into repre- the fi- After The Times reported last monthAfter The Times reported last month senting the familysenting said the the family article said con- the articlenances of con- Mr. Wen’s relatives, sayingon theit family’s wealth, lawyerson repre- the family’s wealth, lawyers repre- GILLES SABRIE FOR THE NEW YORK TIMES After The Times reported last monthsenting the family said the article con- on the family’s wealth, lawyerson repre- the family’s wealth, lawyers repre- on thetained family’s unspecified wealth,tained errors lawyers unspecified and repre- that errors the and“smears that Chinathe and has ulteriorsenting mo- the family said the articlesenting con- the family said the article con- senting the family said the article con- family reservedfamily the right reserved to take the tained legal right unspecified to tives.” take legal errors and that tained the unspecified errors and thattained the unspecified errors and that the senting the family said the article con- senting the family said the article con- After The Times reported last month tained unspecified errors and thattained the unspecified errors and that the action. action. family reserved the right to take legalfamily reserved the right to takefamily legal reserved the right to take legal tained unspecified errors and that theaction. on the family’s wealth, lawyers repre- family reserved the right to takefamily legal reserved the right to take legal family In reserved addition, the the rightIn Chinese addition, to take government legalthe Chinese governmentsenting the family said the articleaction. con- action. action. action. blocked access toblocked the English-language access to theIn English-language addition,tained the unspecified Chinese errors government and that In the addition, the Chinese governmentIn addition, the Chinese government action. family reserved the right to take legal In addition, the Chinese governmentIn addition, the Chinese government and Chinese-languageand Chinese-language Web sites ofblocked The Web access sites of to The the English-languageblocked access to the English-languageblocked access to the English-language In addition, the Chinese governmentand Chinese-languageaction. Web sites of The blocked access to the English-languageblocked access to the English-language Times in China —Times and continues in China — to and do socontinuesIn to addition, do so the Chinese governmentand Chinese-language Web sitesand of TheChinese-language Web sites of The blocked access to the English-languageTimes in China — and continues to do so and Chinese-language Web sitesand of TheChinese-language Web sites of The and Chinese-language— saying the action— sayingWeb was sites “in the accordance ofaction The was “in accordanceblocked access to the English-languageTimes in China — and continuesTimes to do so in China — and continues to do so Times in China — and continues Timesto do so in China — and continues to do so with laws and rules.”with laws and rules.”— saying theand actionChinese-language was “in Webaccordance sites of— The saying the action was “in accordance— saying the action was “in accordance Times in China — and continues to do sowith laws andTimes rules.” in China — and continues to do so — saying the action was “in accordance— saying the action was “in accordance — sayingNeither the action Mr. Wen, wasNeither “inwho accordance is Mr. expected Wen, who to is expected— saying the to action was “in accordancewith laws and rules.” with laws and rules.” Neither Mr. Wen, who is expected to with laws and rules.” with laws and rules.” with retirelaws and in March, rules.” retirenor Mr. in Dai,March, who nor is nowMr. Dai, whowith laws is now and rules.” Neither Mr. Wen, who is expectedNeither to Mr. Wen, who is expected to Neither Mr. Wen, who is expected to the head of the Nationalthe head Socialof the NationalSecurityretire inSocial March,Neither Security nor Mr. Mr. Wen, Dai, who who is expected is nowretire to in March, nor Mr. Dai, whoretire is now in March, nor Mr. Dai, who is now Neither Mr. Wen, who is expected to Neither Mr. Wen, who is expected to retire in March, nor Mr. Dai, who is now retire in March, nor Mr. Dai, whoretire is now in March, nor Mr. Dai, who is now Fund, could be reachedFund, could for comment. be reachedthe head for comment. of the National Social Securitythe head of the National Social Securitythe head of the National Social Security retire in March, nor Mr. Dai, who is nowFund, couldthe be head reached of the National for comment. Social Security the head of the National Social Securitythe head of the National Social Security the headWestern of the National and ChineseWestern Social bankersSecurity and Chinese and bankersFund, could and be reached for comment.Fund, could be reached for comment.Fund, could be reached for comment. Fund, could be reached for comment.Fund, could be reached for comment. lawyers involvedlawyers in Ping involved An’s in2004Western Ping An’s andWestern 2004 Chinese and Chinese bankers bankers and andWestern and Chinese bankersWestern and and Chinese bankers and Fund, could be reached for comment. lawyers involved in Ping An’s 2004 Western and Chinese bankersWestern and and Chinese bankers and Hong Kong stockHong listing Kong and stock a subse- lawyers listing and involved a subse- in Ping An’s 2004lawyers involved in Ping An’slawyers 2004 involved in Ping An’s 2004 Western and Chinese bankers andHong KongHong stock Kong listing stock listing and and a subse- a subse- lawyers involved in Ping An’slawyers 2004 involved in Ping An’s 2004 quent 2007 listingquent in Shanghai 2007 listing said in they Shanghaiquent said 2007 they listing in Shanghai saidHong they Kong stock listing and aHong subse- KongALY stock SONG/REUTERS listing andALY SONG/REUTERSALY a SONG/REUTERS subse- SUKREESUKREE SUKPLANG/REUTERS SUKPLANG/REUTERSSUKREE SUKPLANG/REUTERS lawyers involved in Ping An’s 2004 ALY SONG/REUTERS SUKREE SUKPLANG/REUTERS Hong Kong stock listing and aHong subse- Kong stock listing and a subse- did not know thatdid relativesnot know of that Mr. quent relativesWen 2007 ofdid listing Mr. not knowWen inAbove Shanghai that relatives left, said Maof Mr. theyAbove quentMingzhe, Wen 2007 left, the listingMa chairman Mingzhe,Above in Shanghai left, Ma and the Mingzhe, saidchairmanchiefquent they executive the 2007 chairman and listing chief of and inPing Shanghaichiefexecutive An, executive struck said of of Ping they Pingthe An,gong struck struck at the the the gongShanghai gong at the atShanghai Stock the Shanghai ExchangeStock Exchange Stock asALY as theSONG/REUTERS Exchange the company company as list- list- the companyALY list- SONG/REUTERS SUKREE SUKPLANG/REUTERS SUKREE SUKPLANG/REUTERS Hong Kong stock listing and a subse- had acquired large stakes in the compa- ALYdid SONG/REUTERS not know that relatives of Mr.ALY SONG/REUTERS Wendid not know thatedAbove itsrelatives stock left,there of Ma inMr. 2007. Mingzhe, WenSUKREE Prime SUKPLANG/REUTERS Minister the chairman Wen Jiabao’s and relatives chiefSUKREE bought executive SUKPLANG/REUTERS Ping An of stock Ping quietly An, struckthrough athe series gong of investment at the Shanghai vehicles. It Stockis Exchange as the company list- quent 2007 listing in Shanghai saidquent they 2007 listing in Shanghai said they quenthad 2007 acquired listing inlarge hadShanghai stakes acquired saidin the large they compa- stakes in the compa-ed its stock thereed inits 2007.stock therePrime in Minister 2007. Prime Wendid Jiabao’sMinister notALY know SONG/REUTERS relatives Wen that Jiabao’srelatives boughtAbove relativesof left,Ping Mr. Ma WenAn bought Mingzhe, stock Pingquietly the An chairmanthroughAbove stock quietlyleft, a andseries Ma chiefthrough Mingzhe, of investment executive aSUKREE series the SUKPLANG/REUTERSchairman of vehicles.of Ping investment An, and It struckis chief vehicles. the executive gong It is at of the Ping Shanghai An, struck Stock the Exchange gong at the as Shanghaithe company Stock list- Exchange as the company list- had acquiredny. large stakes in the compa- not clear whether the relatives still own shares in the company. Top, Ping An is now building a new 115-story office tower in Shenzhen. did not know that relatives of Mr.did Wennot know that relativesAbove of left, Mr. Ma Wen Mingzhe,ny. the chairmanAbove left,ny. and Ma chief Mingzhe, executive the chairmanof Ping An,Executives and struck chief at the Morganexecutive gong Stanley at of hadthe andPing acquiredShanghai An, struck large Stocked stakes the its Exchange gongstock in the at therehad thecompa- as acquiredtheShanghaiin 2007. company large Prime Stock list-stakes Minister edExchange its in stockthe Wen compa- as there the Jiabao’s companyin 2007. relatives Prime list-ed bought itsMinister stock Ping there Wen An in Jiabao’sstock 2007. quietly Primerelatives through Minister bought a seriesWen Ping Jiabao’s ofAn investment stock relatives quietly vehicles. boughtthrough It Ping ais series An stockof investment quietly through vehicles. a series It is of investment vehicles. It is did not know that relatives of Mr. Wenny. Abovenot left, clear Ma whether Mingzhe,not theclear the relatives whether chairman still the ownand relatives chiefshares executive still in theown company. sharesof Ping in An, Top, the struck company. Ping theAn gongis Top, now atPing building the An Shanghai is a now new buildingStock 115-story Exchange a officenew 115-story toweras the incompany officeShenzhen. tower list- in Shenzhen. had acquired large stakes in the hadcompa- acquired large stakesed its in stockthe compa- there in had2007. acquired ExecutivesPrime large Minister atstakes Executives Morgan Wen in the Jiabao’s Stanleycompa- at Morganrelatives and Stanley boughtGoldman andSachs,Ping which An stock once held quietly sizableny. through a seriesnot clear of investment whetherny. the vehicles. relatives It stillis not own clear shares whether in the the company. relatives Top, still Pingown sharesAn is now in the building company. a new Top, 115-story Ping An office is now tower building in Shenzhen. a new 115-story office tower in Shenzhen. ed its stock there in 2007. PrimeExecutives Ministerstakes ated in Wen Morganits Ping stock AnJiabao’s and Stanleythere served relatives in as and2007. lead bought Prime PingMinister An stock Wen quietlyJiabao’s through relatives a seriesbought of Ping investment An stock vehicles. quietly throughIt is not cleara series whether of investment the relatives vehicles. still own It is shares in the company. Top, Ping An is now building a new 115-story office tower in Shenzhen. ny. ny. ny. Goldman Sachs,Goldman which once Sachs, held which sizable once held sizable ExecutivesCommission at in Morgan Beijing did Stanley not respondExecutives and back-office at Morgan operations, Stanley as well as and for- “They weren’t sure Ping An would company also sought the support of Dai not clear whether the relativesnot still clear own whether shares in the the relatives company.Goldman still Top, Sachs,ownunderwriters Ping sharesnot which clearAn for in onceis the whetherthenow Hong held company. building Kong sizable the public relatives Top,a newto inquiries.Ping 115-story still An own is nowofficeshares building tower in the in company.a Shenzhen. neweign 115-story shareholders. Top, Ping office An tower is now in Shenzhen.buildingsurvive,” a new said one 115-story former Ping office An exec- towerXianglong, in Shenzhen. the nation’s central bank Executives at Morgan StanleyExecutives and at Morgan Stanley and stakes in Ping stakes An and in served Ping An as andlead servedCommissionoffering, as leadalso said in theyCommissionBeijing were didnever Goldmannot intold Beijingrespond Sachs, did notwhich respond once heldGoldman sizable Sachs, which once held“They sizable weren’t “They sure Ping weren’t An would sure Ping An would Executives at Morgan Stanley andstakes in Ping An and served as lead HSBC, todayback-office Ping An’s largest operations,back-office share- as Mr. welloperations, Ma helped as for- manage as well the tiny as com- for- utive who spoke on the condition of ano-companychief, whoalso alsosoughtcompany had oversightthe alsosupport over sought theof Dai the support of Dai Goldman Sachs, which once heldGoldman sizable Sachs, which once held sizable underwriters forunderwriters the Hong Kong for thepublic Hong Kongtoof inquiries. the publicholdings. At Pingto inquiries. An’s urging,stakes the Commission inholder Ping with An about andin Beijing 15.5 served percent did stakes as of not lead its respond in pany PingCommission when An it back-office andwas founded servedin Beijingsurvive,” in operations, as1988. did lead Sev- said not one nymity. asrespondCommissionsurvive,” former well as said Ping back-office for- in one BeijingAn formerexec-“They did operations, Ping not weren’t Anrespondinsurance exec- as sure well industry. Pingback-office as for- An would operations,“Theycompany weren’t as well also sure assought Ping for- the An support would“They of weren’t companyDai sure also Ping sought An the would supportcompany of Dai also sought the support of Dai Goldman Sachs, which once held sizableunderwriters for the Hong Kong public eign shareholders.eign shareholders. Xianglong, the Xianglong, nation’s central the nation’s bank central bank stakes in Ping An and served stakes as lead in Ping An and served as lead offering, also saidoffering, they were also neversaid they told were twonever investment told banks had alsounderwriters ap- tostock, inquiries. declined for the to comment.Hong Kong Theunderwriters compa- public eralto years forinquiries. thelater,eign Hong he shareholders. was Kong looking public for big- There was alsoeign mounting shareholders.survive,” pressure said oneMr. former Wen was Ping in a unique An exec- position.survive,” HeXianglong, said one former the nation’s Ping An central exec- bankXianglong, the nation’s central bank Commission in Beijing did not respondstakesCommission in Pingback-office in AnBeijing and operations,did served not respond as lead as well Commissionback-office as for-pealedHSBC, in operations, in2000 “Theytoday Beijing to Mr. Ping weren’tWenHSBC, did as An’sand not well other today surelargest respond asreg- PingPing for- share- An’s Anback-office would “TheylargestMr. weren’t share- Macompany operations, helped sure also manageMr. Pingas sought Ma well An helpedthe asthe wouldtiny for- support manage com-company of“They the Daiutive tiny weren’talsowho com- soughtspoke suretoutive on theinquiries. Pingthe supportwho condition An spoke wouldof Daion of theano- companyconditionchief, alsoof who ano- sought alsoeign chief, had the shareholders. oversightsupport who also of overDai had oversightthe over the survive,” said one former Ping An exec- Xianglong, the nation’s central bank underwriters for the Hong Kongunderwriters public for the Hong Kong public of the holdings. ofAt the Ping holdings. An’s urging, At offering,Ping the An’s also urging, said thethey were never toldoffering,ny alsoHSBC, announced said today they last Ping weekwere thatAn’s never itoffering, largest is con-told share-alsoname said HSBC, shareholders they todayMr. were Ma from Ping helpednever the An’s Unitedtold manage largestfrom share-the the tiny government. com- Worriedutive who about spokewas on head the ofcondition China’s powerful of ano-utive Central whochief, spoke who on also the condition had oversight of ano- over the to inquiries. underwritersto inquiries.eign for shareholders. the Hong Kong public toeign inquiries. holdershareholders.ulators survive,”for with the waiver about holder said from 15.5 one the with percentformerbreakup about Ping ofsidering 15.5its Aneignsurvive,” percentexec-selling panyshareholders. its saidwhen stake ofXianglong, itsone in it Ping wasformerpany An founded the as whenPing nation’s Aninit was1988.exec- centralfounded Sev-survive,”Xianglong, bank innymity. 1988. said Sev- the one nation’s formersystemicnymity.HSBC, Ping central risks today An to theMr. exec- bankPing financial Ma An’s helped Xianglong, system, largestinsurance manage share- the theindustry. nation’s tinyinsuranceMr. com- Ma central helped industry. bank manage the tiny com- utive who spokechief, on who the alsocondition had oversightof ano- overchief, the who also had oversight over the offering, also said they were never told two investmenttwo banks investment had also banksof ap-the holdings. had also At ap-Ping An’s urging, ofthe the holdings.holder with At Ping about An’s 15.5 urging, of percent the the holdings. States. of its At Pingpany An’s when urging, it was the founded in 1988. Sev- nymity. Financial Work Commission, which hadinsurance industry. offering, also HSBC,said they today were Ping never An’s told largestoffering, share-HSBC, also today saidMr. Ping Mathey An’s helped were largest managenever share- told the tinyHSBC, Mr.com-stock,rule. Ma todayThe helpeddeclinedutive private Ping who manage equitytostock, An’s spokecomment. divisions largest declinedthe on tiny the of The share- the condition com-to compa- comment.part ofutive ofa broad ano- eralThe who effort yearscompa- spoke chief,to raise later, on whocapital. theeral he alsocondition wasyears had looking Inlater,holder oversight 1994,of ano- heforthe with wasprivatebig- overutive chief, looking about equity the who whoThere divisions 15.5for spoke also big- percent was of hadon alsoregulatorstheholder oversight ofThere condition mounting its with in was Beijing overpany of about alsoano- pressure steppedthewhen 15.5mounting it up percentwas their foundedMr. pressure been ofWen itsestablished inwas 1988.pany in Mr. ainSev- unique1998when Wen to overseenymity.itwas position. was in the foundeda unique He in position. 1988. Sev- He nymity. insurance industry. insurance industry. two investmenttwo investment banks banks had sold also their two ap- com- investmentstock, declinedMr. banksMa helpedto comment. had manage also The ap- the compa- tiny com- chief, who also had oversight over the of the holdings. At Ping An’s urging,of the the holdings.holder At Ping with An’s about urging, 15.5 the percentofholder ofthe pealed itsholdings. with panyin about2000 At when Pingto pealed 15.5 Mr. itAn’s Wen percentwas in urging, 2000 foundedand ofotherto the Mr. its in reg- Wen1988. and Sev-ny other announcednymity. reg- lastny announced week that itlast is weekcon-Pingnymity. An that todayname it is is a insurance shareholders con-hugely successfultwoname industry. investment from shareholdersMorgan stock, the Stanley United banksdeclinederal from years andinsurance had to Goldmanfrom the comment.later, also United industry. the he Sachs ap- was government. The enforcementlookingstock, fromcompa- declined the for Worried of government.big- eral laws to years that comment. about requiredThere later, Worried Thewashewas fi- was compa- country’s head also about looking mountingof banking, China’seral wasfor big- securitiesyears head pressure powerful later, of and There China’s insur- he Central was wasMr. powerful looking Wen also was mountingfor Central in big- a unique pressureThere position. was He Mr. also Wen mounting was in a pressure unique position.Mr. He Wen was in a unique position. He pealedholderpany in 2000 binedwhen with to stakes itMr. aboutwas Wento HSBCfounded 15.5and in percentother2005 in for 1988. reg- about of Sev- itsconglomeratepany when with revenueit was offounded $40 bil- in 1988. Sev- nymity. insurance industry. two investment banks had alsotwo ap- investmentstock, declined banks had to comment. also ap- Thetwo stock,compa- ulators investment declined for tothe comment. banks waiverulators had from forThe alsothe thecompa- waiver breakup ap- from thesidering breakup sellingThere sideringits was stake also selling in pealed mounting Ping its Aninny stake 2000 as announced pressure toin Mr.Ping Wen lastAn and as week otherpealed that reg- it in is 2000each con-ny paid to announced Mr. aboutname Wen $35 and shareholdersmillion lastsystemic other week to acquire reg- that risks from it nancialny tosystemic is theannounced thecon- institutions financial United risksname to last to system,limit theshareholdersfrom week the financial scope the that of government. it system, isance from con- regulators, the name Worried United as well shareholders as about China’sfrom big- thewas from government. head the of China’sUnited Worried powerfulfrom about the Central government.was head of Worried China’s aboutpowerful was Central head of China’s powerful Central eral years later, he was lookingulators stock,eralfor for big- years $1declinedthe billion waiver later, — to a he 14-foldfromcomment. was increasethe looking breakup The on compa-for their big-lion lasteral There year yearsStates. and was aboutlater, Mr. also 500,000he Wen wasStates. mounting insur- was looking in7.5 a pressure percentuniquefor big- interests position. ThereinMr. Ping He Wen An. was wasAt the also in atheir mountingunique business position. activities. pressure He Mr.Financial Wengest was financial Work in a institutions.FinancialuniqueCommission, position. Work which Commission,He had which had pealed in 2000 to Mr. Wen and otherpealed reg- in 2000 to Mr. Wen and other reg- rule. 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China’ssell At yearwere their 7.5 the new andpercenttold stakes insurance aboutto sell in interests regula- 500,000theirWhen stakes in to insur- transcriptsPing Mr. in An.Ma7.5 of metAt WhenPingpercent the regulators, An Mr.meetings intereststheir Ma businessmetandhegest told inregulators, financialPing activities. 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It is initialChina’sable investment. corporate documentsable corporate reviewed documents by reviewedtion, with by the secondtion, with largest theThousands insurer,secondonly largest a fully of pages integrated insurer, of publicly a financial Thousandsavail- institu-foronly taking of pages fullyrisks.vestments integratedof publicly ever avail- financial made inbegan only institu- a Chinesepressing fully integratedPing fi- An tobrokerage shed financial its trust houses institu-“Now, or Ping trust An’s companies; life insurancebrokerage is in thema houses his company or trust was companies; facingbrokerage insolven- houses or trust companies; ance agentstime, across they China. were It the is China’s largestable foreign ancetime,corporate in-agents theyIn an documents were across interviewBanks the China. were largest lastreviewed month,told It foreignis to DuanChina’s bysell their in-midsize stakestime, commercialBanksnancial theyin were were banks.institution.When told the Ping to nancial Mr. largest sell An Ma istheir institution. met foreign stakes regulators, in- in heBanksWhen toldand insuranceMr.were Ma told met tocompaniesandand sellregulators, securities insurance their hadstakesbusiness,vestments he tocompanies told choosein and to ever splitWhen had cyits made toand Mr. choose inasked Ma a met Chinese themvestmentscy regulators, and to fi- help asked evershore he them told made up to the help in a shore Chinese up the fi- them his company was facing insolven-them his company was facing insolven- Thousands of pages of publicly avail-Thousands of pages of publicly avail- The Times suggestThe Times that the suggest Ping Anthat theWeihong, Ping a An wealthy Wen family friend,able corporatetion, with documents the second reviewed largestable corporateby insurer,“Hetion, a haddocuments with allnancial the the qualities secondinstitution.reviewed of a great largest by en- insurer,tion, with a the secondand largest insurance insurer,loss, companies and a property had insuranceto chooseand and insurance thecy and askedcompanies them had to help to choose shore up the only fully integrated financial only institu-Thousands fully integratedvestments of pages of everfinancial publicly made institu- avail- in a Chineseonly trust fully fi- company integratedbrokerage andtrust financialhouses brokerage company or institu- trusthouse. and nowbrokerage companies; buildingbrokerage ahouse.Much new housesthem headquarters of the his orcompany’s company Muchtrust here companies;of earlywasthe company’sfacing success insolven-brokerage earlyto operate success houses in life orlifeto or trust andoperate property property companies; innancial lifeinsurance, insurance or institution. property divisionscompany’s insurance,trust company balancenancialcompany’s have sheet thin institution. margins,” by balance approving Mr. sheet by approving and insurancecy companiesand asked themhad to to choose help shorecy up and the asked them to help shore up the The vestments Timessaid suggest that ever the shares that made in the Ping in Ping a An Chinese actually The An Times fi-trust vestments suggestcompany that and ever brokerage the made Ping in Anhouse. a Chinesetrepreneur,” fi- says Yanthem Feng, his who company helped was facing insolven-to operatethem hisin lifecompany or property was facing insurance, insolven- able corporate documents reviewedable corporateby tion, documents with the second reviewed largest by insurer,abletion, stakes corporate with a the held seconddocuments by thestakes largestprime heldreviewed minister’s insurer, by the by prime a rela- minister’sIn late andrela- 2010, insurance PingIn An late companies added 2010, morePing hadin Anfire- Shenzhen, to added choose amore spectacular fire- 115-storyThe of- Times trust suggest company Much that theand ofbut the brokerage Ping not company’s both. An house.intotrustbut early separate not company successboth. companies. and brokerage house.Ma wrote in the Sept. 29, 1999,to letteroperate tocompany’s in life or balance property sheet insurance,to by operate approving in life or property insurance, nancial institution. stakestion,nancial held withbelonged by institution. the the toprime second her and minister’s that largest it was insurer,anrela- acci- a nancialand wasinsurance institution. attributedcy andcompanies asked towas Mr. attributed them hadMa,run to ato hard-charg- Pingchoose help to An’sMr. shore ShanghaiMa,andcy up aand insurancethehard-charg- office asked in thethemcompanies to help had shore to choose upMuch the of thecy company’sanda Hongasked Kong themearly stock tosuccessa Muchhelp Hong offering, shore of Kong the up accordingcompany’s stock the offering, early according success company’s balance sheet by approvingcompany’s balance sheet by approving The Times suggest that the PingThe An Times suggest that the Ping An tives were concealedtives were behind concealed layers of behind layers of stakes heldficeIn towerbylate the 2010, that prime wasPing minister’s designed An addedstakes by rela- the more held1990s. fire-byIn the “He late prime was 2010, a quickminister’s Ping learner, An addedrela- knew moreAtIn fire- a late news 2010, conference Ping butAn in November notadded both. moreMr. fire- Wen. The contents werebut confirmed not aboth. Hong Kong stock offering, according trust company and brokerage house.Thetrust Timescompany suggestMuch and brokerage of that the company’s the house. Ping An early trustsuccesspower, companydent that toannouncing Mr. operate and Wen’s brokeragepower, relativesin a life $4 announcing billionorappeared house. property deal New athat insurance,$4 to billion York operateing architectural dealexecutive incompany’s that life or firm who propertying Kohn balance wasexecutive admired insurance, sheet who forby waswas approvinghis attributedto admired operateAfter for toin China’sMr.lifehis Ma,or property newaAfter hard-charg- insurance China’sinsurance,was attributed new regula- insurance toto Mr. transcripts regula-Ma, a hard-charg- ofwasto Ping transcripts attributed An meetings ofto PingMr. and Ma, An ameetings hard-charg- and but not both.a Hong Kong stock offering, accordinga Hong Kong stock offering, according tives wereMuch concealed of the company’s behind layersearlytives success of werepower, concealed Muchannouncing of behindthe company’sa $4 layersbilliontives were ofdealearlyhow that concealedsuccess to adapt to new behindcompany’s situations layers and balance was of 1999, sheet Ma Yongwei,by approving then the chairmanAftercompany’s China’s of by balancetwo new former insurance sheet top Ping by An regula- approving executives. stakes held by the prime minister’sstakes rela- held byIn the late prime 2010, minister’s Ping An added rela- morestakesIn fire-obscure late held 2010, by partnerships thePing prime Anobscure added minister’s rather partnerships more than rela- fire- being ratherhas inthan shareholding since beingbut givennot records. both.has it control sinceThe process given of in- the it Shen-Pedersen controlbut Fox. ofnot the both. 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Weihong, a wealthyWeihong, Wen afamily wealthy friend, InWen an family interview friend, last month, DuanIn anmidsize interviewmanagement commercial last and month, banks. political In Duan Ping an skills into interviewAnmidsize trouble— is and in commercial lastthe late month, 1990s, when banks. Duan Chi- Ping An is and securitiesinterviewsMa business, with proposed participants. theand formation to split of itsa holding held directlyzhen in their Development names. Bank, one of heldzhenChina’s directly Development in their Bank, names. one of China’s nowChina buildingbegan and Hong pressing a now new Kong building headquarters have Ping detailed An a to new shed here Ma headquarters itsbegan Mingzhe, trust pressing the Pinghere Ping An chairman An to shed its trust “He hadlife all andthe qualities propertymidsizelife“The of insurancea and separation great commercial property en- plans divisions have insurance banks. been sub- Ping divisions An is and securitiesloss, and business, property and insurance to andsplit securities its and loss, the business, and property and to split insurance its and the for taking risks. Weihong,zhenfor taking Developmenta wealthy risks. Wen Bank, family one friend, of China’s for takingtrepreneur,” risks.“Now, says trepreneur,”Ping Yan An’s Feng,na’s life whosays economy insurance helpedYan weakened Feng,began is“Now, in who afterpressinga Ping helped the 1997 An’s Ping life An insurance to shed its “Heis trust in hada all the“Now,trust qualities Ping companycompany An’sof a that great lifehavetrust would“He insurance en- thincompany had effectively margins,”all isthe havein sepa- qualities a Mr.thin margins,”of a great en-Mr. loss, and property insurance and the In an interview last month, DuanIn an interviewmidsize commercial last month, banks. Duan Ping Ansaid is that the sharessaid thatin Ping the Anshares actually in Ping inAnregulations Shenzhen, actually on thea spectacular in disclosure Shenzhen, of Weihong, corpo-115-story a spectacularnowand aof- chiefwealthy building executive,115-story Wen a new was of-family a headquarters highWeihong, friend, school a here nowwealthy building Wen afamily newinto separate headquartersfriend, companies.mittednowinto here separate building to the State companies. a Council newlife headquarters for and approv- property here insurance divisionslife and property insurance divisionslife and property insurance divisions midsizeIn an commercial interview“He had last banks. all the month, Pingqualities Duan An of is a greatmidsize en- commercialand securities banks. business, Ping An and is to andsplit run securitiesits Pingloss, An’sbusiness, and runShanghai property Pingand Asian to An’s office insurancesplit financial Shanghai its intrepreneur,” crisis. the and officesecurities the says in Yan the business, Feng, who and helped to trepreneur,”split its saysMa Yan wroterate Feng, life in who insurance thetrepreneur,”Ma helpedSept. wrote from 29, property in1999, says the letter Sept.Yan buttrust Feng,to 29, company 1999, who letter helped have to thin margins,” trustMr. company have thin margins,”trust Mr. company have thin margins,” Mr. belonged to herbelonged and that itto washer anandsaid acci- that that it“He wastherate had sharesan information all acci- the in qualitiesPing deemed An material ofactually a greatsaid to athat en-ingraduate theShenzhen, shares“He who hadgot ina his spectacularallPing start the Anas qualities an saidactually aide 115-story that to of athe great of-shares en- in Pingloss, An and actually propertyal,” insurance Ma Yongwei andtold the the intomedia, separateloss, adding and companies. property insurance and the Weihong, a wealthy Wen familyWeihong, friend, a nowwealthy building Wen afamily new headquartersfriend, Weihong,now here building a wealthy a new Wen headquarters family friend, here fice towerlife and that fice property was tower designed insurance that bywas the divisions designedlife and by property the insurance The divisionsin Shenzhen,bloatedrun state Ping sectora spectacular An’s beganAt a Shanghaito news col- 115-story conferencein officeShenzhen,At of- a news in in the a November conferencespectacular in 115-story Novemberkeep of-them under one corporateinto umbrel- separateMa wrote companies. in the Sept. 29,into 1999, separate letter tocompanies. trepreneur,” says Yan Feng,belonged whonowtrepreneur,” helped buildingtopublicly her and listed says a newthat company’s Yan it headquarters Feng,was operation, an who acci- helpedlike hereYuan trepreneur,”Geng,1990s. a pioneering “Hetrust says figure was companyYan 1990s. in a Feng,some quick “Hehave who learner, was thinhelped amargins,” knew quicklifetrust learner, andMr. company property knew have that insurance thin they margins,” would divisionsrun “deepen PingMr. reform An’strust of theShanghaiMr. company Wen. The officehave contentsrunMr. thin in Wen. Pingthe margins,” were The An’s confirmed contents ShanghaiMr. were office confirmed in the Ma wrote in the Sept. 29, 1999, Maletter wrote to in the Sept. 29, 1999, letter to said that the shares in Ping An actuallysaid that thein shares Shenzhen, in Ping a spectacular An actually 115-storydent of- that Mr. Wen’sdent thatrelatives Mr. Wen’sappeared relativesNew appeared Yorkinto separate architecturalNew companies. York belonged firm architectural fice Kohn to towerher and firm that that Kohn was it was designed belongedan acci- by lapse,to fice theher and and tower by 1998,that that some it was 1999, wasof the an Ma nation’s designed acci- Yongwei, fice1999, by then towerthe Ma the Yongwei, thatchairman was then At designedof the a news chairman byla, conference along the of with the in securities November and Attrust a di- news conference in NovemberAt a news conference in November saidin Shenzhen, that therun sharesa spectacular Ping in An’sPing Shanghai115-storyAn actually of- officedent inrun that in Shenzhen, the PingMr.the identitiesWen’s An’s a spectacular relatives Shanghaiof large shareholders appeared office115-story and in theof-of China’sinto howseparate earliest to Maadapt economic companies. wrote to how reformsnew in the tosituations adapt Sept. to29, andnew 1999,1990s. was situations letterintoMa “He wroteseparate to was and in awas companies.the quick Sept.insurance learner, 29, 1999, system.” knew 1990s.letter to “He was by a quicktwo former learner, top1990s.by knewPing two “He former An executives. was top a PingMr. quick Wen. An learner, executives. The contents knew were confirmedMr. Wen. The contents were confirmedMr. Wen. The contents were confirmed belonged to her and that it was anbelonged acci- to her and that it was an acci- in shareholding inrecords. shareholding The process records. in- ThePedersen detailsprocess about in-Fox. whetherPedersen companies Fox.dent con- thatNewand Mr. anrun early YorkWen’s Ping leader architecturalrelatives An’sof Ping ShanghaiAn. appeareddent firm that office biggestMr. KohnNew inWen’s banks the York wererelatives nearly architectural insolvent.appeared firmNew Kohn York architectural1999,Ma Ma wroteYongwei, firm vision. in Kohn the then Sept. the 29,chairman 1999, 1999,letter of Ma to Yongwei, then the chairman of fice tower that was designed belongedfice by the tower to1990s. thather and was “He that designed was it was a quick an by acci- the learner,fice knew tower thatAt wasa news designed conference by the in NovemberAtreally a news determined.Mr. conference Wen.really The He’d contents indetermined. November do whatever werehow He’d confirmed it to do Atadapt thewhatever a news Chinato new conference it Insurancesituationsthe China inand Regulatory November was Insurancehow to adapt Com- Regulatory to new situations Com- andhow was to adapt to newby situations two former and top was Ping An1999, executives. Ma Yongwei,by two thenformer the top chairman Ping An of executives.by two former top Ping An executives. dent that Mr. Wen’s relatives appeareddent that Mr. Wen’s relatives appeared volved borrowingvolved their borrowing governmentin theirshareholding1990s. governmenttrolling “He records. large was stakes a quickThe are processrelated learner, parties.in in- shareholding knewPedersenImpressed1990s. records. Fox. “Hewith Mr. was The Ma’s aprocess quickin intellect, shareholding in- learner,PingPedersen knew An’srecords. hard-won Fox.Mr. The Wen. fortunesprocess The were in- contents were confirmedthe ChinaMr. Wen. InsuranceRather TheThe contentsthan company, Regulatory an Rather out-and-outhewere said, confirmed Com-than wouldthe breakup,an re-es-China out-and-out Insurance breakup, Regulatory Com- New York architectural firmdentNew Kohn that York Mr. architecturalWen’s relatives firm appeared Kohn New York 1999, architectural Ma Yongwei, firm then Kohn the chairman1999, Maof Yongwei, then the chairman ofreally1999, determined.mission, Ma Yongwei, saidHe’d then thePushing Pedersenmission, do whatever agencythe chairmanBack Fox. said had theit the already Regulatorsof agency had alreadytablish itself as the Ping An Group, ac- Rather than an out-and-outthe China breakup, Insurance Regulatory Com- how to adapt to new situationsvolved andhow borrowingwas toBut adapt legal to experts theirnew saysituations government enforcement volvedand is was Mr. borrowing Yuanhow put takesto himadapt their to inby get chargeto two government newwhat former ofvolvedtakes situations human he wants.” totop borrowingget alsoPing and what evaporating. An was he executives. wants.” their Likeby twomost government formerbig Chinese top Ping An executives.really determined.mission,by two Mr. said formerHe’d Ma the do offered agencytop whatever PingreallyMr. a hadAn middle Ma determined. itexecutives. already offered road. a AfterHe’d middle do whatever road. After it Rather than an out-and-out breakup,Rather than an out-and-out breakup, in shareholding records. The processin shareholding in- Pedersen records. Fox. The process in- inPedersen shareholdingidentity Fox. cards records. andidentity obtaining The cards process their and in- signa-obtaining their signa-the China Insurance Regulatorythe Com- China Insurance Regulatoryinsurers, Com- Pingtakes An had to getwondrawn whatnew clientsup he plans wants.” drawnto split up up plans Ping toAn split and up Ping Ancording and to Ping An documentsmission, reviewedMr. said Ma the offered agency a hadmiddle mission, already road. said After the agency had already really determined. He’d doidentity whateverPedersenreally cardsPing often itdetermined. and Fox. lax,An’s obtaining particularly Close He’dPing their Call do inside An’s whatever signa- identity China. Close it resourcescards Call and at a obtaining Butstate-managed theRather company’s their industrial thansigna-But growththean out-and-out company’s drive ran breakup, growththeRather China drive than Insurance ran an out-and-outWith Regulatory his company breakup,takes Com- about to get to be what brokenseeking he wants.” advicetakes seeking of other to get advice investors, what ofhe other wants.” Mr. investors, Mr. Mr. Ma offered a middle road.Mr. After Ma offered a middle road. After volved borrowing their governmentvolved borrowing their government tures. tures. There is also, they say, a culture of park, reallyand eventually determined. at a new insuranceHe’didentity do cardswhateverwith investmentand obtainingit products othertheir that signa-insurers. guaran- up,other Ma Mingzhe,insurers. also knowndrawn as Rather Peterup plans bythan to The split an Times. out-and-out up HePing then An began breakup,anddrawn looking up plans to split up Pingdrawn An and up plans to split up Ping An and volved borrowingtakes to get their what government he wants.”tures. mission, said the agency Ping had mission, already An’s Close saidMr. the Call Ma agency offered had a Ping middle already An’s road.Butmission, Close the After company’s Call said the growth agency drive had ran alreadyBut the company’sMa proposed growth the driveMa Butformation proposed ran the company’s of the a holding formationseeking growth adviceof drivea holding of ran other investors, seeking Mr. advice of other investors,seeking Mr. advice of other investors, Mr. identity cards and obtaining theiridentity signa- cards and obtaining their signa- China and HongChina Kong and have Hong detailed Kongtakes have nomineetoMa get detailed Mingzhe, what shareholders he wants.” theMa — Pingwhen Mingzhe, one Antures. per- chairman thefirm, Ping takesPing An An,into to chairmanwhich get trouble what took root inhe the tures.inwants.”into Shen- late trouble 1990s,teed in bigwhen the returns late Chi- 1990s, Mr. over Ma longwhen offered periods Chi- a Ma,Ping middle fired An’s off road. letters Close to After leadersother Call inMr. Beijing,insurers. Ma offeredfor allies to a promote middle his proposal. road.other After insurers. identity cards and obtaining their signa- drawn up plans to split up Ping drawnAn and up plans to split up Ping An andinto troubledrawn “The upin plansthe separation late to 1990s,split“The plansup when Ping separation have Chi-into An been andtrouble plans sub- in have the latebeen 1990s, sub- when Chi- Ma proposed the formationother of insurers.a holdingMa proposed the formation of a holding tures. Ping An’s Close Call Pingregulations An’s CloseBut on the theregulationsCall company’s disclosure on growth of the corpo- disclosureChina drivePingBut and ranson An’s the of Hongholds corpo- company’s Close shares Kong on Call have behalf growth detailedof someone driveChina ranzhen, andMa a coastal HongMingzhe,Butna’s the boomtown. Kong economy company’s seeking the have Ping weakened detailedna’s advice AnChina growth economy chairman of andbased driveafter other HongMa on weakened theran theinvestors, Mingzhe, Kong high1997 seeking interest have after Mr. the rates detailed the Pingadvice banks 1997 An of chairmandictated otherMa investors, Mingzhe, memos reminding theMr. Ping“The himselfseeking Anseparation company to chairman adviceIn January plans that of other into wouldhave2000,company trouble with investors,been effectively Mr. thatsub- Ma’sin the wouldback- Mr. late sepa- 1990s, effectively when sepa- Chi- Ma proposed the formation of a holding tures. tures. and chiefother executive, insurers.and chief was executive,a high school wasother a high insurers. school na’s economymitted weakened to the Statemitted after Council the to the 1997 for State approv- Council for approv-ing, executives from Morgan “The Stanleycompany separation that plans would have effectivelybeen“The sub- separation sepa- plans have been sub- into trouble in the late 1990s,regulations wheninto Chi- troubleelse on — thethat in is disclosurethe difficult late for1990s, even of corpo- thewhenregulations most Chi-andMr. chief onMa’s theAsian timing executive, disclosure financialwasMa opportune. proposed was of crisis.Asian acorpo- Chi- high the financial schoolformationoffered forcrisis. deposits of a otherMaholding during proposed insurers. a time of the in- formation“buy golf clubs”of ana’s holding for high-ranking economy weakened offi-rate life afterinsurance thena’srate 1997 economy from life insurance property weakened from but after property the 1997 but company that would effectivelycompany sepa- that would effectively sepa- China and Hong Kong have detailedChina and HongMa Mingzhe, Kong have the detailed Ping An chairmanChinaMarate Mingzhe, and information Hong the Kong rate Ping deemed information have An chairman material detailed deemed to a materialgraduateseasoned to “The lawyerswho a gotseparation graduate and his accountants start who plans as angot to have aide his beenstarttointo sub- astrouble an aide in tothe lateregulations 1990s, flation.when and on When theChi- chief disclosure interest executive, ratesal,” of plummetedMa was corpo- Yongwei a highandal,” schooltold Ma chief the Yongwei executive,media, toldaddingmitted wastheMa media, a to proposed high the Stateandadding school Goldman the Council formation Sachs for wrote approv-of a mittedjointholding letter to the State Council for mitted approv- to the State Council for approv- na’s economy weakened afterrate the informationMa 1997 Mingzhe, deemed the Ping material An chairman to a graduatena was just“The whobeginning separation gotcompany tohis restructure start plans thatas itshavean would aide been to effectively sub-Asian financial“The sepa- separation crisis. planscials, and have kept been detailedAsian sub- financialcharts outlining crisis.keep them underAsiankeep one themfinancialcorporate under crisis. umbrel- onerate corporate life insurance umbrel- from property rate but life insurance from propertyrate but life insurance from property but regulations on the disclosure ofregulations corpo- and on the chief disclosure executive, of was corpo- a high schoolpublicly listed company’spublicly listed operation, company’s likena’s operation, Yuan economypenetrate. Geng, like weakened a pioneeringYuan Geng, after figure rate thea pioneering 1997 informationin somestate-ledna’s figure economy. economy deemedThe in Thesomebloated government material weakened staterateThe tobe- informationsector after abloatedin thebegangraduate the mid-1990s, state 1997 deemed to sector col-who lossescompany got material beganpiled his up. start to that to col- aas would anthegraduate aide lobbying effectively to whoresponsibilities got sepa- hisal,” startof Ma companyeach Yongweias top an aideto that Mr.told to would Wen the arguingmedia, effectively thatadding al,” a breakup sepa- Ma Yongwei told the media, adding regulationsand chief executive, on the disclosure was a high of corpo- school and chief executive,mitted to was the State a high Council school for approv-mitted to the State Council for approv- Themitted bloatedthat to theystate the State would sector Councilthat “deepenbegan they forto would reform col- approv- “deepen of the reform of the keep them under one corporateal,” Ma umbrel-Yongweikeep themtold the under media, one addingcorporate umbrel- rate information deemed material to a the identitiesAsian financialofthe large identities shareholderscrisis. of largepublicly and shareholdersAsian listed financialThe company’s Times and crisis. found operation, no indication likepublicly such Yuangan listed dismantlingAsian Geng, company’slapse, financial a thepioneering and rateiron operation, crisis.by rice life 1998,bowlpublicly lapse,figure insurance sys- somelike andin listed someof InbyYuan fromthe 1999, company’s1998, nation’s Geng,senior property some executives ratea operation,pioneeringof butthe life at nation’s insurancePing like figure An executive Yuanin from some Geng, property at Ping a Thepioneering An, but accordingbloatedthat rate they figure state to la, life would a along insector would insurance some “deepen with “violatebegan the la, fromChina’s reformtosecuritiesThe along col- bloated property policy with of theandto theencour-state trust but securities sector di- began and trust to col- di- keep them under one corporate umbrel- rate informationgraduate deemed who got material his start to as a anrategraduate aide information to who got deemed his start material as an aide to to a graduateof China’s whoal,” got Ma earliest his Yongweiof start China’s economic as told an earliestaidethe reformsmedia, to economical,” adding Ma Yongwei reforms told the media, addinglapse,al,” and Mainsurance by Yongwei 1998, somesystem.” told insuranceof the the media, nation’s system.” adding that theyla, along would with “deepen the securities reformthat of and theythe trust would di- “deepen reform of the publicly listed company’s operation, like details aboutThe bloated whetherdetails state about companies sector whether beganthe con- identities companies toThe col-regulations bloated of large con- stateor anyshareholders sectorlaw was beganbroken, andthe norto identities col-oftem, China’s which ofThe largebiggest had bloated earliest guaranteedshareholderskeep banks state economicthem were pensions, thesectorbiggest under identities andnearly began reforms banks onebegan insolvent.of corporate toof were toChina’s col- large acknowledge nearly shareholders umbrel- earliestkeep insolvent. that them the economic compa-under and one copyof reforms corporate China’sof those records lapse, earliestumbrel- verified andinsurance economic bykeep former 1998,vision. themsystem.” some reformsage under and of protectthe one lapse,nation’svision. corporateforeign and investment,” by umbrel- 1998, ac- some of the nation’s la, along with the securities and la,trust along di- with the securities and trust di- publicly listedYuan company’s Geng, a pioneeringoperation, likefigure publiclyinYuan some Geng, listed a company’spioneering operation,figure in some like Yuanand Geng,any anevidence that earlya pioneering theythat leader andMr. would Wen ofan figure Ping earlyheld “deepen sharesAn.in leader some reformsocial of Ping that insurance of An. the they and would living “deepen quarters to reformny could of soonthe be insolvent. As a joint- Ping An executives. cording to a copy of the letterinsurance reviewedvision. system.” insurance system.” lapse, and by 1998, some ofdetails the nation’slapse, about and whether by 1998, companiessome of the con- detailsnation’s and about an whetherearlyPing leader la, companies An’s alongof Ping hard-won with An.Ping con- the An’ssecurities fortunes hard-won biggestand were thattrustla, fortunes alongbanks theydi- with were would were the nearly “deepen securities insolvent. reform andbiggest trust of the di- banks wereThe nearly company, insolvent.biggest heThe said, company,banks would were he re-es- nearly said, insolvent. would re-es- vision. vision. the identities of large shareholdersthe identitiesand of of China’s large shareholders earliest economic and the reformsof China’sidentitiestrolling earliestlarge of large stakes trolling economic shareholders are large related reforms stakes and parties. areof related China’sinImpressed Ping parties. Aninsurance earliest under withhis economic ownsystem.”Impressed Mr. name. Ma’s reforms with intellect, Communist Mr.lapse,insurance Ma’s Party and intellect, cadres. system.”by 1998, somedetails of aboutthestockholding andnation’s whether an early company, companies leader Ping ofAn Ping had con- big An. andMr. anMa earlyfocused leader much of of his Ping personalla, along An. withby The the Times. securities The letter’s and authenticity trust di- biggest banks were nearly insolvent.trolling large stakes are related parties. Impressed withvision. Mr. Ma’s intellect, Pinginsurancevision. An’sPushing hard-won system.” Back Pushing fortunes the Regulators were BackPing the An’s Regulators hard-wontablish itself fortunes as tablishthe Ping were Ping itself An’s An asGroup, hard-won the Ping Theac- fortunes An company, Group, were heac- said, would re-es-The company, he said, would The re-es- company, he said, would re-es- details about whether companiesdetails con- aboutand whether an early companiesleader of Ping con- An. detailsand anBut early about legal leader whether experts ofBut Ping companies say legal An. enforcement experts con- say is andbiggest enforcement anMr. earlyAfter banks Yuan reviewingleader were isput him ofnearly Mr. questions Ping in Yuan chargeinsolvent.An. from puttrolling The of him human large inAlthough chargebiggest stakesalso Ping of banks are evaporating. humanAn wasrelated were founded nearly trollingalsoparties. 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Ma’s intellect,was verified by former executives at the But legal Times, experts the Securities say enforcement and Futures Com- is Mr.state Yuanentity, it put was him one Theof in the charge company,first Chi- of humancompanies. he said, wouldButalso many evaporating. re-es- of them refused Like mostadministrative big Chinese body,also evaporating. the Pushing State Council,cording Like Backtwo most investmentto the Ping big Regulators also ChinesecordingAn banks. documents evaporating. to PingPushing reviewed An Liketablish documents mostBack itself big the reviewed Chineseas Regulatorsthe PingPushing An Group, Back tablishac- the itself Regulators as the Ping An Group,tablish ac- itself as the Ping An Group, ac- trolling large stakes are related trollingparties. large Impressedstakes are related with Mr. parties. Ma’s intellect,trollingImpressedoften large lax, stakesPing with particularly An’soften Mr.are related Ma’s hard-won lax, inside intellect,parties. particularly fortunes China. Impressed insidePing wereresources An’s China. withhard-wonat a state-managed Mr.resources Ma’s fortunes at intellect,But a industrialstate-managed were legal expertsPinginsurers, industrial say An’s enforcement hard-wonPing AnButinsurers, had legal fortunes is won Ping expertsMr. new wereAn Yuan clients had say put won enforcement The him new With company,in clients charge his is company heofMr. human said,With Yuan about wouldhis put companyto be re-es-him broken in about chargeThe to ofbe company, humanbroken he said, would re-es- also evaporating. 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Ping began An banks He looking hadcording then won began to new Ping lookingclients An documents reviewedcording to Ping An documents reviewedcording to Ping An documents reviewed But legal experts say enforcementBut legal is expertsMr. Yuan say put enforcement him in charge is ofBut Mr. human There Yuanlegal put experts is also,him say inThere they charge enforcement say, is of also, a human culture they is say, ofMr.also a Yuanpark,evaporating. Kong culture and putStock eventually himofExchange Like inpark, chargemost declined atand abig new ofeventuallyto Chinese com- human insurancement at alsoa with new evaporating. Western insurance management Likeoften most sys- lax, bigchasing resourcesChinese particularly additional atPushing shares,a insidestate-managedup, which Ma China. 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He then began looking often lax, particularly inside often China. lax, resources particularly at a insidestate-managed China. industrialoftenresourcesnominee lax, atinsurers, particularly ashareholders state-managednominee Ping inside An — shareholders whenindustrialhad China. won one newper- —resourcesinsurers, clients whenfirm,ment. one PingPing atThe per-a With China state-managed AnAn, hadhisSecuritieswhichfirm, companywon Pingtook Regulatorynew industrial An,root about clients which in Shen-totems, betookinsurers, includingbrokenWith rootteed histhein Ping bigShen- usecompany of Anreturns actuaries hadThereteed about wonand over big is tonew have also,be long returnspark, broken clientsprovided they periodsand overneeded eventually say,cording With longcapital. a Ma, culture his tofired periodsat Ping companya new off of An letters insurance documentsandpark,Ma, about Wen to fired and leaders Jiabao,to offeventuallybe reviewed thenbrokenletters in viceBeijing, topremier. at leaders acording new The insurancein to Beijing,U.S., Ping we An could documents be required reviewed up, to disclose Ma Mingzhe, also known asup, Peter Ma Mingzhe, also known as Peter nominee shareholders — when one per-nomineefirm, shareholders Ping An, which —by when The took one Times. root per- in He Shen- then beganteed looking big returns over long periodsteed bigMa, returnsfired off letters over longto leaders teed periods in big Beijing, returns for over allies long to promote periods his proposal. for allies to promote his proposal.for allies to promote his proposal. 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January Shen- to He 2000, thenIn with January began Mr. Ma, looking Ma’s 2000, fired back- with off letters Mr. Ma’s to leaders back- in Ma,Beijing, fired off letters to leaders in Beijing, son holds shares on behalf of someoneson holdszhen, shares a coastal on behalf boomtown.for allies of someone to promote his proposal.based on the high interest rates banksbased ondictated the high memos interest reminding ratesbased banks himself on the to high interestIn January rates 2000, banks with Mr. Ma’s back-In January 2000, with Mr. Ma’s Inback- January 2000, with Mr. Ma’s back- nominee shareholders — when onenominee per- shareholdersfirm, Ping An,— when which one took per- root innomineefirm, Shen-else Ping —shareholders An, teedthat which is big difficultelse took returns— — when for rootthat even one overinis difficultShen- theper- long most forfirm,teed periods even Ping bigMr. the An,Ma’s returnsmostMa, which firedtiming over offtookMr. wasletters longrootMa’s opportune. toin timing periods leadersShen- wasChi- in teed Ma,Beijing,opportune. firedoffered big off returns for Chi-letters deposits toson overoffered leaders holds during long for inshares depositszhen, a periodsBeijing, time aon coastalof duringbehalf in-Ma,for boomtown. allies firedaof“buy time someone to off golf ofpromote letters in- clubs” tozhen, “buyhis leaders for proposal. a golf high-ranking coastal in clubs” Beijing, boomtown. for offi- high-rankingfor alliesing, to executives promote offi- ing, his from proposal. executives Morgandictated Stanley from memos Morgan reminding Stanley himselfdictated to memos reminding himself to else — thatRise is difficult of a forFinancial even the mostGiantelse — Thethat Mr.Ping is AnMa’sdifficult Insurance timing for Company even was thewasopportune. foundedmost in ShenzhenChi- inoffered 1988. At for that deposits time, the Chinese during insurance a time market ofoffered in- was dominated “buyfor deposits golf by a clubs”single during state-owned for a high-rankingtimeoffered giant, of People’sin- for deposits offi-Insurance.ing, during executives a time of from in- Morgan Stanleying, executives from Morgan ing, Stanley executives from Morgan Stanley son holds shares on behalf of someoneson holds shareszhen, a on coastal behalf boomtown. of someone sonzhen, holdsseasoned a coastal sharesbased lawyersboomtown. on onseasoned behalf the and high of accountants lawyerssomeoneinterest rates and tozhen, based accountants banksna a oncoastalwas thedictated just high toboomtown. beginning interestna memos was to just rates remindingrestructure beginning banks himself its tobaseddictated restructureflation. to on memos the When In highits January reminding interest interestelseflation. — 2000, that rates ratesWhen himself withis plummeted banksdifficultMr.interest Mr. Ma’s to Ma’s for ratesdictatedtiming evenback-In cials,plummetedJanuary thewas memos and most opportune. 2000,kept reminding detailedwithcials,Mr. Chi- Mr. andMa’s chartsMa’s himself kept timing back- outliningdetailed to was opportune.chartsIn andJanuary outlining Goldman Chi- 2000, Sachswithand Mr.Goldman wrote Ma’s “buya joint back-Sachs golf letter wrote clubs” a joint for high-ranking letter “buy offi- golf clubs” for high-ranking offi- seasoned lawyers and accountantsseasoned to na was lawyers just beginning and accountants to restructure to its flation. When interest rates plummetedflation. cials,When and interest kept detailedrates plummeted charts outlining and Goldman Sachs wrote a joint letterand Goldman Sachs wrote a jointand letter Goldman Sachs wrote a joint letter else — that is difficult for even theelse most — that is Mr.difficult Ma’s for timing even wasthe mostopportune.elseMr. Chi- —penetrate. Ma’sthat offeredistiming difficult forwaspenetrate. fordeposits opportune. even the during most Chi- a timeoffered Mr.ofstate-led in- Ma’s for deposits“buytiming economy. golf was state-ledduring clubs” Theopportune. agovernment economy. fortime high-ranking of Chi- in- The be- offered“buygovernment offi-in golf the for mid-1990s, clubs”depositsing, be- executives for seasonedduringin losses high-rankingthe mid-1990s, apiled from time lawyersna up. ofwas Morgan offi- lossesin- just and “buypiledbeginninging, Stanley accountants the executivesup. golf lobbying clubs”to restructure to fromresponsibilities fornathe high-ranking was Morganlobbying its just beginning Stanley responsibilitiesof offi-each top toing, restructure to executivesof Mr.each Wen topits from arguingflation.to Morgan Mr. When that Wen cials, Stanley ainterest arguing breakup and kept rates that detailed plummeted a breakup charts outliningcials, and kept detailed charts outlining penetrate.1994 Morgan Stanley and 1998penetrate. Afterstate-led the Asian economy.1999 The Ping government An executives be-2000in Wen the Jiabao’s mid-1990s, son losses2002 piled Regulators up. approvein the mid-1990s,2004the lobbying Ping An losses raises responsibilities $1.8piled up. of each top to Mr. Wen arguing that a breakupto Mr. Wen arguing that a breakup seasoned lawyers and accountantsseasoned to lawyersna was just and beginning accountants to restructure to seasonedna was itsThe just lawyersflation. Timesbeginning foundWhen and Theto accountants norestructureinterest Times indication rates found its to suchplummeted nona flation. indication wasgan justWhen dismantling cials, suchbeginning interest andgan thekept torates dismantlingrestructureiron detailed plummeted rice bowl charts itsthe sys- iron outliningflation.cials, rice and In bowlWhen 1999, keptand sys- interest senior detailedGoldmanpenetrate. executivesInrates charts 1999,Sachs plummeted senioroutliningstate-led wrote at Ping executives a economy.jointAncials,and letter executiveGoldman atand The Ping kept government An Sachsdetailed at Pingstate-ledexecutive wrote charts An,be- a accordingeconomy.joint outlining at Pingletter The toAn, aand government according Goldmanwould “violate tobe- Sachs a China’sin wouldwrote the mid-1990s, “violate apolicy jointthe toletter China’slobbying lossesencour- piledpolicy responsibilities up. to encour- of eachthe lobbying top responsibilities of each top to Mr. Wen arguing that a breakup The TimesGoldman found Sachs no each indication pay $35 financial such crisis,gan regulators dismantling step campaign the iron to prevent rice bowl sys-co-founds Inan I.T.1999, company senior executivesPing An’s proposal at Ping to avoid An a billionexecutive in Hong Kong at Pingpublic An, according to a would “violate China’s policy to encour-would “violate China’s policy to encour- penetrate. penetrate. state-led economy. 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The government be- in the mid-1990s, losses piled up. the lobbying responsibilities of each top age and protect foreign investment,” ac- In 1999, senior executivesregulations at Ping AnPing or An, any the lawlargest was foreign broken, insurance regulationsnor companiestem, or which and any ny lawcould hadthe waswould company. guaranteed soon broken, “violate beregulationsny insolvent. couldnor pensions, China’s soon tem,or AsAn anypolicybe contract. awhich insolvent.beganlaw joint- to wasencour- had to broken, acknowledge guaranteedAs a joint- nor pensions, that the compa-began tocopy acknowledge of thosecording records that to a theverifiedcopy begancording compa- of bythe to former toletter acknowledge acopy copy reviewed of of those the that letterrecords the reviewed compa- verified by former age and protect foreign investment,”age and ac- protect foreign investment,” ac- The Times found no indication The such Timesgan found dismantling no indication the iron such rice bowlganThe sys- anydismantling Times evidence found the that any noiron Mr. indicationevidence rice Wen bowl held that suchsys- shares Mr. WenganIn dismantlingsocial held1999, shares senior insuranceexecutive theexecutives socialiron and at Pingrice living insurance at bowl An,Ping quarters sys- according An and living toexecutiveIn to 1999, quarters a senior at Ping to executives An, according at Ping to An a executivewouldPing “violate An at executives. PingBritish China’s banktem, An,Ping HSBC policy according An which pays executives. to $600 encour- had to guaranteed a would “violate pensions, China’s policy to encour- copy of those records verified by former any evidenceinvestment that inMr. a Chinese Wen held sharesotherany financial evidencesocial institutions. insurancethat Mr. Wen and held living shares quarters to ny could soon be insolvent. As a joint-ny could2007Ping soon AnPing be executives.An insolvent.sells stock in As a joint- cording to a copy of the letter reviewedcording to a copy of the letter reviewed regulations or any law was broken,regulations nor tem,or any which law was had broken, guaranteed nor pensions,regulationstem,in which Ping began orAn had any under guaranteed tolawin acknowledgehis Ping was own Anbroken, name. pensions,under that nor his the own tem,began compa- name. Communist which to acknowledge copy had Partyof guaranteed thoseCommunist cadres. that records the pensions, Party compa-verified cadres. bybegancopy formerstockholding of to those acknowledgeTheage wife records and of company,then-vice anyprotectstockholding verified thatevidence premier foreignPing the by social compa- formerAncompany,thatExecutives investment,” had insuranceMr. big from Wen copyagePing Morgan andheld ac-of andAnMr. those protect hadshares living Ma bigrecords millionfocused foreign quarters forsocial verifiedaMr. 10much investment,” percent to insuranceMa ofby focused stakehis former personal andac- much livingage of andhisby quarters Thepersonalprotect Times. to foreign nyTheby couldTheinvestment,” letter’s Times. soon Pingauthenticity beThe Anac- insolvent. executives.letter’s authenticity As a joint- Ping An executives. cording to a copy of the letter reviewed in Ping An financialunder institution.his own name. Communist Party cadres. stockholding company, Ping An had big Shanghai,Mr. Maraising focused $5 billion. much of his personal by The Times. The letter’s authenticityby The Times. The letter’s authenticity any evidence that Mr. Wen heldany shares evidencesocial that insuranceMr. Wen held and shares living quartersanysocial evidence toAfter insuranceny reviewing that could and Mr. soon livingAfterWen questions be held quartersreviewing insolvent. shares from to questions TheAs socialny a joint- could insuranceAlthough from soonPing The be An Ping and insolvent. executives. living AnAlthough was quarters As foundedin Ping a Ping joint- to An An as was under anyPing foundedcouldinstitutional hisAn ownexecutives. soonWen cording as name.Jiabao bea insolvent.visits investors, intoinstitutional PingaPing copy An’s An Asof mostlyunderCommunist thea Stanley investors,joint- letter his stateand own reviewed Goldman PingPartycording name. mostlyenergy An cadres.Sachs executives.to a state oncopyin China’sPing of An.Communistenergy the highestletter on reviewed China’sstockholdingParty government cadres. highestcording company, governmentwas to verified a Ping copy Anby of stockholding formerwashadthe letterverifiedbig executives reviewed bycompany,Mr. former Ma at the focused executivesPing An much had at bigofthe his personalMr. Ma focused much of his personal by The Times. The letter’s authenticity After reviewing questions from The Although Pingchairman. An was A diamond founded as write a a institutionalletter to Wen Jiabao investors, mostly state Twoenergy investment on vehicles China’s highest government was verified by former executives at wasthe verified by former executives at the in Ping An under his own name. in Ping An underCommunist his own Party name. cadres. CommunistTimes,stockholding theParty Securities cadres.Times, company, and the Futures Securities Ping Com- An and stockholdinghad Futures statebig1995 entity, Com-A newcompany,Mr. lawit Ma wasordersstate focused Ping one entity, ofAn much the haditAfter wasfirst ofbig his one reviewingChi- personal ofMr. thecompanies. 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Securities companies Regulatory to experi-tems, including the use of actuaries andAn associatehave ofa provided Hong38-member Kong needed groupGroup. capital. whose senior lead-and Wen Jiabao, then viceconglomerate, premier. is buildingThe a U.S., we could be required to disclose Kong Stock Exchange declined Kongto com- Stockment Exchange with declined Western to management com- ment sys- with chasing Western additional management shares, sys- whichchasing would additionalers were shares, Prime which Ministerment. would The Zhu China ers Rongji were Securities Primewarned Regulatory Minister thatment. “as The a Zhu listed Chinatems, Rongjibillionaire company Securitiesincluding Chengwarned inYu-tung the theRegulatory use that of “as actuaries a listedtems, andcompany includinghave in the providedthe use of actuariesneeded capital. and have providedand needed Wen Jiabao, capital. then vice premier.and TheWen Jiabao,U.S., then we could vice premier. be required The to U.S., disclose we could be required to disclose Kong Stock Exchange declined to com- ment with Western management sys- chasing additional shares, which would ers were PrimeA company Minister that would Zhu later Rongji warned that “as a listed115-story company headquarters in in the ment. The China Securities Regulatory tems, including the use of actuaries and have provided needed capital. U.S., we could be requiredbegins acquiring to disclose large stakes ment. The China Securities Regulatory ment.tems, includingThe China the Securities use of actuaries Regulatory and tems,have providedincludingand needed theWen use Jiabao, capital. of actuaries then vice andNATALIE premier. BEHRING/REUTERShaveand TheWen provided Jiabao, needed then capital.vice premier. The andU.S., Wen we Jiabao, couldbe bepartly then required controlled vice premier. by to the disclose The U.S., we could be Shenzhen. required to disclose in Ping An using investment Delegates at the Ninth relatives of Wen Jiabao Rise of a RiseFinancial of a FinancialGiant The Ping Giant An Insurance The Ping Company An Insurance was founded Company in Shenzhenwas founded in 1988. in Shenzhen At that intime,vehicles 1988. the that AtChinese laterthat co-invest time, insurance thein Chinese market insurance was dominated market bywas a singledominated state-owned by a single giant, state-owned People’s Insurance. giant, People’s Insurance. National People’s Congress in acquires a Ping An stake. Rise of a Financial Giant The Ping An Insurance Company was foundedThe companiesPing in An Shenzhen withInsurance the relatives in Company 1988. At wasthat foundedtime, the in Chinese Shenzhen insurance in 1988. market At that was time, dominated the Chinese by a insurance single state-owned market was giant, dominated People’s by Insurance. a single state-owned giant, People’s Insurance. BeijingRise sought ofmeasures a Financialto RiseGiant of a Financial Giant The Ping An Insurance Company was founded in Shenzhen in 1988. At that time, the Chinese insurance market was dominated by a single state-owned giant, People’s Insurance. The Ping An Insurance Company was founded in Shenzhen in 1988. At that time, the Chinese insurance market was dominated by a single state-owned giant, People’sof Wen Jiabao. Insurance. Rise of a Financial GiantRise of a Financial Giant TheRise Ping1994 Anof Insurance Morgana Financial Stanley1994 Company andMorgan was Giant founded 1998Stanley The andAfterin ShenzhenPing the An1998 Asian Insurance in 1988.After the CompanyAt1999 thatAsian time, address wasPing the founded Anthe Chinese financialexecutives1999 in crisis. Shenzhen insurancePing An 2000executives inmarket 1988. Wen was At Jiabao’s thatdominated2000 time, son theWen by Chinesea Jiabao’s single2002 insurancestate-owned son Regulators market2002 giant, approve was People’sRegulators dominated 2004Insurance. approve by Pinga single An raises2004 state-owned $1.8 Ping An giant, raises People’s $1.8 Insurance. Goldman Sachs eachGoldman pay $35Sachs eachfinancial1994 pay crisis,$35 Morgan regulatorsfinancial Stanley crisis,step and regulatorscampaign1998 1994step to After prevent campaigntheMorgan Asian Stanley to preventco-founds and1999 1998 1994an Ping I.T. co-foundsAncompany AfterMorgan executives the StanleyAsianan I.T. Ping company and2000 An’s 1999proposal 1998 Wen PingJiabao’s Ping Afterto avoidAn’s An the son executivesproposal aAsian billion to 2002 avoid in Hong20001999 a Regulators Kong billion WenPing public Jiabao’s inapproveAn Hong executives son Kong 2004 public2002 2000 Ping An RegulatorsWen raises Jiabao’s $1.8 approve son 20042002 PingRegulators An raises approve $1.8 2004 Ping An raises $1.8 Goldman Sachs each pay $35 financial crisis, regulators step campaign to prevent co-founds an I.T. company Ping An’s proposal to avoid a billion in Hong Kong public 1994 Morgan Stanley and 19981994 After Morgan the AsianStanley and 19991998 Ping After An 1994the executives Asianmillion Morgan to acquire Stanley20001999million a stakeand Wen Pingto in acquire Jiabao’s 1998An executivesup a soneffortsstakeAfter the in to Asianbreak20022000up up efforts Regulators Wen to 1999Jiabao’s break regulatorsapprove up Pingson AnGoldman from executives20042002 breakingregulators Sachs Ping Regulators upeach Anfrom 2000 raisespay breakingthat approve$35 Wen$1.8 later Jiabao’sup financial winsGoldman a2004 lucrativethatson crisis, Sachs later Ping regulators Ping eachwins 2002An araisespay split-up.lucrative step $35Regulators $1.8 campaignPing financial approvesplit-up. crisis,to prevent regulators2004 stock stepPing offering. Anco-foundscampaign raisesstock $1.8 anto offering.I.T. prevent company Pingco-founds An’s proposal an I.T. company to avoid a billionPing An’sin Hong proposal Kong to public avoid a billion in Hong Kong public million to acquire a stake in up efforts to break up regulators from breaking up that later wins a lucrative Ping split-up. stock offering. Goldman Sachs each pay $35 financialGoldman crisis, Sachs regulators each pay step $35 campaignfinancial crisis,to preventGoldman regulatorsPing SachsAn, step the each largestco-foundscampaign Pingpay foreign $35 An, an tothe I.T.preventfinancial largest companyinsurance foreigncrisis, companiesregulators Pingco-foundsinsurance An’s step and proposal an companies campaignI.T. companytothe avoid company. toand aprevent millionbillionPing tothe acquire An’sincompany. Hong proposal a co-foundsKongstake An to publicin contract.avoid an I.T.aupmillion companyeffortsbillion Anto toacquirecontract. inbreak Hong aupPing stakeKong An’s publicin proposal regulatorsup effortsto avoid fromto abreak breakingbillion up upin Hong thatKongregulators later public wins from a lucrativebreaking Pingup split-up.that later wins a lucrative Ping stocksplit-up. offering. stock offering. Ping An, the largest foreign insurance companies and the company. BritishAn contract.bank HSBCBritish pays bank$600 HSBC pays $600 million to acquire a stake in upmillion efforts to to acquire break upa stake in regulatorsup efforts from to breakmillion breakinginvestment up to acquire up in a thata stakeregulators Chineseinvestment later in wins from upina lucrative abreakingefforts Chineseother to financial Pingup break split-up.up institutions.that other later financial winsregulators a institutions.lucrative from PingPing breaking stockAn,split-up. the offering.up largest that foreign later wins insuranceaPing lucrative An,stock thecompanies Pingoffering. largest split-up. foreign and theinsurance company. companiesstock and2007 offering. British PingAn thebank contract. Ancompany. HSBC sells2007 stock pays Ping in$600 An sells stockAn in contract. investment in a Chinese Theother wife offinancial then-viceThe institutions. wifepremier of then-vice Executives premier from MorganExecutives from millionMorgan for a 10 percentmillion stakefor a 10 percent stake 2007British Ping bank An sells HSBC stock pays in $600 British bank HSBC pays $600 Ping An, the largest foreign insurancePing An, thecompanies largest foreignand theinsurance company. companiesPing financialAn, andthe largest institution.An theforeign financialcontract. company. institution.insurance companiesAn and contract. the company. investment in a ChineseAn contract. The wifeotherinvestment of financialthen-vice in institutions.a premier Chinese Executivesother from financial Morgan institutions. Shanghai,million raisingfor a 10Shanghai, $5 percent billion. raisingstake $5 billion. 2007 Ping An sells stock in 2007 Ping An sells stock in financial institution.British bank HSBC paysWen $600Jiabao visitsBritishWen Ping Jiabao bankAn’s HSBC visitsStanley paysPing $600An’s and GoldmanStanley Sachs and British Goldmanin bankPing Sachs An.HSBCThe wifepaysin of $600Ping then-vice An. premier ExecutivesThe wife of from then-vice Morgan premier Shanghai, millionExecutives raising for a from$510 billion.percent Morgan stake million for a 10 percent stake investment in a Chinese otherinvestment financial in institutions.a Chinese other financialinvestment institutions. in a Chinese other financial institutions. financial2007 institution. Ping An sells stockWen inJiabao financial 2007visits institution. Ping Ping An’s An sells Stanleystock in and Goldman Sachs2007 Pingin Ping An An. sells stock in Shanghai, raising $5 billion. Shanghai, raising $5 billion. The wife of then-vice premier ExecutivesThe wife of from then-vice Morgan premier millionExecutives for a 10fromThe percent Morgan wifechairman. ofstake then-vice A diamondmillion premierchairman. for a 10AExecutives diamond percentwrite a stakefrom letter Morgan to Wenwrite Jiabao a letter million to Wen for Jiabao a 10Wen percent Jiabao stake visits Ping An’sTwo investmentStanleyWen Jiabao vehicles Twoand investment Goldmanvisits Ping Sachs An’svehicles inStanley Ping An. and Goldman Sachs in Ping An. financial institution. financial institution. financial1995 institution. A new law1995 orders A new law orders Shanghai, raising $5 billion.chairman. AShanghai, diamond raising $5Investment billion.write a letter vehicles toInvestment Wen controlled Jiabao Shanghai,vehicles controlled raising $5 billion. Two investment vehicles Wen Jiabao visits Ping An’s StanleyWen Jiabao and Goldman visits Ping Sachs An’s A innewStanley Ping law An. ordersand GoldmanWen companyJiabao Sachs visits partly Pingin controlledcompany PingAn’s An. bypartlyStanley controlledarguing and Goldmanthat by breaking arguingSachs up thatPingin breaking Ping An. up Pingchairman. A diamond partlyInvestment controlledwritechairman. avehicles letterbypartly the A todiamond controlled controlled Wen Jiabao GILLESby the SABRIE writeFOR THE a NEWGILLES letter YORK SABRIE to TIMES Wen FOR THE Jiabao NEW YORK TIMESTwo investment vehicles Two investment vehicles insurance companiesinsurance to companies1995 to 1995 A new law orders 1995 A new law ordersby associates of Chengby associates of Cheng Investment vehicles controlledGILLES SABRIEInvestment FOR THE NEW vehicles YORK TIMES controlled chairman. A diamond write a letter to Wen Jiabao her relatives occupiesTwoher investment relatives space occupiesvehiclesAn wouldcompany space damage partlyAn foreign controlledwould damage by foreignarguing company that breaking partly controlledup Ping mother by ofarguing companyWen Jiabao motherthat partly breakingshow of controlled Wen up Jiabao Ping bypartly show controlledarguing that by breakingthe up Ping partly controlled by the GILLESpartly SABRIE controlled FOR THE NEW by YORKthe TIMES GILLES SABRIE FOR THE NEW YORK TIMES A new law orders chairman. A diamond insurance Investmentcompanieswrite a letter tovehicles tochairman. Wen controlled Jiabao A diamond insurance companieswrite to a letter toinsurance WenTwo Jiabao investment companies vehiclesto Two investmentby associates vehicles of Cheng by associates of Cheng by associates of Cheng 1995 1995 A new law orders 1995choose A new between law orders chooselife and between life and Investment vehicles controlledher relatives GILLES occupies SABRIE FOR space THEInvestment NEW Yu-tung YORKAn TIMES vehicleswould buy a damage large controlledYu-tung stake foreign buy a large stake 2012mother Ping of An,Wen 2012today Jiabao a Pingshow An, today a company partly controlled by arguingcompany that partly breaking controlled upchoose Ping by betweenarguing life that and breaking companyin a up Pingpartly Ping An controlled officepartlyin building.a controlled Pingby Anarguing office by investment.the building. that breakingpartly upinvestment. Ping controlled by the her relativesGILLES SABRIE occupies FOR partlyTHE NEWspaceher controlled YORK Yu-tungholding TIMESAnher bya buywould stakerelatives the aher large damagein holding Ping occupiesstake Anforeign GILLESa stake space SABRIE in FORPing THE AnAn NEW would YORK TIMESdamage foreign mother of Wen Jiabao show mother of Wen Jiabao show insurance companies to insurance companies to insuranceproperty companies insurance toproperty and to insurancesell and to sell by associates of Cheng chooseby between associates life ofand Cheng in a Pingchoose An office between building. lifeby andassociatesfrom investment. the ofChina Cheng Merchantsfrom the China Merchants hugelyher successfulholdingYu-tung a hugely stake buy a in largesuccessful Ping stake An 2012Yu-tung Ping An, buy today a large a stake 2012 Ping An, today a 2012 Ping An, today a her relatives occupies space Anher would relatives damage occupies foreign propertyspace insuranceAn would and damage toher sell relatives foreign occupiesmother space of WenAn Jiabao would show damage foreignmother of Wen Jiabao showin a Ping An office building.motherworth offrom Wen $120 theinvestment. inJiabao million.aChina Ping worthshow MerchantsAn office$120 building.million. investment. her holding a stake in Ping An her holding a stake in Ping An choose between life and choose between life and chooseoff betweenother units. life andoff other units. Yu-tung buy a large stake propertyYu-tung insurance buy a and large toAn stakesell associate property of2012 HongAn insurance associate KongPing An,Yu-tung and of today Hong Group.to sellbuy a Kong a large stake2012Group. Ping An, today a conglomerate,worth from$120 theis million. conglomerate,building China Merchants a is building hugely a from successful the China Merchants hugely successful hugely successful in a Ping An office building. investment.in a Ping An office building.off other units.investment. her holding a stake in Ping An her holding a stake in AnPing associate An of Hong Kong Group. 2012 Ping An, today a worth $120 million. worth $120 million. property insurance and to sell property insurance and to sell from the Chinain Merchants a Ping An officeoff other building.from units. the Chinainvestment. Merchantsbillionaire offCheng otherhugely billionaireYu-tung units. successful Cheng Yu-tung her holding a stakeAn associate in Ping Anof Hong Kong Group.An associate of Hong Kongconglomerate, Group. is building a conglomerate, is building a conglomerate, is building a property insurance and to sell worth $120 million. worth $120 million.from Athe company China Merchants thathugely wouldA company successfullater that would later hugely115-story successful headquarters 115-story in headquarters in off other units. off other units. An associate of Hong Kong Group.An associate of Hong Kong Group. begins acquiring beginslarge stakes acquiring largebillionaire stakes Cheng Yu-tungworth $120 million.billionaire Cheng Yu-tung billionaire Cheng Yu-tung 115-story headquarters in 115-story headquarters in off other units. NATALIE BEHRING/REUTERSNATALIE BEHRING/REUTERS An associate of Hongconglomerate, Kong Group.is building a conglomerate, is buildingA company a that would laterconglomerate, Shenzhen.A is company buildingShenzhen. athat would later 115-story headquarters in be partlybegins controlled acquiringbe bypartlylarge the stakescontrolled by thebegins acquiring large stakes Shenzhen.A company that would later billionaire Cheng Yu-tung billionaire Cheng Yu-tung NATALIE BEHRING/REUTERSbillionairein Ping Cheng An using Yu-tung115-story investmentinNATALIE Ping headquartersAnBEHRING/REUTERS using investment in 115-story headquartersbe inpartly controlled by the begins acquiring large stakes Shenzhen. Shenzhen. Delegates at theA company DelegatesNinth that at thewould Ninth later A company that would later A companyrelativesin Ping that of AnwouldWen using Jiabaorelatives laterNATALIE investment BEHRING/REUTERSof Wen Jiabao 115-story headquartersbe partly controlledin by the be partly controlled by the begins acquiring large stakes begins acquiring largeDelegates stakes at the Ninth beginsvehicles acquiring that large laterShenzhen. vehiclesstakes co-invest that in later co-invest in Shenzhen. relativesin Ping of Wen An usingJiabao investment in Ping An using investment NATALIE BEHRING/REUTERS NATALIE BEHRING/REUTERS NationalNATALIE People’s BEHRING/REUTERSbe Nationalpartly Congress controlled People’s in by Congress the in be partly controlled by the Delegates at the Ninthbe partly acquiresvehicles controlled aDelegates Ping that by An lateracquires the stake. at co-invest the a NinthPing in An stake. Shenzhen. relatives of Wen Jiabao relatives of Wen Jiabao in Ping An using investment in Ping An using investmentNational People’s Congressin Pingin companies An using withinvestment thecompanies relatives with the relatives acquiresvehicles a Ping that An laterstake. co-invest in vehicles that later co-invest in Delegates at the Ninth Delegates at the Ninth DelegatesBeijing at sought the Ninthrelatives measuresBeijing of sought toWen Jiabao measures to relatives of Wen Jiabao National People’s Congressrelatives companiesinof WenNational Jiabao with People’s the relatives Congress in acquires a Ping An stake. acquires a Ping An stake. vehicles that later co-invest in vehicles that later co-investBeijing in sought measures vehiclesto of Wen that Jiabao. later co-investof Wen in Jiabao. companies with the relatives companies with the relatives National People’s Congress in National People’s Congress in Nationaladdress People’s the financialCongressacquiresaddress crisis. ina Pingthe financialAn stake. crisis. acquires a Ping An stake. Beijing sought measuresacquires to ofa PingWenBeijing AnJiabao. stake. sought measures to companies with the relatives companies with the relativesaddress the financial crisis.companies with the relatives of Wen Jiabao. of Wen Jiabao. Beijing sought measures to Beijing sought measures to Beijing sought measures to address the financial crisis. address the financial crisis. of Wen Jiabao. of Wen Jiabao. of Wen Jiabao. address the financial crisis. address the financial crisis. address the financial crisis. Taihong’s shareholder records were publicly Western and Chinese bankers and lawyers available. Because the company is no longer involved in Ping An’s 2004 Hong Kong stock list- listed in Ping An’s public filings, it is unclear if ing and a subsequent 2007 listing in Shanghai the relatives continue to hold shares. said they did not know that relatives of Mr. Wen It is also not known whether Mr. Wen or the had acquired large stakes in the company. central bank chief at the time, Dai Xianglong, Executives at Morgan Stanley and Gold- personally intervened on behalf of Ping An’s re- man Sachs, which once held sizable stakes in quest for a waiver, or if Mr. Wen was even aware Ping An and served as lead underwriters for the of the stakes held by his relatives. Hong Kong public offering, also said they were But internal Ping An documents, govern- never told of the holdings. At Ping An’s urging, ment filings and interviews with bankers and the two investment banks had also appealed in former senior executives at Ping An indicate 2000 to Mr. Wen and other regulators for the that both the vice premier’s office and the cen- waiver from the breakup rule. The private eq- tral bank were among the regulators involved in uity divisions of the two investment banks sold the Ping An waiver meetings and who had the their combined stakes to HSBC in 2005 for about authority to sign off on the waiver. $1 billion — a 14-fold increase on their initial in- Only two large state-run financial institu- vestment. tions were granted similar waivers, filings show, Thousands of pages of publicly available while three of China’s big state-run insurance corporate documents reviewed by The Times companies were forced to break up. Many of the suggest that the Ping An stakes held by the country’s big banks complied with the breakup prime minister’s relatives were concealed be- requirement — enforced after the financial cri- hind layers of obscure partnerships rather than sis because of concerns about the stability of being held directly in their names. the financial system — by selling their assets in In an interview last month, Duan Weihong, other institutions. a wealthy Wen family friend, said that the Ping An issued a statement to The Times shares in Ping An actually belonged to her and saying the company strictly complies with rules that it was an accident that Mr. Wen’s relatives and regulations, but does not know the back- appeared in shareholding records. The process grounds of all entities behind shareholders. The involved borrowing their government identity company also said “it is the legitimate right of cards and obtaining their signatures. shareholders to buy and sell shares between China and Hong Kong have detailed regu- themselves.” lations on the disclosure of corporate infor- In Beijing, China’s foreign ministry did not mation deemed material to a publicly listed return calls seeking comment for this article. company’s operation, like the identities of Earlier, a Foreign Ministry spokesman sharply large shareholders and details about whether criticized the investigation by The Times into companies controlling large stakes are related the finances of Mr. Wen’s relatives, saying it parties. But legal experts say enforcement is “smears China and has ulterior motives.” often lax, particularly inside China. There is After The Times reported last month on the also, they say, a culture of nominee sharehold- family’s wealth, lawyers representing the fam- ers — when one person holds shares on behalf ily said the article contained unspecified errors of someone else — that is difficult for even the and that the family reserved the right to take most seasoned lawyers and accountants to legal action. penetrate. In addition, the Chinese government The Times found no indication such regula- blocked access to the English-language and Chi- tions or any law was broken, nor any evidence nese-language Web sites of The Times in China that Mr. Wen held shares in Ping An under his — and continues to do so — saying the action own name. was “in accordance with laws and rules.” After reviewing questions from The Times, Neither Mr. Wen, who is expected to re- the Securities and Futures Commission of Hong tire in March, nor Mr. Dai, who is now the head Kong and the Hong Kong Stock Exchange de- of the National Social Security Fund, could be clined to comment. The China Securities Regu- reached for comment. latory Commission in Beijing did not respond to C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2 C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2 C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2

18 Ø N THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012

18 Ø N THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 18 Ø N THE NEW YORK TIMES INTERNATIONAL18 SUNDAY,Ø N NOVEMBER 25, 2012 THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Lobbying, a WindfallLobbying, and a Chinese a Windfall Leader’s and a Family Chinese Leader’s Family Lobbying, a Windfall and a ChineseLobbying, Leader’sFrom a Page WindfallFamily 1 and a Chinese Leader’s Family From Page 1 tives’ stake of that investment most From Page 1 tives’ stake of that investment From most Page 1 likely peaked at $2.2 billion in late 2007, the last year in which Taihong’s share- tives’ stake of that investment most likely peaked at $2.2 tives’billion stakein late of2007, that investment most likely peaked at $2.2 billion in late 2007, the last year in which Taihong’s share- holder records were publicly available. likely peaked at $2.2 billion in late 2007,Because the company is no longer listed the last year in which Taihong’s share- holder records were the publicly last year available. in which Taihong’s share- holder records were publicly available. Because the company is no longer listed in Ping An’s public filings, it is unclear if holder records were publicly available.the relatives continue to hold shares. Because the company is no longer listed in Ping An’s public filings,Because it is the unclear company if is no longer listed It is also not known whether Mr. Wen in Ping An’s public filings, it is unclear if the relatives continuein to Ping hold An’s shares. public filings, it is unclear if or the central bank chief at the time, Dai the relatives continue to hold shares. It is also not knownthe whether relatives Mr. continue Wen to hold shares. It is also not known whether Mr. Wen or the central bank chief at the time, Dai Xianglong, personally intervened on be- It is also not known whether Mr. Wenhalf of Ping An’s request for a waiver, or or the central bank chief at the time, Dai Xianglong, personallyor intervened the central on bank be- chief at the time, Dai Xianglong, personally intervened on be- half of Ping An’s request for a waiver, or if Mr. Wen was even aware of the stakes C M Y K Nxxx,2012-11-25,A,018,Bs-BK,E2Xianglong, personally intervened on be-held by his relatives. half of Ping An’s request for a waiver, or if Mr. Wen was even awarehalf of ofPing the An’s stakes request for a waiver, or But internal Ping An documents, gov- if Mr. Wen was even aware of the stakes held by his relatives. if Mr. Wen was even aware of the stakes ernment filings and interviews with held by his relatives. But internal Ping Anheld documents, by his relatives. gov- But internal Ping An documents, gov- ernment filings and interviews with bankers and former senior executives But internal Ping An documents, gov-at Ping An indicate that both the vice 18ernment filingsØ N and interviews with THE NEW YORKbankers TIMES andINTERNATIONAL former senior executivesSUNDAY, NOVEMBER 25, 2012 ernment filings and interviews withpremier’s office and the central bank bankers and former senior executives at Ping An indicate bankers that both and the former vice senior executives at Ping An indicate that both the vice premier’s office and the central bank were among the regulators involved in at Ping An indicate that both the vicethe Ping An waiver meetings and who premier’s office and the central bank were among the regulatorspremier’s involved office in and the central bank were among the regulators involved in the Ping An waiver meetings and who had the authority to sign off on the Lobbying, a Windfall and awere Chinese among the regulators involved Leader’s inwaiver. Family the Ping An waiver meetings and who had the authority tothe sign Ping off An on waiver the meetings and who Only two large state-run financial in- had the authority to sign off on the waiver. had the authority to sign off on the stitutions were granted similar waivers, waiver. Only two large state-runwaiver. financial in- From Page 1 filings show, while three of China’s big Only two large state-run financial in- stitutions were grantedOnly similar two waivers, large state-run financial in- tives’stitutions stake were of granted that investment similar waivers, most filings show, while three of China’s big state-run insurance companies were stitutions were granted similar waivers,forced to break up. Many of the coun- likelyfilings peaked show, atwhile $2.2 threebillion of in China’s late 2007, big state-run insurance filings companies show, while were three of China’s big thestate-run last year insurance in which Taihong’s companies share- were forced to break up. Many of the coun- try’s big banks complied with the break- state-run insurance companies wereup requirement — enforced after the fi- holderforced records to break were up. publicly Many of available. the coun- try’s big banks compliedforced with to the break break- up. Many of the coun- Becausetry’s big the banks company complied is no with longer the listedbreak- up requirement — enforced after the fi- nancial crisis because of concerns about try’s big banks complied with the break-the stability of the financial system — inup Ping requirement An’s public — filings, enforced it is after unclear the iffi- nancial crisis becauseup of requirement concerns about — enforced after the fi- thenancial relatives crisis continue because to of hold concerns shares. about the stability of the financial system — by selling their assets in other institu- nancial crisis because of concerns abouttions. theIt is stability also not ofknown the financial whether systemMr. Wen — by selling their assetsthe in stability other institu- of the financial system — Ping An issued a statement to The orby the selling central their bank assets chief at in the other time, institu- Dai tions. by selling their assets in other institu- Times saying the company strictly com- Xianglong,tions. personally intervened on be- Ping An issued a tions. statement to The halfPing of Ping An An’s issued request a statement for a waiver, to Theor Times saying the company strictly com- plies with rules and regulations, but Ping An issued a statement to Thedoes not know the backgrounds of all if TimesMr. Wen saying was theeven company aware of strictly the stakes com- plies with rules andTimes regulations, saying the but company strictly com- heldplies by withhis relatives. rules and regulations, but does not know the backgrounds of all entities behind shareholders. The com- plies with rules and regulations, butpany also said “it is the legitimate right doesBut internal not know Ping the An backgrounds documents, gov- of all entities behind shareholders.does not The know com- the backgrounds of all ernmententities behind filings shareholders. and interviews The withcom- pany also said “it is the legitimate right of shareholders to buy and sell shares entities behind shareholders. The com-between themselves.” bankerspany also and said former “it is the senior legitimate executives right of shareholders to buypany and also sell said shares “it is the legitimate right In Beijing, China’s foreign ministry atof Ping shareholders An indicate to buy that and both sell the shares vice between themselves.”of shareholders to buy and sell shares did not return calls seeking comment premier’sbetween themselves.” office and the central bank In Beijing, China’sbetween foreign themselves.” ministry wereIn among Beijing, the China’s regulators foreign involved ministry in did not return calls seeking comment for this article. Earlier, a Foreign Min- In Beijing, China’s foreign ministryistry spokesman sharply criticized the thedid Ping not An return waiver calls meetings seeking and comment who for this article. Earlier,did a not Foreign return Min- calls seeking comment hadfor thethis authorityarticle. Earlier, to sign a Foreign off on Min-the istry spokesman sharply criticized the investigation by The Times into the fi- for this article. Earlier, a Foreign Min-nances of Mr. Wen’s relatives, saying it GILLES SABRIE FOR THE NEW YORK TIMES waiver.istry spokesman sharply criticized the investigation by Theistry Times spokesman into the fi- sharply criticized the “smears China and has ulterior mo- GILLES SABRIE FOR THE NEW YORK TIMES investigationOnly two large by state-run The Times financial into the in- fi- nances of Mr. Wen’s investigationrelatives, saying by Theit Times into the fi- tives.” GILLES SABRIE FOR THE NEW YORK TIMES stitutionsnances of were Mr. grantedWen’s relatives, similar waivers, saying it “smears China andnances has ulterior of Mr. Wen’s mo- relatives, saying it GILLES SABRIE FOR THE NEW YORK TIMES After The Times reported last month filings“smears show, China while and three has of ulteriorChina’s big mo- tives.” “smears China and has ulterior mo- on the family’s wealth, lawyers repre- state-runtives.” insurance companies were After The Times reportedtives.” last month forcedAfter to The break Times up. Manyreported of thelast coun-month on the family’s wealth, lawyers repre- senting the family said the article con- After The Times reported last monthtained unspecified errors and that the try’son thebig banks family’s complied wealth, with lawyers the break- repre- senting the family saidon the family’sarticle con- wealth, lawyers repre- upsenting requirement the family — enforced said the after article the con-fi- tained unspecified errors and that the family reserved the right to take legal senting the family said the article con-action. nancialtained crisis unspecified because errors of concerns and that about the family reserved the tained right to unspecified take legal errors and that the In addition, the Chinese government thefamily stability reserved of the the financial right to system take legal — action. family reserved the right to take legal blocked access to the English-language byaction. selling their assets in other institu- In addition, the Chineseaction. government tions.In addition, the Chinese government blocked access to the English-language and Chinese-language Web sites of The In addition, the Chinese governmentTimes in China — and continues to do so blockedPing An access issued to athe statement English-language to The and Chinese-languageblocked Web sites access of The to the English-language Timesand Chinese-language saying the company Web strictly sites ofcom- The Times in China — and continues to do so — saying the action was “in accordance and Chinese-language Web sites of Thewith laws and rules.” pliesTimes with in China rules — and and regulations,continues to do but so — saying the action wasTimes “in in accordance China — and continues to do so Neither Mr. Wen, who is expected to does— saying not know the action the backgrounds was “in accordance of all with laws and rules.”— saying the action was “in accordance retire in March, nor Mr. Dai, who is now entitieswith laws behind and rules.”shareholders. The com- Neither Mr. Wen, whowith islaws expected and rules.” to pany also said “it is the legitimate right the head of the National Social Security Neither Mr. Wen, who is expected to retire in March, nor Mr.Neither Dai, who Mr. is nowWen, who is expected to of shareholders to buy and sell shares Fund, could be reached for comment. retire in March, nor Mr. Dai, who is now the head of the Nationalretire Social in March, Security nor Mr. Dai, who is now between themselves.” Western and Chinese bankers and the head of the National Social Security Fund, could be reachedthe for head comment. of the National Social Security lawyers involved in Ping An’s 2004 Fund,In Beijing, could be China’s reached foreign for comment. ministry Western and ChineseFund, bankerscould be reached and for comment. did not return calls seeking comment Hong Kong stock listing and a subse- Western and Chinese bankers and lawyers involved in Western Ping An’s and 2004 Chinese bankers and for this article. Earlier, a Foreign Min- quent 2007 listing in Shanghai said they ALY SONG/REUTERS SUKREE SUKPLANG/REUTERS lawyers involved in Ping An’s 2004 Hong Kong stock listinglawyers and involved a subse- in Ping An’s 2004 istry spokesman sharply criticized the did not know that relatives of Mr. Wen ALY SONG/REUTERS SUKREE SUKPLANG/REUTERS Hong Kong stock listing and a subse- quent 2007 listing in ShanghaiHong Kong said stock they listing and a subse- Above left, Ma Mingzhe, the chairman and chief executive of Ping An, struck the gong at the Shanghai Stock Exchange as the company list- investigation by The Times into the fi- had acquired large stakes in the compa- quent 2007 listing in Shanghai said they did not know that relativesquent 2007 ALYof SONG/REUTERSMr. listing Wen in Shanghai saidAbove they left, Ma Mingzhe, the chairman andSUKREE chief SUKPLANG/REUTERS executiveed itsof stockPing An, there struck inALY 2007. SONG/REUTERS the gongPrime at Minister the Shanghai Wen Jiabao’sStock Exchange relatives as bought the company Ping An list- stockSUKREE quietly SUKPLANG/REUTERS through a series of investment vehicles. It is nances of Mr. Wen’s relatives, saying it ny. GILLES SABRIE FOR THE NEW YORK TIMES did not know that relatives of Mr. Wen Above left, Ma Mingzhe, the chairmanhad acquired and large chief stakesdid executive not in knowthe ofcompa- thatPing relatives An, struck of Mr.theed Wengong its stock at the there Shanghai in 2007. Stock Prime Exchange Minister as Wen the companyJiabao’s notrelatives list- clear boughtwhether Ping the relativesAn stock stillquietly own through shares ina seriesthe company. of investment Top, Ping vehicles. An is It now is building a new 115-story office tower in Shenzhen. “smears China and has ulterior mo- Executives Above at Morgan left, Ma Stanley Mingzhe, and the chairman and chief executive of Ping An, struck the gong at the Shanghai Stock Exchange as the company list- had acquired large stakes in the compa- ny. had acquired large stakes in the compa- tives.” ed its stock there in 2007. Prime Minister Wen Jiabao’s relatives bought Ping Annot stock clearGoldman quietly whether Sachs,through theed which relativesits a stockseries once therestill heldof investment own sizablein 2007. shares Prime vehicles. in the Minister company. It is Wen Top, Jiabao’s Ping An relatives is now boughtbuilding Ping a new An 115-story stock quietly office through tower in a seriesShenzhen. of investment vehicles. It is ny. Executives at Morganny. Stanley and After The Times reported last month not clear whether the relatives still own shares in the company. Top, Ping An is now buildingstakes in a Pingnewnot 115-story An clear and servedwhether office astower the lead relatives in Shenzhen. still own shares in the company. Top, Ping An is now building a new 115-story office tower in Shenzhen. Executives at Morgan Stanley and Goldman Sachs, which onceExecutives held sizable at Morgan Stanley and Commission in Beijing did not respond back-office operations, as well as for- “They weren’t sure Ping An would company also sought the support of Dai on the family’s wealth, lawyers repre- underwriters for the Hong Kong public Goldman Sachs, which once held sizable stakes in Ping An andGoldman served Sachs, as lead which Commissiononce held sizable in Beijing did not respond back-office operations,to inquiries. as well as for- “They weren’teign sure shareholders. Ping An would company also soughtsurvive,” the support said one of former Dai Ping An exec- Xianglong, the nation’s central bank senting the family said the article con- offering, also said they were never told stakes in Ping An and served as lead underwriters for the stakesHong Kong in Ping public An andto servedinquiries. as lead eign shareholders. HSBC, today Ping An’s largestsurvive,” share- said one formerMr. Ma Ping helped An manageexec- theXianglong, tiny com- the utive nation’s who centralspoke on bank the condition of ano- chief, who also had oversight over the tained unspecified errors and that the Commission in Beijing did not respond back-office operations, as well as for- “They weren’tof the sureCommission holdings. Ping An At in wouldPing Beijing An’s didcompany urging, not respond the also soughtback-office the support operations, of Dai as well as for- “They weren’t sure Ping An would company also sought the support of Dai underwriters for the Hong Kong public offering, also said theyunderwriters were never for told the HongHSBC, Kong today public Ping An’s largest share- holder with about 15.5 percentutive who of spoke its onpany the when condition it was of foundedano- chief,in 1988. who Sev- also hadnymity. oversight over the insurance industry. family reserved the right to take legal to inquiries. eign shareholders. survive,” said onetwo former to investment inquiries. Ping An banks exec- hadXianglong,Mr. also Ma ap-helped the manage nation’seign shareholders. the central tiny com- bank survive,” said one former Ping An exec- Xianglong, the nation’s central bank offering, also said they were never told of the holdings. At Pingoffering, An’s urging, also said the theyholder were never with told about 15.5 percent of its stock, declined to comment.nymity. The compa- eral years later, he was lookinginsurance for big- industry.There was also mounting pressure Mr. Wen was in a unique position. He action. HSBC, today Ping An’s largest share- Mr. Ma helped manage the tiny com- utive who spokepealed on theHSBC, in condition 2000 today to Mr. of Pingano- Wen An’s andpanychief, otherlargest when who reg- share- it also was had founded oversightMr. Main 1988. helped over Sev- themanage the tiny com- utive who spoke on the condition of ano- chief, who also had oversight over the of the holdings. At Ping An’s urging, the two investment banksof the had holdings. also At ap- Pingstock, An’s urging,declined the to comment. The compa- ny announced last week thatThere it is con- was alsoname mounting shareholders pressure from the United from the government. Worried about was head of China’s powerful Central In addition, the Chinese government holder with about 15.5 percent of its pany when it was founded in 1988. Sev- nymity. ulatorsholder for the with waiver about from 15.5eral theinsurance percent yearsbreakup later, ofindustry. its he waspany looking when forit was big- founded in 1988. Sev- nymity. Mr. Wen was in a uniqueinsurance position. industry. He two investment banks had also ap- pealed in 2000 to Mr. Wentwo and investment other reg- banksny had announced also ap- last week that it is con- sidering selling its stake infrom Ping the An government.as States. Worried about systemic risks to the financial system, Financial Work Commission, which had blocked access to the English-language stock, declined to comment. The compa- eral years later, he was looking for big- There was alsorule. stock, mountingThe private declined pressure equity to comment. divisionsnameMr. The shareholdersofWen compa-the was in a eral unique from years theposition. later, United he He was looking for big- There was also mountingwas head pressure of China’s powerfulMr. Wen was Central in a unique position. He pealed in 2000 to Mr. Wen and other reg- ulators for the waiverpealed from thein 2000 breakup to Mr. Wensidering and other selling reg- its stake in Ping An as part of a broad effort to raisesystemic capital. risks to theIn 1994, financial the private system, equity divisions of regulators in Beijing stepped up their been established in 1998 to oversee the and Chinese-language Web sites of The ny announced last week that it is con- name shareholders from the United from the government.two ny investment announced Worried banks about last week soldStates.was their that head itcom- is of con- China’sname powerful shareholders Central from the United from the government.Financial Worried Work about Commission,was head which of China’s had powerful Central ulators for the waiver from the breakup rule. The private equityulators divisions for the of waiver the frompart ofthe a broadbreakup effort to raise capital. Ping An today is a hugelyregulators successful in BeijingMorgan stepped Stanley up andtheir Goldman Sachs enforcement of laws that required fi- country’s banking, securities and insur- Times in China — and continues to do so sidering selling its stake in Ping An as States. systemic risks bined to thesidering stakes financial sellingto HSBC system, its instake 2005Financial Inin for 1994,Ping about the AnWork private as Commission,States. equity divisions which had of systemic risks to the financialbeen established system, in 1998Financial to oversee Work theCommission, which had rule. The private equity divisions of the two investment banksrule. sold The their private com- equity divisionsPing An todayof the is a hugely successful conglomerate with revenueenforcement of $40 bil- of each laws paid that about required $35 fi- million to acquire nancial institutions to limit the scope of ance regulators, as well as China’s big- — saying the action was “in accordance part of a broad effort to raise capital. In 1994, the private equity divisions of regulators in Beijing$1 billionpart stepped of — a broad a 14-fold up effort their increase toMorgan raisebeen on capital. established their Stanley andin 1998 In Goldman 1994, to oversee the Sachs private the equity divisions of regulators in Beijing steppedcountry’s up banking, their securitiesbeen established and insur- in 1998 to oversee the two investment banks sold their com- bined stakes to HSBCtwo in investment2005 for about banksconglomerate sold their com- with revenue of $40 bil- lion last year and about 500,000nancial insur-institutions7.5 topercent limit theinterests scope ofin Ping An. At the their business activities. gest financial institutions. with laws and rules.” Ping An today is a hugely successful Morgan Stanley and Goldman Sachs enforcement ofinitial laws investment.Ping that An required today is fi- a hugelyeachcountry’s paid successful aboutbanking, $35 securities Morgan million toStanley and acquire insur- and Goldman Sachs enforcement of laws thatance requiredregulators, fi- as wellcountry’s as China’s banking, big- securities and insur- bined stakes to HSBC in 2005 for about $1 billion — a 14-foldbined increase stakes on to their HSBC lionin 2005 last for year about and about 500,000 insur- ance agents across China. It is China’s time, they were the largest foreign in- Banks were told to sell their stakes in When Mr. Ma met regulators, he told conglomerate with revenue of $40 bil- each paid about $35 million to acquire nancial institutionsThousands conglomerateto limit the of scopepages with ofof revenue publicly7.5ance percent ofregulators,avail- $40 interests bil- as eachinwell Ping as paid China’sAn. about At thebig- $35 milliontheir business to acquire activities.nancial institutions to limitgest financialthe scope institutions. of ance regulators, as well as China’s big- $1Neither billion Mr. — aWen, 14-fold who increase is expected on their to initial investment. only fully integrated financial institu- vestments ever made in a Chinese fi- brokerage houses or trust companies; them his company was facing insolven- lion last year and about 500,000 insur- 7.5 percent interests$1 in billion Ping An. — a At 14-fold the increaseancetheir agents business on theiracross activities. China.lion last It is year China’s and abouttime,gest 500,000 financial they insur-were institutions. the largest foreign in- Banks were told totheir sell theirbusiness stakes activities. in When Mr. Ma met gestregulators, financial he institutions. told retireinitial in investment. March, nor Mr. Dai, who is now Thousands of pages of publicly avail- able corporate documents reviewed by tion,7.5 with percent the second interests largest in Ping insurer, An. At a the and insurance companies had to choose ance agents across China. It is China’s time, they were theinitial largest investment. foreign in- onlyBanks fully were integrated told toance sell financial agentstheir stakes institu- across in China.vestments It is China’s ever made in a Chinese fi- brokerage housesnancial or trustBanks institution. companies; were told to sellthem their his stakes company in was facing insolven- cy and asked them to help shore up the the head of the National Social Security able corporate documents reviewed by The Times suggest that the When Ping Mr. An Matrust mettime, companyregulators, they and were he brokerage told the largest house. foreign in- to operateWhen in Mr.life Maor property met regulators, insurance, he told Thousands of pages of publicly avail- only fully integrated financial institu- Thousands of pages tion,ofbrokerage publicly with the avail- houses second oronly largest trust fully companies; insurer, integrated a nancial financial institution. institu- and insurance companiesMuchbrokerage of had the to company’s houses choose or early trustcy and success companies; asked them to help shore up the company’s balance sheet by approving Fund, could be reached for comment. Thevestments Times suggestever made that in the a Chinese Ping An fi- stakes held by the prime minister’sthem his rela- companyIn wasvestments late facing 2010, Pinginsolven- ever An made added in more a Chinese fire- fi- but notthem both. his company was facing insolven- able corporate documents reviewed by tion, with the second largest insurer, a able corporate documentstrustand reviewed companyinsurance byand companies brokeragetion, with had house. theto choose second largestMuch insurer, of the company’s a early success to operate in life wasor property andattributed insurance insurance, to Mr. companies Ma, acompany’s hard-charg- had to choose balance sheet by approving a Hong Kong stock offering, according Western and Chinese bankers and stakesnancial held institution. by the prime minister’s rela- tives were concealed behindcy layersand asked of thempower, nancialto helpannouncing shoreinstitution. up a the$4 billion deal that Aftercy and China’s asked new them insurance to help shore regula- up the The Times suggest that the Ping An trust company and brokerage house. The Times suggest thattoIn operate the late Ping 2010, in AnPinglife or An trustproperty added company more insurance, fire-and brokeragewas attributed house. to Mr. Ma, a hard-charg- but not both. ing executiveto operate whoin life was or propertyadmireda Hong forinsurance, Kong his stock offering, according to transcripts of Ping An meetings and lawyers involved in Ping An’s 2004 tivesMuch were of concealedthe company’s behind early layers success of obscure partnerships rathercompany’s than being balancehas sincesheetMuch givenby of approving the it company’s control of theearly Shen- success torycompany’s agency was balance established sheet inby 1998,approving it stakes held by the prime minister’s rela- In late 2010, Ping An added more fire- stakes held by the primepower,but minister’s not announcing both. rela- a $4In billion late 2010, deal Pingthat An ingadded executive more fire- who was admired for his After China’s management newbut insurance not both. and regula- political toskills transcripts — and of Ping An meetings and interviews with participants. Hong Kong stock listing and a subse- obscurewas attributed partnerships to Mr. rather Ma, a thanhard-charg- being held directly in their names. a Hong Kong stockzhenwas offering,Development attributed according toBank, Mr. oneMa, ofa hard-charg-China’s begana Hongpressing Kong Ping stock An to offering, shed its according trust tives were concealed behind layers of power, announcing a $4 billion deal that tives were concealed has behindAfter since layers China’s given of it new controlpower, insurance ofannouncing the regula-Shen- a $4 billion deal that tory agency wasfor established takingAfter risks. China’s in 1998, new it insurance regula- “Now, Ping An’s life insurance is in a quent 2007 listing in Shanghai said they ing executive who was admiredALY SONG/REUTERS for his In an interview last month,managementto transcripts DuanSUKREE and ofmidsize SUKPLANG/REUTERSPingpoliticaling An executive commercial skillsmeetings — who and and banks. was admired Ping An for is his interviews with participants.and tosecurities transcripts business, of Ping and An tomeetings split its and obscure partnerships rather than being has since given it control of the Shen- held directly in their names.obscure partnerships ratherzhentory Development agencythan being was establishedBank,has sinceone of givenin China’s 1998, it it control of the Shen- began pressing Ping“He An had to shed all the its qualities trust of a great en- loss, and property insurance and the did not know that relatives of Mr. Wen Above left, Ma Mingzhe, the chairmanmanagement and chief and politicalexecutive skills of Ping — and An, struck the gongWeihong, at the Shanghai a wealthy Stock Wen Exchange familyforinterviews taking friend, as risks. withthe companynow participants.management building list- a new and headquarters political skills here — and tory agency was established“Now, in Ping 1998, An’s itlife life interviews and insurance property with is in insuranceparticipants. a divisions held directly in their names. zhen Development Bank, one of China’s In an interview held last directly month, in Duan their names.midsizebegan pressing commercial Ping zhen banks. An to Development shed Ping its An trust is Bank, one of China’s and securities business,trepreneur,” and saysto split Yan its Feng, who helped trust company have thin margins,” Mr. had acquired large stakes in the compa- for taking risks. said that the shares in Ping An“He“Now, actually had Ping all the An’sin qualities Shenzhen, lifefor takinginsurance of a a greatrisks. spectacular is en-in a 115-story of- began pressing Ping Anloss, to shed and its property trustinto insuranceseparate“Now, Pingcompanies. and An’s the life insurance is in a In an interview last month, Duan midsize commercialed its stock banks.there in Ping 2007. An Prime is Weihong, Minister a wealthyWen Jiabao’s WenIn family anrelatives interview friend, bought lastnowand Ping month, buildingsecurities An stock Duan a newbusiness, quietly midsize headquarters throughand commercial to split a here series its banks. of investment Ping An isvehicles. It is life and propertyrun insurance and Ping securities An’s divisions Shanghai business, office and into split the its Ma wrote in the Sept. 29, 1999, letter to ny. “He had all the qualities of a great en- belonged to her and that ittrepreneur,” wasloss, an and acci- property saysfice Yan tower insuranceFeng,“He had who that all andhelped was the thequalities designed of bya great the en- trust company haveAt loss,thin a news margins,” and conference property Mr. insurance in November and the Weihong, a wealthy Wen family friend, now buildingnot clear a new whether headquarters the relatives here saidstill thatown the shares shares in intheWeihong, Ping company. An a actually wealthy Top, PingWeninlife Shenzhen,Anfamily and is now friend, property a building spectacular now insurance a buildingnew 115-story 115-story divisions a newof- office headquarters tower in here Shenzhen. into separate companies.1990s.life “He and was property a quick insurance learner, knew divisions Mr. Wen. The contents were confirmed Executives at Morgan Stanley and trepreneur,” says Yan Feng, who helped dent that Mr. Wen’s relativesruntrust appeared Ping company An’s ShanghaiNewhavetrepreneur,” thin York officemargins,” architectural says in the Mr. Yan Feng, firm who Kohn helped Ma wrote in the 1999,Sept.trust Ma 29, Yongwei,1999,company letter thenhave to the thin chairman margins,” of Mr. said that the shares in Ping An actually in Shenzhen, a spectacular 115-story of- belonged to her and thatsaid itthat was the an shares acci- in ficePinginto tower separateAn actually that companies. wasin designed Shenzhen, by a spectacular the 115-story of- At a news conferencehowinto to adapt separate in November to new companies. situations and was by two former top Ping An executives. Goldman Sachs, which once held sizable dentrun that Ping Mr. An’s Wen’s Shanghai relatives office appeared in the in shareholding records. The1990s.Ma process wrote “He in- in was the Pedersen a Sept. quickrun 29, Pinglearner, Fox. 1999, An’s letter knew Shanghai to office in the Mr. Wen. The contentsthe Ma China were wrote Insurance confirmed in the Sept. Regulatory 29, 1999, Com- letter to belonged to her and that it was an acci- fice tower that was designed by the belonged to her and thatNew itAt was York a newsan acci- architectural conferencefice tower in firm November that Kohn was designed by the 1999, Ma Yongwei,really then Atdetermined. the a chairman news conference He’d of do whatever in November it Rather than an out-and-out breakup, stakes in Ping An and served as lead Commission in Beijing did not respond in1990s. shareholding “He was records. a quick The learner, process knew in- volved borrowing their how governmentMr. toWen. adapt The to contentsnew 1990s.situations were “He confirmed and was was a quick learner, knew by two former topmission, PingMr. An Wen. saidexecutives. The the contents agency hadwere already confirmed dent that Mr. Wen’s relatives appeared New York architectural firm Kohn back-office operations,dent as that well Mr. as Wen’s for- relativesPedersen1999,“They Ma appeared weren’t Fox.Yongwei, sure thenNew Ping the York chairman An would architectural of company firm also Kohn sought the support of Dai the China Insurancetakes1999, Regulatoryto get Ma what Yongwei, he Com- wants.” then the chairman of Mr. Ma offered a middle road. After underwriters for the Hong Kong public to inquiries. volvedhow to borrowingadapt to new their situations government and was identity cards and obtainingreally bytheir two determined.signa- former top PingHe’dhow An doto executives.adaptwhatever to new it situations and was Rather than andrawn out-and-outby twoup plans former breakup, to topsplit Ping up PingAn executives. An and in shareholding records. The process in- Pedersen Fox. eign shareholders. in shareholding records.survive,”the The China process said Insurance onein- formerPedersen Regulatory Ping Fox.An exec- Com- Xianglong, the Ping nation’s An’s central Close bank Call mission, said the But agencythe the China hadcompany’s Insurance already growth Regulatory drive ran Com- seeking advice of other investors, Mr. offering, also said they were never told identityreally determined.cards and obtaining He’d do their whatever signa- it tures. takesRather to get than what an he out-and-outwants.”really determined. breakup, He’d do whatever it Mr. Ma offered other a middle insurers.Rather road. than After an out-and-out breakup, volved borrowing their government HSBC, today Ping An’s largest share- Mr. Ma helped managevolved the borrowingtiny com- theirutivemission, governmentwho spoke said theon the agency condition had of already ano- chief, who also had oversight over the drawn up plans tointo split mission,trouble up Ping in said the An thelateand agency1990s, when had Chi- already Ma proposed the formation of a holding of the holdings. At Ping An’s urging, the tures.takes to get what he wants.” Ping An’s CloseChina Call and Hong Kong haveMr.But detailed Ma the offeredcompany’s aMa takes middle growth Mingzhe, to get road. drive what the After ran Pinghe wants.” An chairman seeking advice of “The otherMr. separation Mainvestors, offered plans Mr. a middlehave been road. sub- After identity cards and obtaining their signa- holder with about 15.5 percent of its pany when it was foundedidentity in cards 1988. andSev- obtainingnymity.drawn their up signa-plans to split up Ping An and insurance industry. other insurers. na’sdrawn economy up plans weakened to split after up Ping the 1997An and company that would effectively sepa- two investment banks had also ap- Ping An’s Close Call But the company’s growth drive ran regulations on the disclosureintoseeking oftrouble corpo- advice in the and of late other chief But1990s, investors, executive, the when company’s Chi- Mr. was a growth high school drive ran Ma proposed themitted formationseeking to the of advice a State holding Council of other for investors, approv- Mr. tures. stock, declined to comment. The compa- eralChina years and later, Hong he was Kongtures. looking have detailedfor big- otherThereMa Mingzhe,insurers. was also the mountingPing An An’s chairman pressure Close CallMr. Wen was in a unique position. He “The separationAsian plans financial have been crisis. sub- rate life insurance from property but pealed in 2000 to Mr. Wen and other reg- into trouble in the late 1990s, when Chi- rate information deemed materialna’sMa economyproposed to a weakenedthegraduate formation afterwho of got thea holding his 1997 start as an aide to other insurers. company that wouldMa effectively proposed sepa-the formation of a holding China and Hong Kong have detailed ny announcedMa Mingzhe, last the week Ping that An it chairman is con- nameregulations shareholders on the disclosure fromChina the and of United corpo- Hong Kongfromand have“The chief the separation detailed executive, government. plans wasMa Worried have a Mingzhe, high been school about sub- the Pingwas An head chairman of China’sinto powerful trouble Centralin the late mitted1990s, when to the Chi- State Council for approv- al,” Ma Yongwei told the media, adding ulators for the waiver from the breakup na’s economy weakened after the 1997 publicly listed company’s operation,Asiancompany financial like that crisis. Yuan would Geng, effectively a pioneering sepa- figure in some The “Thebloated separation state sector plans ratebegan have life to been col- insurance sub- from property but keep them under one corporate umbrel- regulations on the disclosure of corpo- sideringand chief selling executive, its stake was in aPing high An school as States.rate information deemedregulations material on to the a disclosuresystemicgraduatemitted of to who risks corpo- the got Stateto his the and Council start financial chief as foran executive, system, aide approv- to wasFinancial a high Work school Commission,na’s economy which weakenedhad al,” afterMa Yongwei the 1997 told the media, adding that company they would that “deepen would reform effectively of the sepa- rule. The private equity divisions of the the identities of large shareholdersrateThe lifebloated and insurance stateof China’ssector from began property earliest to col- economicbut reforms lapse,mitted and by to 1998, the State some Council ofkeep the nation’sthem for approv- under one corporate umbrel- la, along with the securities and trust di- rate information deemed material to a partgraduate of a broad who effort got his to startraise ascapital. an aide to publiclyAsianIn 1994, financial listed the private company’s crisis.rate equity operation, information divisions like of deemedregulatorsYuan material Geng, in a to pioneering Beijing a graduate stepped figure who upin some theirgot his startbeen as established an aide to in 1998Asian to financial oversee crisis.the that they would “deepen reform of the insurancerate life system.” insurance from property but two investment banks sold their com- al,” Ma Yongweidetails told the about media, whether adding companieslapse, and con- by 1998,and some an early of the leader nation’s of Ping An. biggestal,” banksMa Yongwei were nearly told the insolvent.la, media,along with adding the securities and trust di- vision. publicly listed company’s operation, like YuanPing Geng,An today a pioneering is a hugely figure successful in some Morganthe Theidentities bloated Stanley of statelarge andpublicly sector shareholders Goldman began listed Sachs tocompany’s and col- enforcementof operation, China’s earliest like of laws Yuan economic that Geng, required reforms a pioneering fi- country’skeep figure them in banking, someunder onesecurities corporateThe bloated and umbrel- insur- state sectorinsurance began system.” to col- keep them under one corporate umbrel- bined stakes to HSBC in 2005 for about that they wouldtrolling “deepen large reform stakes of are the relatedbiggest parties. banks wereImpressed nearly insolvent. with Mr. Ma’s intellect, Pingthat An’s they hard-wonwould “deepen fortunesvision. reform were of the The company, he said, would re-es- the identities of large shareholders and conglomerateof China’s earliest with revenue economic of $40 reforms bil- eachdetailslapse, paid aboutand about by whether 1998, $35 somethe million companies identities of the to acquire nation’s of con- large shareholdersnancialand an earlyinstitutions leaderand oftoof Pinglimit China’s An.the scope earliest of economicancela, along regulators, reforms with the as securities welllapse, as andChina’s and by trust 1998, big- di- some of the nation’s la, along with the securities and trust di- $1 billion — a 14-fold increase on their insurance system.”But legal experts say enforcement is Mr. Yuan put him in charge of human also insuranceevaporating. system.” Like most bigThe Chinese company,Pushing he said, would Back re-es- the Regulators tablish itself as the Ping An Group, ac- details about whether companies con- lionand last an early year leader and about of Ping 500,000 An. insur- 7.5trollingbiggest percent large banks interests stakes were aredetailsnearlyin Ping related insolvent. aboutAn. parties. At whether the their companiesImpressed business con- withactivities. Mr.and Ma’san early intellect, leader of Pinggestvision.Ping An.financial An’s institutions. hard-wonbiggest fortunes banks were nearly insolvent. vision. initial investment. often lax, particularly inside China. resources at a state-managedPushing industrial Backinsurers, the Regulators Ping An had wontablish new clients itself as theWith Ping his An company Group, ac- about to be broken cording to Ping An documents reviewed trolling large stakes are related parties. anceImpressed agents across with China. Mr. Ma’s It is China’s intellect, time,ButPing legal they An’s experts were hard-won the say trolling largest enforcement fortunes large foreign stakes were in- is areMr. relatedBanks Yuan wereparties. put told him to in sell chargeImpressed their ofstakes human with in Mr.also When Ma’sThe evaporating. company,intellect,Mr. Ma met Like he regulators, said,mostPing big would An’s Chinese he hard-won re-es-told fortunes were The company, he said, would re-es- Thousands of pages of publicly avail- There is also, they say, a culture of park, and eventually at a new insurance with investment products cording that guaran- to Ping Anup, documents Ma Mingzhe, reviewed also known as Peter by The Times. He then began looking But legal experts say enforcement is onlyMr. fullyYuan integrated put him in financial charge of institu- human vestmentsoftenalso evaporating. lax, ever particularly made LikeBut inmost legal inside a Chinesebig experts Chinese China. fi- saybrokerageresources Pushing enforcement at houses Backa state-managed is ortheMr. trust Regulators Yuan companies; industrial put him in chargetheminsurers,tablish his of itself companyPing human asAn the hadwas alsoPing wonfacing evaporating. An new Group,insolven- clients ac-Like mostWith big his Chinese company Pushingabout to be Back broken the Regulators tablish itself as the Ping An Group, ac- able corporate documents reviewed by nominee shareholders — when one per- firm, Ping An, which took root in Shen- teed big returns over longby The periods Times. HeMa, then fired began off letters looking to leaders in Beijing, for allies to promote his proposal. often lax, particularly inside China. tion,resources with the at a second state-managed largest insurer, industrial a nancialThereinsurers, isinstitution. also,Ping theyAn had often say, won a lax, new culture particularly clients of andpark, insideWith insurance and his eventually China. company companies resourcesat about a new had to insuranceto beat choose abroken state-managedcywithcording and investment askedindustrial to Ping them An products to documentsinsurers, help thatshore Ping reviewed guaran- up Anthe had up,won Ma new Mingzhe, clients also With known his ascompany Peter about to be broken cording to Ping An documents reviewed The Times suggest that the Ping An son holds shares on behalf of someone zhen, a coastal boomtown. based on the high interestfor rates allies banks to promotedictated his proposal. memos reminding himself to In January 2000, with Mr. Ma’s back- There is also, they say, a culture of trustpark, company and eventually and brokerage at a new house. insurance nomineewithMuch investment of shareholders the company’s productsThere — when early is that also, onesuccess guaran- per- they say,tofirm,up, operate a MaPing culture Mingzhe, inAn, life which of or alsopropertypark, took known androot insurance, eventually in as Shen- Peter atcompany’steed aby new The big insurance Times. returnsbalance He sheet overwith then investmentby long began approving periods looking productsMa, fired that guaran-off letters toup, leaders Ma Mingzhe,in Beijing, also known as Peter by The Times. He then began looking stakes held by the prime minister’s rela- else — that is difficult for even the most Mr. Ma’s timing was opportune. Chi- offered for deposits during a time of in- “buy golf clubs” for high-ranking offi- ing, executives from Morgan Stanley nominee shareholders — when one per- firm,In late Ping 2010, An, Ping which An tookadded root more in Shen-fire- wassonteed holdsattributed big shares returns to Mr.on nomineebehalf overMa, a longhard-charg-of shareholders someone periods butzhen,—Ma, when not fireda both.coastal one off per- letters boomtown. tofirm, leaders Ping inAn, Beijing, which tookabased for Hong root allies on Kongin theto Shen- promote high stock interest offering,teed his proposal. big rates according returns banks overdictated long memos periods remindingMa, fired himself off letters to to leadersIn January in Beijing, 2000, withfor alliesMr. Ma’s to promote back- his proposal. tives were concealed behind layers of seasoned lawyers and accountants to na was just beginning to restructure its flation. When interest rates plummeted cials, and kept detailed charts outlining and Goldman Sachs wrote a joint letter son holds shares on behalf of someone power,zhen, aannouncing coastal boomtown. a $4 billion deal that ingelsebased executive — that on theis difficultwho high was interestson for admired holds even rates theshares for most banks his on behalfdictatedAfterMr. of Ma’s someone China’s memos timing new remindingwaszhen, insurance opportune. a coastal himself regula- boomtown.Chi- to tooffered transcriptsIn January for deposits of 2000, Ping duringbasedwith An Mr.meetings ona time Ma’s the of high back-and in- interest“buy rates golf clubs” banks fordictated high-ranking memos offi- remindinging, executives himself to from In Morgan January Stanley 2000, with Mr. Ma’s back- obscure partnerships rather than being penetrate. state-led economy. The government be- in the mid-1990s, losses piled up. the lobbying responsibilities of each top to Mr. Wen arguing that a breakup else — that is difficult for even the most has Mr. since Ma’s given timing it control was opportune. of the Shen- Chi- managementseasonedoffered for lawyers deposits and political andelse during accountants— skills that a time is— difficult ofand toin- fortoryna“buy evenwas agency golfjust the clubs”beginningmost was established for toMr. high-ranking restructure Ma’s in 1998,timing offi-its it wasinterviewsflation. ing,opportune. executives When with Chi- interest participants. fromoffered rates Morgan plummetedfor deposits Stanley duringcials, a and time kept of in- detailed“buy charts golf outlining clubs” for high-rankingand Goldman offi- Sachs ing,wrote executives a joint letter from Morgan Stanley held directly in their names. The Times found no indication such gan dismantling the iron rice bowl sys- In 1999, senior executivesto at Mr. Ping Wen An arguingexecutive that at a Ping breakup An, according to a would “violate China’s policy to encour- seasoned lawyers and accountants to zhenna was Development just beginning Bank, to one restructure of China’s its forpenetrate.flation. taking When risks. interestseasoned rates plummeted lawyers andbeganstate-led cials, accountants pressingand economy. kept toPing detailed The naAn governmentwasto charts shed just itsoutlining beginning trust be- intoand “Now,therestructure Goldmanmid-1990s, Ping An’sits Sachs losses lifeflation. wrote insurancepiled Whenaup. joint is interest letterin a ratesthe lobbying plummeted responsibilitiescials, and of kepteach detailedtop charts outlining and Goldman Sachs wrote a joint letter In an interview last month, Duan regulations or any law was broken, nor tem, which had guaranteed pensions, began to acknowledge thatwould the compa- “violate China’scopy of policy those to records encour- verified by former age and protect foreign investment,” ac- penetrate. midsizestate-led commercial economy. The banks. government Ping An be- is in“HeThe the had Timesmid-1990s, all the found qualitieslosses penetrate. no indicationpiled of a up. great such en- andganthe securities dismantlinglobbying responsibilitiesbusiness, the state-lediron and rice toeconomy.ofbowl spliteach sys- itstop Theloss, governmenttoIn Mr.1999, and Wen propertysenior be- arguing executives insurancein the that mid-1990s, at a Ping and breakup theAn lossesexecutive piled up. at Ping An,the accordinglobbying responsibilities to a of each top to Mr. Wen arguing that a breakup Weihong, a wealthy Wen family friend, any evidence that Mr. Wen held shares social insurance and living quarters to ny could soon be insolvent.age As and a joint-protect foreignPing An investment,” executives. ac- cording to a copy of the letter reviewed The Times found no indication such nowgan buildingdismantling a new the headquarters iron rice bowl here sys- trepreneur,”regulationsIn 1999, senioror says any Yan executiveslaw Feng, Thewas Timesbroken,who at Pinghelped found nor An nolifetem, executive indication and which property at such had Ping guaranteed insurance gan An, dismantling according pensions, divisions to the a irontrustbeganwould rice company to bowl“violate acknowledge sys- have China’s thin In thatpolicy margins,”1999, the tosenior compa- encour- Mr. executivescopy of at those Ping recordsAn executive verified by at former Ping An, according to a would “violate China’s policy to encour- said that the shares in Ping An actually in Ping An under his own name. Communist Party cadres. stockholding company, Pingcording An had to big a copy ofMr. the Ma letter focused reviewed much of his personal by The Times. The letter’s authenticity regulations or any law was broken, nor intem, Shenzhen, which a had spectacular guaranteed 115-story pensions, of- runanybegan evidence Ping to An’s acknowledge that Shanghai Mr.regulations Wen that office held the or shares in compa- any the lawintosocial wascopy separate broken, of insurance those companies.nor records andtem, living verified which quarters by hadformer to guaranteedManyage couldwrote and pensions, protect soonin the be Sept.foreign insolvent.began 29, investment,” 1999, to As acknowledge letter a joint- toac- Ping that An the executives. compa- copy of those records verified by former age and protect foreign investment,” ac- belonged to her and that it was an acci- After reviewing questions from The Although Ping An was founded as a institutional investors, mostlyby The Times. state Theenergy letter’s on authenticity China’s highest government was verified by former executives at the any evidence that Mr. Wen held shares ficesocial tower insurance that was and designed living quarters by the to 1990s.inny Ping could “He An undersoon was be ahis quick insolvent. ownany evidencename. learner, As a knewthat joint- Mr. CommunistWenPingAt held a An news executives.shares Party conference cadres.social in insurance November and livingMr.stockholdingcording Wen. quarters toThe a company, copy contents to ofny the Pingwere could letter Anconfirmed soon reviewedhad bebig insolvent.Mr. AsMa afocused joint- muchPing of An his executives. personal cording to a copy of the letter reviewed dent that Mr. Wen’s relatives appeared Times, the Securities and Futures Com- state entity, it was one of the first Chi- companies. But many of themwas verified refused by formeradministrative executives body, at the the State Council, two investment banks. in Ping An under his own name. NewCommunist York Party architectural cadres. firm Kohn howstockholdingAfter to adapt reviewing to company, new questions insituations Ping Ping An An from andunder had was The bighis own1999, Althoughname.Mr. Ma Ma Yongwei, focused Ping An then much Communist was the of founded chairman his personalParty as of acadres.byinstitutionalby two The former Times. investors,top The Ping stockholdingletter’s An mostlyexecutives. authenticity company, state energy Ping An on had China’s big highestMr. Ma government focused much of his personal by The Times. The letter’s authenticity in shareholding records. The process in- Pedersen Fox. mission of Hong Kong and the Hong nese insurance companies to experi- to come to the company’stwo aid investment by pur- banks.a 38-member group whose senior lead- The American investment banks After reviewing questions from The Although Ping An was founded as a reallyTimes,institutional determined. the Securities investors, He’d andAfter do Futures mostlywhatever reviewing Com- state it questionsthestateenergy China entity, from on Insurance China’sit The was one highest RegulatoryAlthough of the government first Ping Com- Chi- An wascompanies.wasRather founded verified than But as by an a manyformer out-and-outinstitutional of executives them breakup, refused investors,at the administrative mostly state body,energy the State on Council,China’s highest government was verified by former executives at the volved borrowing their government Kong Stock Exchange declined to com- ment with Western management sys- chasing additional shares, whichThe would Americaners investment were Prime banks Minister Zhu Rongji warned that “as a listed company in the Times, the Securities and Futures Com- state entity, it was one of the first Chi- takesmissioncompanies. to get of what Hong But he many Kong wants.”Times, of and them the the Securities refused Hong andmission,neseadministrative Futures insurance said Com- the body, companies agencystate the entity, Statehad to already experi- Council,it was oneMr.to twoof come theMa investment first offeredto theChi- company’s banks. a middlecompanies. aidroad. by But After pur- many a of 38-member them refused group whoseadministrative senior lead- body, the State Council, two investment banks. identity cards and obtaining their signa- Kong Stock Exchange declined to com- drawnment withup plans Western toment. split management Theup Ping China An Securities sys-and chasing Regulatory additionaltems, shares, including which the would use of actuariesers were and Primehave Minister provided Zhu needed Rongji capital.warned that “as aand listed Wen company Jiabao, thenin the vice premier. The U.S., we could be required to disclose mission of Hong Kong and the Hong Pingnese An’s insurance Close companies Call to experi- toBut come the tocompany’s the company’smission growth aid of drive Hong by ran pur- Kong a and38-member the Hong groupnese whose insurance senior lead- companiesseekingThe to advice American experi- of other to investment come investors, to the banks Mr. company’s aid by pur- a 38-member group whose senior lead- The American investment banks tures. ment. The China Securities Regulatory othertems, insurers.including the use of actuaries and have provided needed capital. and Wen Jiabao, then vice premier. The U.S., we could be required to disclose Kong Stock Exchange declined to com- ment with Western management sys- intochasing trouble additional in the late shares,Kong 1990s, Stock which when Exchange wouldChi- declineders were to Primecom- Ministerment with Zhu Western Rongji managementMawarned proposed that sys- the“as formationa listedchasing company of additional a holding in the shares, which would ers were Prime Minister Zhu Rongji warned that “as a listed company in the China and Hong Kong have detailed Ma Mingzhe, the Ping An chairman “The separation plans have been sub- ment. The China Securities Regulatory tems, including the use of actuaries and na’shave economy provided weakened neededment. capital. after The theChina 1997 Securitiesand WenRegulatory Jiabao, thentems, vice including premier. theThe usecompany ofU.S., actuaries we that could and would be requiredhave effectively provided to disclose sepa- needed capital. and Wen Jiabao, then vice premier. The U.S., we could be required to disclose regulations on the disclosure of corpo- and chief executive, was a high school mitted to the State Council for approv- Asian financial crisis. Rise of a Financialrate lifeGiant insurance The Ping from An property Insurance but Company was founded in Shenzhen in 1988. At that time, the Chinese insurance market was dominated by a single state-owned giant, People’s Insurance. rate information deemed material to a graduate who got his start as an aide to al,” Ma Yongwei told the media, adding RiseThe bloated of a state Financial sector began Giant to col- The Ping An Insurance Company was founded inkeep Shenzhen them under in 1988. one At corporate that time, umbrel- the Chinese insurance market was dominated by a single state-owned giant, People’s Insurance. publicly listed company’s operation, like Yuan Geng, a pioneering figure in some that they would “deepen reform of the la, along with the securities and trust di- theRise identities of ofa largeFinancial shareholders Giant and Theof China’s Ping An earliestInsurance economic Company was reforms foundedlapse, in Shenzhen and by in1998, 1988. someRise At thatof the oftime, nation’s a the Financial Chineseinsurance insurance Giant system.” market1994 The was Ping Morgandominated An Insurance Stanley by a andsingle Company state-owned1998 was foundedAfter giant, the inAsian People’s Shenzhen Insurance. in 19991988. At Ping that An time, executives the Chinese 2000insurance Wen market Jiabao’s was son dominated 2002 by a single Regulators state-owned approve giant, 2004People’s Ping Insurance. An raises $1.8 details about whether companies con- and an early leader of Ping An. biggest1994 banksMorgan were Stanley nearly and insolvent.1998 After the Asian Goldman1999 SachsPing An each executives pay $35vision. financial2000 crisis, Wen regulatorsJiabao’s son step campaign2002 Regulatorsto prevent approve co-founds2004 Pingan I.T. An company raises $1.8 Ping An’s proposal to avoid a billion in Hong Kong public Ping An’s hard-won fortunes were million to acquire a stake in Theup company,efforts to break he said,up would re-es-regulators from breaking up that later wins a lucrative Ping split-up. stock offering. trolling1994 large Morgan stakes Stanley are andrelated parties.1998 After theImpressed Asian with 1999 Mr. Ma’s Ping intellect, An executivesGoldman 2000 Sachs Weneach Jiabao’s pay1994 $35 son Morgan financial Stanley2002 crisis, and regulatorsRegulators 1998 step approve Aftercampaign the Asian2004 to prevent Ping An1999 raises $1.8Pingco-founds An executives an I.T. company2000 WenPing Jiabao’s An’s proposal son to avoid2002 a Regulatorsbillion in Hongapprove Kong public2004 Ping An raises $1.8 also evaporating. Like most big Chinese Pushing BackPing the An, Regulators the largest foreign tablishinsurance itself as companies the Ping and An Group,the ac- company. An contract. ButGoldman legal Sachs experts each say pay enforcement $35 financial is crisis,Mr. regulators Yuan put step him incampaign charge to of prevent human million toco-founds acquire aan stake I.T.Goldman company in Sachsup efforts eachPing to pay An’sbreak $35 proposal up financial to avoid crisis,regulators a regulatorsbillion from in step breakingHong campaignKong up public tothat prevent later wins a lucrativeco-founds Ping ansplit-up. I.T. company Ping An’s proposalstock offering. to avoid a billion in HongBritish Kong bank public HSBC pays $600 often lax, particularly inside China. insurers, Ping An had won new clients investment in a Chinese cordingother to financial Ping An institutions. documents reviewed 2007 Ping An sells stock in million to acquire a stake in up efforts toresources break up at a state-managedregulators fromindustrial breaking upPing An,that the laterlargest wins foreign milliona lucrative to acquire Pinginsurance asplit-up. stake companies inWith hisandup companyefforts tothe break about company. stockup to be offering. brokenregulators fromAn contract. breaking up that later Thewins wife a lucrative of then-vice Ping premiersplit-up. Executives from Morgan stock offering.million for a 10 percent stake There is also, they say, a culture of park, and eventually at a new insurance with investment products that guaran- financial institution. by The Times. He then began lookingBritish bank HSBC pays $600 Shanghai, raising $5 billion. Ping An, the largest foreign insurance companies and the company. investmentAn contract. in a ChinesePing An, theother largest financial foreignup, institutions. Ma Mingzhe,insurance companies also known and as Peterthe company. An contract.Wen Jiabao visits Ping An’s Stanley2007 and Ping Goldman An sells Sachs stock in in Ping An. nominee shareholders — when one per- firm, Ping An, which took root in Shen- teed big returns over long periodsBritishMa, bank fired HSBC off paysletters $600The to leaders wife of then-vice in Beijing, premierfor alliesExecutives to promote from his Morgan proposal. million for a 10 percentBritish stake bank HSBC pays $600 investment in a Chinese other financial institutions. financial institution. investment in a Chinese other financial institutions.2007 Ping An sells stock in chairman. A diamond writeShanghai, a letter raising to Wen $5 Jiabao billion.2007 Ping An sells stock in Two investment vehicles son holds shares on behalf of someone zhen, a coastal boomtown.The wife of then-vice premierbased onExecutives the high from interest Morgan rates banksmilliondictated for a 10 percent memos 1995stake remindingWen Jiabao A new himselfvisits law ordersPing to TheAn’s wifeIn of January Stanleythen-vice and2000, premier Goldman with Mr. SachsExecutives Ma’s back- infrom Ping Morgan An. million for a 10 percent stake Investment vehicles controlled financial institution. financial institution. Shanghai, raising $5 billion. company partly controlled by arguing that breaking upShanghai, Ping raising $5 billion. partly controlled by the GILLES SABRIE FOR THE NEW YORK TIMES else — that is difficult for even the most Mr. Ma’s timing wasWen opportune.Jiabao visits Chi-Ping An’soffered Stanleyfor deposits and Goldman during Sachsa time of in-in Ping“buy An. golf clubs”insurance forchairman. high-ranking companies A diamond offi- to Wen ing,Jiabao executiveswrite visits a Ping letter An’s from to Wen Morgan JiabaoStanley Stanley and Goldman Sachs in Ping An.Two investment vehicles by associates of Cheng 1995 A new law orders herInvestment relatives occupiesvehicles controlledspace An would damage foreign GILLES SABRIE FOR THE NEW YORK TIMES mother of Wen Jiabao show seasoned lawyers and accountants to na was just beginningchairman. to restructure A diamond its flation. writeWhen a letterinterest to Wen rates Jiabao plummeted cials, and kept detailedchoosecompany chartsbetweenTwo partly investment outlining life controlled andchairman. vehicles byand Goldman Aarguing diamond that Sachs breaking wrote up writea Pingjoint a letter letter to Wen Jiabao partly controlled by theTwo investmentYu-tung vehicles buy a large stake 1995 A new law orders insurance companies to1995 A new law Investmentorders vehicles controlled in bya Pingassociates An office of Chengbuilding.Investment investment. vehicles controlled her holding a stake in Ping An 2012 Ping An, today a penetrate. state-led economy. Thecompany government partly controlled be- in by the mid-1990s,arguing that losses breaking piled up up. Ping the lobbying responsibilitiespropertyher relatives insurancepartly of occupies controlledeach and top tocompanyspace bysell tothe Mr. partlyAn Wenwould controlled GILLES arguingdamage SABRIE by FOR foreign that THEarguing NEW a breakupYORK that TIMES breaking up Ping mother of Wen Jiabao partlyshow controlledfrom the by China the MerchantsGILLES SABRIE FOR THE NEW YORK TIMES insurance companies to choose between life andinsurance companiesby associatesto of Cheng Yu-tung buy a large stakeby associates of Cheng 2012 Ping An, today a worth $120 million. hugely successful The Times found no indication such gan dismantling theher iron relatives rice bowl occupies sys- spaceIn 1999,An wouldsenior damage executives foreign at Ping An executive at Pingoffin other An, a Ping accordingunits.mother An office of Wen tobuilding. a herJiabao relativeswould showinvestment. “violate occupies China’s space policyAn wouldto encour- damage foreign Anher associate holding ofa stakeHong inKong Pingmother An ofGroup. Wen Jiabao show choose between life and property insurance andchoose to sell between lifeYu-tung and buy a large stake 2012 Ping An, today a from the China MerchantsYu-tung buy a large stake hugely successful conglomerate, is building a regulations or any law was broken, nor tem, which had guaranteedin a Ping An pensions, office building.began toinvestment. acknowledge that the compa- copy of those records verifiedher holding by former a stakein a Pingagein Ping andAn Anoffice protect building. foreign investment,”investment. ac- billionaireworth $120 Cheng million. Yu-tungher holding a stake in Ping An 2012 Ping An, today a property insurance and to sell off other units. property insurancefrom and tothe sell China Merchants An associatehugely of successful Hong Kong Group. from the China Merchants A conglomerate,company that wouldis building later a 115-story headquarters in any evidence that Mr. Wen held shares social insurance and living quarters to ny could soon be insolvent. As a joint- Ping An executives. worth $120 million.cording to a copy of the letter reviewed begins acquiring large stakesworth $120 million. hugely successful off other units. An associate ofoff Hong other Kong units. Group. billionaireNATALIEconglomerate, Cheng BEHRING/REUTERS Yu-tung Anis building associate a of Hong Kong Group. be115-story partly controlled headquarters by the in Shenzhen. in Ping An under his own name. Communist Party cadres. stockholding company, Ping An had big Mr. Ma focused much of his personal by The Times. The letter’s authenticityA company that would later in Ping An using investment conglomerate, is building a billionaire Cheng Yu-tung Delegatesbegins acquiring115-story at the Ninth large headquarters billionairestakes in Cheng Yu-tung relativesShenzhen. of Wen Jiabao After reviewing questions from The Although Ping An was founded as a institutional investors, mostly stateA NATALIEcompanyenergy BEHRING/REUTERS that on would China’s later highest government was verified by former executives at thebe partly controlled by Athe company vehicles that would that laterlater co-invest in 115-story headquarters in begins acquiring large stakes two investmentNationalin Ping People’sAnShenzhen. banks.using Congressinvestmentbegins in acquiring large stakes acquires a Ping An stake.Shenzhen. Times, the Securities and Futures Com- NATALIEstate BEHRING/REUTERS entity, it was one of the first Chi- companies. But many of themDelegates refusedbe atpartly theadministrative controlledNinth by body,theNATALIE the BEHRING/REUTERS State Council, relatives of Wen Jiabaobe partly companiescontrolled by with the the relatives in Ping An using investment Beijingvehicles sought that measureslater co-investin to Ping in An using investment mission of Hong Kong and theDelegates Hong atnese the Ninth insurance companies to experi- to come to the company’s aidNational by pur-relatives People’sa 38-member of Congress WenDelegates Jiabao in group at thewhose Ninth senior lead- The American investment banksacquires a Ping An stake.relatives of Wen JiabaoJiabao. vehicles that later co-invest in addresscompanies the financial with the crisis.relativesvehicles that later co-invest in Kong Stock Exchange declined toNational com- People’sment Congress with Western in management sys- chasing additional shares, whichBeijing would soughtacquiresers measures a werePingNational An Primeto stake. People’s Minister Congress Zhu Rongjiin warned that “as a listed company in the acquires a Ping An stake. ment. The China Securities Regulatory companies with the relatives of Wen Jiabao. companies with the relatives Beijing soughttems, measures including to the use of actuaries and have provided needed capital. address the financialand Wen crisis.Beijing Jiabao, sought then measuresvice premier. to The U.S., we could be required to disclose of Wen Jiabao. of Wen Jiabao. address the financial crisis. address the financial crisis.

Rise of a Financial Giant The Ping An Insurance Company was founded in Shenzhen in 1988. At that time, the Chinese insurance market was dominated by a single state-owned giant, People’s Insurance.

1994 Morgan Stanley and 1998 After the Asian 1999 Ping An executives 2000 Wen Jiabao’s son 2002 Regulators approve 2004 Ping An raises $1.8 Goldman Sachs each pay $35 financial crisis, regulators step campaign to prevent co-founds an I.T. company Ping An’s proposal to avoid a billion in Hong Kong public million to acquire a stake in up efforts to break up regulators from breaking up that later wins a lucrative Ping split-up. stock offering. Ping An, the largest foreign insurance companies and the company. An contract. British bank HSBC pays $600 investment in a Chinese other financial institutions. 2007 Ping An sells stock in The wife of then-vice premier Executives from Morgan million for a 10 percent stake financial institution. Shanghai, raising $5 billion. Wen Jiabao visits Ping An’s Stanley and Goldman Sachs in Ping An. chairman. A diamond write a letter to Wen Jiabao Two investment vehicles 1995 A new law orders Investment vehicles controlled company partly controlled by arguing that breaking up Ping partly controlled by the GILLES SABRIE FOR THE NEW YORK TIMES insurance companies to by associates of Cheng her relatives occupies space An would damage foreign mother of Wen Jiabao show choose between life and Yu-tung buy a large stake in a Ping An office building. investment. her holding a stake in Ping An 2012 Ping An, today a property insurance and to sell from the China Merchants worth $120 million. hugely successful off other units. An associate of Hong Kong Group. conglomerate, is building a billionaire Cheng Yu-tung A company that would later 115-story headquarters in begins acquiring large stakes NATALIE BEHRING/REUTERS be partly controlled by the Shenzhen. in Ping An using investment Delegates at the Ninth relatives of Wen Jiabao vehicles that later co-invest in National People’s Congress in acquires a Ping An stake. companies with the relatives Beijing sought measures to of Wen Jiabao. address the financial crisis.

inquiries. Ping An’s Close Call HSBC, today Ping An’s largest shareholder Ma Mingzhe, the Ping An chairman and with about 15.5 percent of its stock, declined to chief executive, was a high school graduate who comment. The company announced last week got his start as an aide to Yuan Geng, a pioneer- that it is considering selling its stake in Ping An ing figure in some of China’s earliest economic as part of a broad effort to raise capital. reforms and an early leader of Ping An. Ping An today is a hugely successful con- Impressed with Mr. Ma’s intellect, Mr. Yuan glomerate with revenue of $40 billion last year put him in charge of human resources at a state- and about 500,000 insurance agents across Chi- managed industrial park, and eventually at a na. It is China’s only fully integrated financial new insurance firm, Ping An, which took root in institution, with the second largest insurer, a Shenzhen, a coastal boomtown. trust company and brokerage house. Mr. Ma’s timing was opportune. China was In late 2010, Ping An added more firepower, just beginning to restructure its state-led econ- announcing a $4 billion deal that has since given omy. The government began dismantling the it control of the Shenzhen Development Bank, iron rice bowl system, which had guaranteed one of China’s midsize commercial banks. Ping pensions, social insurance and living quarters An is now building a new headquarters here in to Communist Party cadres. Shenzhen, a spectacular 115-story office tower Although Ping An was founded as a state that was designed by the New York architectur- entity, it was one of the first Chinese insurance al firm Kohn Pedersen Fox. companies to experiment with Western man- agement systems, including the use of actuar- quired financial institutions to limit the scope of ies and back-office operations, as well as foreign their business activities. shareholders. Banks were told to sell their stakes in bro- Mr. Ma helped manage the tiny company kerage houses or trust companies; and insur- when it was founded in 1988. Several years later, ance companies had to choose to operate in life he was looking for big-name shareholders from or property insurance, but not both. the United States. After China’s new insurance regulatory In 1994, the private equity divisions of Mor- agency was established in 1998, it began press- gan Stanley and Goldman Sachs each paid ing Ping An to shed its trust and securities busi- about $35 million to acquire 7.5 percent interests ness, and to split its life and property insurance in Ping An. At the time, they were the largest divisions into separate companies. foreign investments ever made in a Chinese fi- At a news conference in November 1999, Ma nancial institution. Yongwei, then the chairman of the China Insur- Much of the company’s early success was ance Regulatory Commission, said the agency attributed to Mr. Ma, a hard-charging executive had already drawn up plans to split up Ping An who was admired for his management and po- and other insurers. litical skills — and for taking risks. “The separation plans have been submitted “He had all the qualities of a great entrepre- to the State Council for approval,” Ma Yongwei neur,” says Yan Feng, who helped run Ping An’s told the media, adding that they would “deepen Shanghai office in the 1990s. “He was a quick reform of the insurance system.” learner, knew how to adapt to new situations and was really determined. He’d do whatever it Pushing Back the Regulators takes to get what he wants.” With his company about to be broken up, But the company’s growth drive ran into Ma Mingzhe, also known as Peter Ma, fired off trouble in the late 1990s, when China’s economy letters to leaders in Beijing, dictated memos weakened after the 1997 Asian financial crisis. reminding himself to “buy golf clubs” for high- The bloated state sector began to collapse, ranking officials, and kept detailed charts outlin- and by 1998, some of the nation’s biggest banks ing the lobbying responsibilities of each top ex- were nearly insolvent. ecutive at Ping An, according to a copy of those Ping An’s hard-won fortunes were also records verified by former Ping An executives. evaporating. Like most big Chinese insurers, Mr. Ma focused much of his personal ener- Ping An had won new clients with investment gy on China’s highest government administra- products that guaranteed big returns over long tive body, the State Council, a 38-member group periods based on the high interest rates banks whose senior leaders were Prime Minister Zhu offered for deposits during a time of inflation. Rongji and Wen Jiabao, then vice premier. The When interest rates plummeted in the mid- company also sought the support of Dai Xian- 1990s, losses piled up. glong, the nation’s central bank chief, who also In 1999, senior executives at Ping An began had oversight over the insurance industry. to acknowledge that the company could soon Mr. Wen was in a unique position. He was be insolvent. As a joint-stockholding company, head of China’s powerful Central Financial Ping An had big institutional investors, mostly Work Commission, which had been established state companies. But many of them refused to in 1998 to oversee the country’s banking, securi- come to the company’s aid by purchasing addi- ties and insurance regulators, as well as China’s tional shares, which would have provided need- biggest financial institutions. ed capital. When Mr. Ma met regulators, he told them “They weren’t sure Ping An would survive,” his company was facing insolvency and asked said one former Ping An executive who spoke them to help shore up the company’s balance on the condition of anonymity. sheet by approving a Hong Kong stock offering, There was also mounting pressure from according to transcripts of Ping An meetings the government. Worried about systemic risks and interviews with participants. to the financial system, regulators in Beijing “Now, Ping An’s life insurance is in a loss, stepped up their enforcement of laws that re- and property insurance and the trust company C M Y K C MCYMKY K Nxxx,2012-11-25,A,019,Bs-BK,E2Nxxx,2012-11-25,A,019,Bs-BK,E2Nxxx,2012-11-25,A,019,Bs-BK,E2

C M Y K Nxxx,2012-11-25,A,019,Bs-BK,E2

C M Y K Nxxx,2012-11-25,A,019,Bs-BK,E2THE NEW YORKTHE TIMES NEWTHE INTERNATIONAL YORKNEW YORK TIMES TIMES INTERNATIONALSUNDAY, INTERNATIONAL NOVEMBERSUNDAY, 25,SUNDAY, 2012NOVEMBER NOVEMBER 25, 2012 25, 2012 Ø N Ø N Ø19N 19 19

THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19 A Company’sA Company’s HiddenA Company’s Shareholders: Hidden Hidden Shareholders: Shareholders:Friends and Friends Family Friends and of Wen andFamily FamilyJiabao of Wen of Wen Jiabao Jiabao

THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19 In October 2004, theIn OctoberinvestmentIn October 2004, company the2004, investment Taihongthe investment wascompany one company Aof Taihong theCompany’s largest Taihong was one was ofHidden onethe largestof the Shareholders: largest Friends and Family of WenKEY JiabaoInvestment companiesKEY InvestmentKEY Investment companiesRelatives companies of Wen JiabaoRelatives Relatives of Wen ofJiabao Wen Jiabao shareholders of insurance giant Ping An, holding 135 million shares. TaihongIn October 2004, 135In OctobermillionIn October 2004, 1352004, million 135 million shown in CAPITAL LETTERS; and his wife, or her shareholders of insuranceshareholders giant Ping An, of holding insurance 135 giant million Ping Inshares. OctoberAn, holding Taihong 2004, 135the investment million shares. company Taihong Taihong was one of the largest shown in CAPITAL LETTERS; shownKEY inInvestment CAPITALand his companieswife,LETTERS or her ; andRelatives his wife, of Wen or Jiabaoher was itself owned bywas a series itselfwas ofowned itself other ownedby investment a series by a ofseries companies, other of investment other shareholderswhich investment werecompanies, of in insurance companies, which giant were whichPing An, in were sharesholding in 135of Ping million An shares. Insuranceshares Taihong sharesof Ping ofAn Ping Insurance An InInsurance October 2004, 135 individualsmillion in boldfaceindividualsindividuals in boldfaceshownfriends in boldfacein CAPITAL and colleagues LETTERS;friends andfriendsand colleagues his andwife, colleaguesor her A Company’s Hiddenturn ownedShareholders: by others.turn Many ownedturn of owned bytheseFriends others. ownersby others. Many wereand of Many these connected Family of owners thesewas with owners wereitself of China’s owned connectedWen were by connecteda seriesJiabao with of China’sother with investment China’s were owned companies, by Taihong, whichwere were ownedanwere in ownedby Taihong, by Taihong, anshares ofan Ping An Insurance individuals in boldface friends and colleagues prime minister, Wenprime Jiabao. minister,prime Records minister, Wen show Jiabao. Wen that Jiabao. RecordsWen family Records show members,turn that show owned Wen that andby family others.Wen members,family Many of members, these and owners and were connected with China’s were owned by Taihong, an In October 2004, the investment company Taihong was one of the largest investment vehicleinvestment ownedKEYinvestment by: Investmentvehicle vehicle owned companies ownedby: by: Relatives of Wen Jiabao friends and colleaguesfriends of friendstheand prime colleagues and minister's colleagues of the wife primeof effectivelythe minister'sprimeprime controlledminister's wife minister, effectively wifeat Wen effectively Jiabao. controlled Records controlled atshow that at Wen family members, and investment vehicle owned by: shareholders of insurance giant Ping An, holding 135 million shares. Taihong friendsIn October and colleagues 2004, 135 of the million prime minister's wife effectively controlled at shown in CAPITAL LETTERS; and his wife, or her least 88 percent ofleast the shares88least percent owned88 percent of bythe Taihong. sharesof the sharesowned ownedby Taihong. by Taihong. was itself owned by a series of other investment companies, which were in leastshares 88 percent of Ping of Anthe Insuranceshares owned by Taihong. individuals in boldface friends and colleagues turn owned by others. Many of these owners were connected with China’s were owned by Taihong, an prime minister, Wen Jiabao. Records show that Wen family members, and investment vehicle owned by: friends and colleagues of the prime minister's wife effectively controlled at least 88 percent of the shares owned by Taihong. Share of ownership 28% 25% 25% 12% 10% Share of ownership Share28% ofShare ownership of ownership28% 28% 25% 25% 25% 25% 25% 25% 12% 12% 12%10% 10% 10% Owner XUANDA TIANJIN SHIJI HONGRUI Owner XUANDA Owner OwnerXUANDAXUANDA TIANJINFeng SHIJIZhixi TIANJINTIANJIN SHIJI SHIJI HEPINGHONGRUI HONGRUIHONGRUI Feng Zhixi Feng ZhixiFeng Zhixi HEPINGWife of Wen HEPINGHEPING OwnedWife by of Wen Wife ofWife Wen of Wen Jiabao’s brother Owned by Owned by 33.7 million Share of ownership 28% 25% 25% Jiabao’s brother 12% 10% Owned by OwnedOwned by by Jiabao’s brother Jiabao’s brother Owned by OwnedOwned by by Owned by OwnedOwned by by 33.7 million Owner XUANDA 33.7 millionTIANJIN SHIJI 33.7 million HONGRUI Feng Zhixi HEPING Chen Hengmei 48% 32% 20% 90% 10% 50% 27% 23% Wife of Wen Number of Mother-in-law of Ping An shares Wen Jiabao’s Owned by Jiabao’s brotherSHENGCHURUI Liu Owned by Owned by BEIJING Li HESHENG ChenKANG- HengmeiDONGFANG-Chen HengmeiChen Hengmei Donsheng effectively TAIHONG Baozhen SHENGYUAN SHIYUAN son, Winston Wen 48% 48% 32%48% 20%32%33.732% million 20% 20% 90%controlled 90% 90%10% 50%10% 10%27% 50%23% 50%27% 27%23% 23% Number of NumberNumber of of Mother-in-law of Mother-in-law13.4Mother-in-law million of of Ping An shares Wen Jiabao’s SHENGCHURUI SHENGCHURUISHENGCHURUILiu Liu Liu OwnedPing by An shares Ping An shares BEIJING BEIJINGBEIJINGLi HESHENGOwnedLi by KANG-Li HESHENGHESHENGDONGFANG-KANG-OwnedWenKANG-DONGFANG- Jiabao’sby DONGFANG- Wen Jiabao’s effectively Donsheng DonshengDonsheng effectively effectively TAIHONG TAIHONGTAIHONGBaozhen BaozhenBaozhenSHENGYUAN SHIYUANSHENGYUANSHENGYUANson, SHIYUANWinstonSHIYUAN Wen son, Winstonson, Winston Wen Wen C M Y K Nxxx,2012-11-25,A,019,Bs-BK,E2 controlled controlled controlled Chen Hengmei 13.4 million 13.4 million13.4 million 48% 32% 20% 90% 10% 50% 27% 23% C M Y K OwnedNxxx,2012-11-25,A,019,Bs-BK,E2 by OwnedOwned by Number by of C M Y K Nxxx,2012-11-25,A,019,Bs-BK,E2Owned by OwnedOwned by by OwnedMother-in-law by of OwnedOwned by by Ping An shares 80% 20% Wang Zhuangli 70% Wen Jiabao’s30% 17% 43% 40% SHENGCHURUI Liu BEIJING Colleague of Li HESHENG KANG- DONGFANG- THE NEW YORKeffectively TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19 Donsheng DALIAN SHIJIXING TAIHONG Wen Jiabao’s wife Baozhen SHENGYUAN SHIYUAN son, Winston Wen Wang He controlled HAICHANG Lan Wen Partly 7.5 million 13.4 million THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19 A Company’sOwned by Hidden Shareholders: Friends and Family of Wen Jiabao owned by Owned by THE NEW YORKOwned TIMES by INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19 80% 20%80% 80% 20%Wang20% Zhuangli Wang ZhuangliWang Zhuangli 70% 70% 30%70% 30%17% 30%43% 40% 17% 43%17% 43%40% 40% A InCompany’s October 2004, the Hiddeninvestment company Shareholders: Taihong was one Friendsof the largest and FamilyColleague of of WenColleague JiabaoColleague of of KEY Investment companies Relatives of Wen Jiabao shareholders of insurance giant Ping An,DALIAN holding 135 millionSHIJIXING shares.DALIAN TaihongDALIAN SHIJIXINGWenSHIJIXING Jiabao’sIn October wife 2004,WenA 135Company’s Jiabao’s Wenmillion Jiabao’s wife wifeHidden Shareholders:shown in CAPITAL Friends LETTERS; and andFamily his wife, orof her Wen JiabaoWang He Wang WangHe He was itself owned by a series of other investment companies, which were in shares of Ping An Insurance individuals in boldface friends and colleagues In October 2004, the investment companyHAICHANG Taihong was one ofHAICHANG the largestHAICHANG KEY Investment companies Relatives of Wen Jiabao Lan Wen Lan WenLan Wen turn owned by others. Many of these owners were connected withPartly China’s 7.5Partly million Partlywere owned 7.5byIn Taihong, October million7.5 an 2004,million the investment company Taihong was one of the largest KEY Investment companies Relatives of Wen Jiabao shareholders of insurance giant Ping An, holding 135 million shares. Taihong In October 2004, 135 million shown in CAPITAL LETTERS; and his wife, or her Duan Weihong Zhang Yuhong Zhang Jianhong prime minister, Wen Jiabao. Records show that Wen family members,owned and by ownedowned by by shareholders of insurance giant Ping An, holding 135 million shares. Taihong In October 2004, 135 million shown in CAPITAL LETTERS; and his wife, or her was itself80% owned by a series20% of other investment companies,Wang Zhuangli which were in sharesinvestment of Ping vehicle AnZhang Insurance owned by: 70% Two relativesindividuals30% obtained in boldface stakes in Ping17% An throughfriends43% and40% colleagues Friend of Wen Family friend and colleague Brother of Wen friends and colleagues of the prime minister's wife effectively controlled at was itself owned by a series of other investment companies, which were in shares of Ping An Insurance individuals in boldface friends and colleagues turn owned by others. Many of these owners wereColleague connected ofwith China’s least 88 percent of the shares owned by Taihong. were owned by Taihong,Jiankunturn owned an by others. Many of these ownersHongrui, were beginning connected in 2005. with China’s By 2007, Yang Zhiyun, left,were ownedJiabao’s by Taihong, wife an of Wen Jiabao’s brother Jiabao’s wife DALIAN Wang He prime minister, Wen SHIJIXINGJiabao. Records show that WenWen family Jiabao’s members, wife and investment vehicleBrotherprime owned minister,of by: Wen Jiabao. Records showthe primethat Wen minister’s family members,mother, held and $120 million worth ofinvestment 21.2 vehicle million owned by: 9.1 million 3.3 million friendsHAICHANG and colleagues of the prime minister's wife effectively controlled at Lan Wen Partly 7.5 million Wenfriends Jiabao’s and colleagueswife of the prime minister'sPing An wife stock; effectively and Yang controlled Quanmei at, the father-in-law of least 88 percent of the shares owned by Taihong. least 88 percent of the shares owned by Taihong. owned by 1 million (27% of Shijixing) the prime minister’s son, held $113 million. THE NEW YORK TIMES Duan Weihong DuanZhang WeihongDuan Yuhong Weihong Zhang ZhangYuhong YuhongZhang Jianhong Zhang ZhangJianhong Jianhong Share of ownership 28% Zhang Zhang Zhang 25%Two relativesour obtained lossesTwo relating stakesrelativesTwo to theinrelatives obtainedPing investment An obtained through stakes25% in stakesin Ping inAn Ping through AnFriend through of Wen 12% FriendFamily Friendof Wen friend of Wen10% and colleagueFamily Familyfriend andfriend colleague andBrother colleague of Wen BrotherBrother of Wen of Wen Ping An, which would not be helpful for Owner XUANDA Jiankun JiankunJiankun Hongrui, beginningthe imageHongrui, in of 2005. China’sHongrui, beginning By policy 2007, beginning of in YangTIANJIN reform 2005. Zhiyun inSHIJI By2005. 2007,, left, By Yang2007, Zhiyun Jiabao’sYang Zhiyun, left, wifeHONGRUI , left, Jiabao’sof WenJiabao’s wife Jiabao’s wife brotherof Wenof Jiabao’s Wen Jiabao’s brotherJiabao’s brother wife Jiabao’sJiabao’s wife wife Share of ownership 28% Brother of BrotherBrother of of25% the Fengprime Zhixi minister’sand openingthe mother, to primeShare thethe outside.” of held minister’s primeownership $120 minister’s mother,million25%28%HEPING mother, worthheldAnother $120 of held million $12021.2 millionworth millionBig ofworth 12% Stakeof 21.225%9.1 million21.2 millionin million Ping10% 9.1 An, million9.1 Hiddenmillion 3.325% millionin a Hong3.3 million 3.3Kong million12% Investment10% Wife of WenThe letter came after months of ag- Owner XUANDA OwnerTIANJINXUANDA SHIJI HONGRUI TIANJIN SHIJI HONGRUI Wen Jiabao’s wife Wen Jiabao’sWen Jiabao’s wife wifePingJiabao’s An stock; brothergressive and lobbyingPingYang An QuanmeiPing onstock; the An Duanpart andstock;, the of YangPingWeihong father-in-law and An Quanmei Yang Quanmei of, the Zhang father-in-lawBy, the DAVIDYuhong father-in-law BARBOZA of of prime minister’sZhang son, Jianhong Wen Yunsong. Ping An stock at the time of the Hong Owned by Feng Zhixi HEPING Owned by Owned by Feng Zhixi HEPING 1 million (27% of 1Shijixing) million1 million (27% of(27% Shijixing)the of primeShijixing) minister’sexecutivesthe son,and prime the heldthe two minister’s prime$113 American minister’smillion. son, banks held son, $113 held million. $113 million. In mid-2001, moreover, one of Mr. THEKong NEW I.P.O. YORK TIMES— just overTHE 20NEW percent YORKTHE NEW TIMES of YORK TIMES Zhang Two relatives obtained stakes in PingWife33.7 ofAn Wenmillion through Friend of Wen TheFamily main friendconnection and to colleague Ping An for WifeBrother of Wen of Wen to persuade other high-ranking officials relatives of Wen Jiabao was through Zheng’s investment vehicles bor- Ping An’s shares. Jiankun Hongrui, beginning in 2005. By 2007,Jiabao’s Yang brother Zhiyun, left, Jiabao’s wife of Wen Jiabao’s brother Jiabao’sJiabao’s brother wife Owned by in Beijing, including the central bankOwnedOwned bybytheir stakes in a company basedOwned in the by rowed about $9 million from a dia- Owned by “These Owned several by parties were under mond 33.7 company million partly controlled by common control,” said one executive Brother of the prime minister’s mother, held33.7 $120 million millionand worth the insurance of regulator,21.2 million to hold prime9.1 minister’s million hometown, Tianjin, 3.3 million our losses relatingour to thelossesour investment lossesrelating relating toin the investmentto the investment in in relatives of the prime minister, and who worked with Mr. Cheng and rela- Wen Jiabao’s wife Ping An stock; and Yang Quanmei, the father-in-lawPing An together, of according to corpo- in northern China. But there was also Chen Hengmei Ping An, which wouldPing not An,Ping be which helpfulAn, whichwould for wouldnot be nothelpful be helpful for rate for documents reviewed by The Times. his wife’s former government col- tives of Mr. Wen, but who asked not to 48% 32% 20% 90% apparently10% a Hong Kong50% connection.27% 23% Mother-in-law of 1 million (27% of Shijixing)the image of China’sthethe prime image policythe minister’s image of of China’s reform of son, China’s policy heldNumber $113 policy of of reform million. of reformAs early as 1999, executives at Ping leagues in the diamond trade, accord- THE NEW YORK TIMES be named for fear of retribution. “It Ping An shares One big investor in Ping An was ing to regulatoryWen Jiabao’s filings. Soon after, was under the surface, like theChen Higgs Hengmei SHENGCHURUI and openingLiu to theand outside.” openingand opening to the outside.” to the outside.” Another An also Anotherbegan Big makingAnother BEIJINGcontactStake with Big the inBig StakeZheng PingLi StakeJianyuan, HESHENG in whoAn, former Pingin PingHiddenKANG- Ping An An,DONGFANG- An, Hidden Chenin HengmeiHidden a Hong in ainKong Hong a Hong Investment Kong Kong Investment Investment 48% 32% 20% effectively 48%90% 32%10% 20%50% 27% 23% that vehicle son, — BaohuaWinston Wen — bought90% 10% 50%boson theory,27% economic23% dark matter:Mother-in-law of TheDonsheng letter came afterThe letter monthsThe came letter of ag- after cameNumber months after of months of ag- ofrelatives ag- of Mr. Wen. TAIHONG executivesBaozhen said worked as SHENGYUANa businessNumberSHIYUAN of Mother-in-law of controlled about 20 million Ping An shares be- It has a gravitational pull, butWen you Jiabao’s our losses relating to the investment in gressive lobbying on thePing part An sharesof Ping AnBy DAVIDHu Kun, BARBOZA a formerSHENGCHURUIBy Ping DAVID AnBy employeeDAVID BARBOZAprime BARBOZA minister’sLiuassociate andson,prime an Wen investment minister’sprime Yunsong. minister’s manager son, WenPing son, An Yunsong. Wenshares Yunsong.Wen 13.4 Jiabao’s million BEIJING Ping An stockLi at thePing timeHESHENG AnPing ofstock the An Hongat stockKANG- the timeat theDONGFANG- of time the Hongof the Hong SHENGCHURUI gressiveLiu lobbying on the gressivepart of Ping lobbying An on the part of Pingwho An served as Mr. Ma’sBEIJING staff assistant Li HESHENG KANG- effectivelyDONGFANG-fore its initial public offering. can’t see it.” Ping An, which would Ownednot be byhelpful for effectively Owned by InDonsheng mid-2001,for Cheng moreover, Yu-tung,In mid-2001, the In one HongOwned mid-2001, of Kong moreover,by Mr. bil- moreover, one of oneson, Mr. Winston of Mr. Wen TAIHONG Kong I.P.O.Baozhen — justKong over I.P.O.Kong20 percent —I.P.O.SHENGYUAN just of —over just SHIYUAN20 over percent 20 percent son,of Winston of Wen executivesDonsheng and theexecutives two Americanexecutives and thebanks and two the American two AmericanThe banks main banksfrom connection 1997 toThe 2000, to main PingrecalledTheTAIHONG connection mainAn a for1999 connection meet- to Ping to BaozhenAn Ping for An for SHENGYUAN controlledSHIYUANPing An executives declined to A New York Times review of Ping the image of China’s policy of reform controlled lionaire who controls both the New 13.4 million to persuade other tohigh-ranking persuadeto persuade other officials high-rankingother high-ranking officials officialsing betweenrelatives Mr. Ma of and Wen Zhang Jiabao Beili,Zheng’s was through investmentZheng’s vehiclesZheng’s investment bor- investment vehiclescomment. vehicles Cheng13.4 bor- million Yu-tung, bor- who is now Ping An’s shares. Ping An’sPing shares.An’s An’s public shares. filings indicates that the relatives of Wen Jiabao relatives was throughOwned of Wen by Jiabao wasWorld through Development Group and Chow Owned by Ownedcompany by never publicly disclosed and opening to the outside.”Owned by in Beijing, includingAnotherin Beijing, thein central Beijing, including bank including Big the central theStake central bank the bank wifein of Mr. Ping Wen. Owned An, by rowed Hidden about $9 millionrowed in rowed aboutOwned from a a aboutby $9Hong dia- million $9 million 87, from could Kong a fromnot dia- be reached a dia- Investment for comment. “These several parties“These were“These several under several parties parties were under were under their stakes in a companytheir stakestheir based stakesin ina companythe in a company based Taiinbased the Fook, in onethe of the world’s largest Efforts to reach Mr. Zheng were also that Mr. Cheng or Mr. Zheng con- The letter came after monthsand of the ag- insuranceand regulator, theand insurance the to insurance hold regulator, regulator, to hold to holdMr. Hu said he was not told whatmond companyjewelry store partlymond chains. controlledmond company company partly by partly controlled controlled by by common control,” commonsaid onecommon control,” executive control,” said one said executive one executive By DAVID BARBOZA prime minister’sprimetranspired minister’sprime hometown, at the prime minister’s meeting, son, Tianjin, minister’s Wen but hometown, Yunsong. he re- hometown, Tianjin, Tianjin, unsuccessful.Ping An stock at the time of the Hong trolled the stakes — or that the vari- gressive lobbying on the part of Ping An Ping An together, according to corpo- relatives ofBetween the prime relatives2000 and minister,relatives 2004, of five the compa- and of prime the prime minister, minister, and and who worked with Mr.who Cheng workedwho andworked with rela- Mr. with Cheng Mr. Chengand rela- and rela- 80% 20%Ping An together,Wang according ZhuangliPing Anto corpo- together, accordingin northern to corpo-called China. hisin But boss’snorthern therein 70% reaction. northern was China. also “Because China.But there of But30% wasthere also was also17% 43% 40% People familiar with the sale of Ping ous companies they were linked to executives and the two American banks In mid-2001, moreover, one of Mr. nies affiliatedhis with wife’s Mr. Cheng former and his government col-Kong I.P.O. — just over 20 percent of BOBBY YIP/REUTERStives of Mr. Wen, but who asked not to rate documents reviewedColleaguerateThe documents mainrate ofby Theconnectiondocuments Times. reviewed toreviewed Ping by The An by Times. for The Times.that meeting, Chairman Ma got very hisex- wife’s former governmenthis wife’s col- formerAn governmentshares to associates col- of Mr. Cheng tives of Mr. Wen, but whotives askedwere of not Mr.closely toWen, related. but whoAnd aasked search not of to apparently Zheng’sa Hongapparently Kong investment apparentlyconnection. a Hong vehicles a Kong Hong connection. Kong bor- connection.New World Group acquired 20 per- Ping An’s shares. to persuade otherDALIAN high-rankingSHIJIXING officials relativesAs early of Wen as 1999, Jiabao executives was through at Ping cited,” said Mr. Hu, who is now livingleagues in in the diamondWangleagues ZhuangliWang trade,leagues inHe the accord- diamondin the diamond trade,say that accord-trade, in 1999 accord- a Chow Tai Fook joint Cheng beYu-tung, named a Hong for fear Kongbe of named bil- retribution.be namedHong for fear Kong “It for of recordsfear retribution. of and retribution. a visit“It to “It As early as Wang 1999,Wen Zhuangli executivesJiabao’sAs wife early at Ping as 1999, executivesOne big at investor Ping One in Ping bigOne80% investor An big was investor 20% in Ping in An Pingcent was of An Ping was An’s stock from the China 70% 30% 17% 43% 40% in Beijing, including80%HAICHANG the central20% bank rowedthe United about States70% $9 and million who has from quar-ing a30% dia- to regulatoryColleague ing17% filings. Lan to 43%of ing regulatory Wen Soon 40% to regulatory after, filings. venture filings. Soon was after, Soon restructured“These after, several in the Chi- partieslionaire. werewas under At under one time, the hissurface, was compa- under likewas theLuhe underthe Higgs County,surface, the surface,in likeGuangdong the like Higgs Provincethe Higgs AnPartly also began Colleaguemakingtheir7.5An million alsostakes ofcontactAn began also in awith begancompanymaking the making contact based contact inwith the the with the Zheng Jianyuan, who former PingMerchants An Group and other state en- and the insurance regulator, to hold Zheng Jianyuan,mondreled with who company Ping formerZheng AnDALIAN partly over Ping Jianyuan, 52,000 An controlledSHIJIXING shares thatwho byformer vehicle Ping —Wen that BaohuaAnJiabao’s vehiclethat wife — vehicle bought — Baohua — Baohuanese — city bought of — commonWuhan bought and control,” several other said onenies executiveownedboson 20 theory, percent economicof Pingboson WangAn. bosontheory,dark He— matter: thetheory, economic county economic listed dark as matter: Mr.dark Zheng’s matter: DALIAN SHIJIXINGrelativesowned by of Mr. Wen.primerelatives minister’srelatives of Mr. Wen.of hometown, Mr. Wen. Tianjin, tities ahead Wangof PingHe An’s listing on the hometown on his identity card — sug- Wen Jiabao’s wife executives relativessaidhe claimed workedexecutives he of was theasexecutivesHAICHANG owed. a prime businesssaid worked minister,said worked as anda business as a business7.5 million investment who vehicles worked were with set up Mr. in Cheng and rela- Lan Wen Ping An together,HAICHANG according to Hu corpo- Kun, a formerin northernHu Ping Kun, AnHu China. a employeeKun, former Buta former Ping there An Pingwas employee alsoAn employee aboutPartly 20Hong million Kong Pingabout Lan Stock AnWen about Exchange.20 shares million 20 At million be- Ping one An Pingmainland shares An Chinashares be- in be- order to avoid a It has a gravitationalIt has pull, It a has gravitationalgests but a that you gravitational Mr. Zheng pull, wasbut pull, in you butfact a you Partly 7.5 million associate andhisCorporate an wife’s investmentassociate records formerassociate and manager reviewed governmentan and investment byan Theinvestmentowned col- manager by manager tives of Mr. Wen, but who asked not to rate documents reviewed by Thewho Times. served as Mr.apparentlywho Ma’s servedwho staff a servedHong asassistant Mr. Kong asMa’s Mr. connection. staff Ma’s assistant staff assistant fore its initialtime, public all fivefore offering. companies itsfore initial its were publicinitial man- offering.publicChinese offering. restriction on foreign owner- capped can’tat 25 percent. see it.” Those rulescan’t also seecan’t it.”Hong see Kong it.” resident. owned by for Cheng Yu-tung,leaguesTimes indicatefor thein Chengthe Hong thatfor diamond ChengYu-tung,Mr. Kong Ma bil-Yu-tung,heldtrade, the an Hong accord-af- the Kong Hong bil- Kong bil- be named for fear of retribution.applied to investors “It from Hong Kong, As early as 1999, executives at Ping ternoon meeting and then dinner withPing aged An or executives controlledPing by declinedMr. AnPing Zheng. executives An to executives ship. declined declined to to A New York TimesA NewreviewA York New After of Ping Times York searching Times review the review local of Ping govern- of Ping from 1997 to 2000, fromrecalledOne 1997 bigfrom a to investor1999 1997 2000, meet- to recalled 2000, in Ping recalled a An1999 was ameet- 1999 meet- who are still considered foreign be- An also began making contact with the lionaire whoingthe controls prime to lionaire regulatory minister’s bothlionaire who the wife filings. controls Newwho and LiSoon controls Chu- both after, the both NewCorporate the Newcomment. and other public Cheng records Yu-tung, whoAt that is point,nowwas Goldmanunder the Sachs surface, and like the Higgs An’s publicment filings database, indicates police in that Luhe the County ing between Mr.Zheng ing Ma between and Jianyuan,ing Zhang between Mr. who Beili, Ma Mr.former and Ma Zhang Ping and An Zhang Beili, Beili, comment. Cheng Yu-tung,comment. who is now Cheng Yu-tung, who is now cause HongAn’s Kong public is filings governed indicates sep-An’s that public the filings indicates that the World Developmentthatnyan, whovehicleWorld Group ran PingWorldDevelopment — and An’s Baohua Development Chow office —inGroup Bei- bought Groupand showChow and that Chow the investment vehicles Morgan Stanleyboson owned theory, about economic 15 per- dark matter: said no such person existed in the relatives of Mr. Wen. executivesthe wife of said Mr. Wen.worked as a business Duan Weihong Zhang87, could Yuhong not be reached87, could 87,for not couldcomment. beZhang notreached be Jianhong reached for comment. for comment. arately.company nevercompany publiclycompany disclosed never never publicly publicly disclosed disclosed the wife of Mr. Wen. the wife of Mr. Wen. Tai Fook, oneaboutjing, ofon June 20Tai the million 17, Fook, world’s 1999.Tai oneFook,Ping largest of An one the shares of world’s the be- world’s largestcontrolled largest by Mr. Zheng formed nu- cent of PingIt An’s has shares, a gravitational and by 2002, pull, but you county, and that the ID number was Hu Kun, a formerZhang Ping An employee Two Mr.relatives Hu obtained said he stakes was in Ping not An told through what Friend of Wen FamilyEfforts friend tomerous andreach colleague businessMr.Efforts Zheng partnershipsEfforts to werereach Brotherto also Mr. reach with ofZheng WenMr.the Zhengwere British also were bank HSBCalso held 10 per- Usingthat a Chinese Mr. government-issued Cheng orthat Mr. Mr.that Zheng Chengnot Mr. in their con- Cheng or records. Mr. or Zheng And Mr. Zheng Zheng con- Chen- con- Mr. Hu said heassociate was not andMr. told an Hu investment what said he was managerjewelry not told store fore what Itchains. isits notjewelry initial known jewelrypublic store what offering.theychains. store discussed, chains. can’t see it.” Duan Weihong Zhang Yuhong Zhang Jianhong who served asJiankun Mr. Ma’s staff assistant Hongrui, beginning in 2005. By 2007, Yang Zhiyun, left, unsuccessful.the relativesunsuccessful. of Mr.unsuccessful. Wen, around the cent. Under rules issued in 1998 by identitytrolled card in the his name,stakes Mr. trolled— Zheng or that trolledthegyu, thestakes thewho vari- stakescompiles— or that— family or the that histories vari- the vari-in transpired at thefor transpired meeting, Chengtranspired Yu-tung, but at the he the at re-meeting, theHong meeting, Kong but hebil- but re- hebut re-the relationshipDuanJiabao’s ZhangWeihong seemedwife to flourish.Zhangof Wen Yuhong Jiabao’s brotherTwo relatives obtainedZhang Jiabao’sstakes Jianhong in wife Ping An through Friend of Wen Family friend and colleague Brother of Wen from 1997 to 2000, recalled a 1999 meet- Between 2000Ping and AnBetween 2004, executives fiveBetween 2000 compa- and 2000 declined 2004, and Peoplefive 2004, to compa-time fivefamiliar of compa- the withPingPeople Anthe investments, salePeople familiar of Ping familiar with and the withChina’s sale the of insurance salePing Aof NewPing regulators, York Times total reviewwas able ous of toPing companies control companies theyous that were companiesous Luhe linked companies County, they to said: were they “I’ve linked were never linked toheard to ZhangBrother of called his boss’sTwolionaire the reaction.calledrelatives prime called his minister’s whoobtained “Because boss’s controls his stakesmother, boss’s reaction. of in bothheld Ping reaction. $120 An“Because the through million New “Because worth of Around of of theFriend same21.2Jiankun of time,million Wen a diamondFamily com-9.1 millionfriend and colleagueHongrui, beginning Brotherin 2005.3.3 million of By Wen 2007, Yang Zhiyun, left, Jiabao’s wife of Wen Jiabao’s brother Jiabao’s wife ing between Mr. Ma and Zhang Beili, nies affiliatedcomment.pany with partlynies Mr. Cheng controlledaffiliated Chengnies Yu-tung, affiliated and by with the his relativesMr.who with Cheng is Mr. now Chengandfinanced his and two hisAn start-upsshares to run associates by the offoreign Mr. Cheng investmentAn’s public in Ping filingsBOBBY An YIP/REUTERS was indicatesheld more thatBOBBY than the YIP/REUTERS BOBBY one billionYIP/REUTERS shareswere ofcloselyof this related. name.” And a search of JiankunWen Jiabao’s wife that meeting, ChairmanHongrui,WorldPingthat An beginningmeeting, Developmentstock; Mathat got andmeeting, in veryChairman 2005.Yang ex- Quanmei Group ByChairman 2007, Ma and, gottheYang MaChow father-in-lawvery Zhiyun got ex- very, left, of ex- Jiabao’sBrother wife of of WenAn Jiabao’s shares brother to associatesthe prime minister’s Anof Mr. sharesJiabao’s mother, Cheng to wifeheld associates $120 million of worthMr. Chengof 21.2 million 9.1were million closely related. Andwere a search closely3.3 millionof related. And a search of the wife of Mr. Wen. New World87,of Group Ms.could ZhangNew not acquired Worldbe beganNew reached occupyingWorld 20 Group per- for Group acquiredcomment. office acquired 20 per- 20 per-say that in 1999 a Chow Tai Fook jointcompanyCheng never Yu-tung, publicly a Hong disclosed Kong bil- Hong Kong records and a visit to Brother1 million of (27% of Shijixing)cited,” said Mr.the Hu,Taithe primecited,” whoprime Fook, minister’s cited,”is saidminister’s now one Mr. mother,saidliving of son,Hu, the Mr. heldwhoinheld world’s Hu, $113$120 is whonow million. million largest isliving now worth inliving of in 21.2 millionWen Jiabao’s wife9.1 millionsay that in 1999Ping a Chow An stock; Taisay and Fook that Yang3.3 millioninjoint Quanmei 1999 aCheng, Chowthe father-in-law Tai Yu-tung, Fook ofTHE joint NEWa HongYORK TIMESCheng Kong Yu-tung, bil- Hong a Hong Kong Kong records bil- andHong a visit Kong to records and a visit to Mr. Hu said he was not told what cent of PingEffortsspace An’s at stockcent theto reachPing offromcent Ping An Mr. theoffice of An’s PingChinaZheng tower stock An’s inwere Bei-from venturestock also the from China was the restructured Chinaventureventure was in the restructured was Chi- restructured in the in Chi-that the Mr. Chi-lionaire. Cheng At or one Mr. time, ZhengLuhe his con- County, compa- in GuangdongLuhe County,Luhe Province County, in Guangdong in Guangdong Province Province Wen Jiabao’s wife the United StatesPingjewelrythe An and stock; United whothestore and United haschains. StatesYang quar-Quanmei States and who, the and father-in-law has who quar- has of jing, quar- according to1 million records (27% the diamondof Shijixing) the prime minister’s son, held $113lionaire. million. At one time, lionaire. his compa- At one time, his compa- THE NEW YORK TIMES transpired at the meeting, but he re- Merchants unsuccessful.Group Merchantsand otherMerchants stateGroup en- Groupand othernese and citystateother of en- stateWuhan en-nese and city neseseveral of cityWuhan other of Wuhan and several and several othertrolled other the stakes — or that the— vari- the county listed— the as — Mr.county the Zheng’s county listed listedas Mr. as Zheng’s Mr. Zheng’s our losses1 million relating (27% to theof Shijixing) investmentreled with in Pingthe An primereledBetween over minister’s withreled 52,000 2000 Ping withson, sharesand Anheld Ping 2004, over$113 An five million. 52,000 over compa- 52,000 shares sharescompany filed with regulators. Later, a etly accumulating large blocks of Ping niesIn anowned interview, 20THE NEW Ms.percentnies YORK Duan TIMES owned niesof said Ping owned she 20 An. percenttory 20 documents. percent of Ping Allof An. ofPing them An. were listed, shares by Communist Party members called his boss’s reaction. “Because of tities aheadstart-up ofPeople Ping tities co-founded An’s familiar ahead titieslisting bywith aheadof onWen Ping the the Yunsong,of saleAn’s Ping investmentof listing PingAn’s listingon the vehicles on theinvestment wereinvestment set vehicles up in vehicles were set were up setous in up companies in they were linkedhometown to on his identityhometownhometown card on — his sug- identityon his identity card — card sug- — sug- Ping An, which would not behe helpful claimed for he wasnieshe owed. claimedaffiliatedhe claimed he with was he Mr.owed. was Cheng owed. and his An stock. BOBBY YIP/REUTERShad paid about 40 cents a share at cur- along with Ms. Duan, as the owners of and their families. Anthe sonsharesour ofHong Ms.losses to Zhang Kongassociates relating and Stock theto the primeof Exchange. investmentMr. min- Cheng in At one were closely related. And a search of that meeting,the image Chairman of China’s Ma policy got very of reform ex- Corporate records reviewedHong by KongThe Stock Exchange.Hong AtKong one Stockmainland Exchange. China At oneinmainland ordermainland to China avoid China in a order rent in order to exchange avoid to rates, aavoid or a a total of $65 Taihong.gests that Mr. Zhenggests was thatgests in Mr. thatFor fact Zheng instance, Mr. a Zheng was the inrules was fact barred in a fact party a Corporate recordsNew reviewed WorldCorporate Group by The acquired records reviewed 20 per- byister, The wonPing aAn, lucrative which would technology not be con-helpful for Cheng Yu-tung, a Hong Kong bil- capped at 25 percent. Those rules also cited,”our andsaid losses opening Mr. relating Hu, to thewho to outside.”the is investmentnow living in in Another Big Staketime, all in fivesay Ping companiesthattime, in 1999 An, alltime, werea five Chow all Hidden companiesman- five Tai Fook companiesChinese joint were in restriction man- were a man-HongChinese on foreignChinese restriction Kong owner- restriction on foreignInvestmentmillion,capped on foreignto owner-at acquire 25Hong percent. owner- the shares. Kong Those capped records rules at andalso 25 And percent. a visitHong by 2007, Those toKong the rulesresident. prime also Hong minister’s KongHong resident.officials Kong resident.in charge of a state-owned com- Times indicate thatcentTimes Mr. of Ping TimesMaindicate heldAn’s indicate thatanstock af- Mr. fromthat Ma theMr. held ChinaMa an held af- antract af- fromthe image Ping ofAn, China’s according policy to of in- reformBuying Into Ping An Ping TheAn, which letter would came afternot be months helpful offor ag- aged or controlledventure agedby was Mr. or aged restructuredZheng. controlled or controlled by in Mr. the byZheng. Chi- Mr. Zheng.lionaire. At one time, his compa-appliedThe price to seemsinvestorsLuhe to County, haveapplied from been appliedin Hongto a Guangdong hugeinvestors Kong,to investorsmother, from Province who Hong from is now Kong,Hong 91, Kong, was listed on pany from using their parents, children the United States and who hasternoon quar- meeting andternoon thenternoon meeting dinner meeting with and then and dinner then dinner with terviews withand with opening former to the Ping outside.” An execu- ship. Anothership. ship. Big Stake in Ping An, HiddenAfter in searching a Hong theAfter local searchingAfter Kong govern- searching the Investment local the govern- local govern- thegressive image oflobbying China’s on policy the part of of reform Ping An MerchantsBy DAVID Group BARBOZA and other state en-prime minister’snese city son, of Wen Wuhan Yunsong. and several otherOn Dec. 26, 2002, Ping An filings Pingshow, An stockandwho unusualat are the stilltime — discount, of theconsidered the who county Hong analysts arewho foreignlistedstill say, are considered as still be- public Mr. considered Zheng’s documents foreign foreignas be- holding be- $120 mil- — or even their children’s spouse’s rela- reled with Ping An over 52,000 shares the prime minister’s wife and Corporate Li Chu- tives. and otherTheCorporate letter publicCorporate came recordsand after other and months publicother At of ag- that publicrecords point,nies records owned GoldmanAt that20 At Sachspercent point, that and point,Goldman of Ping Goldman An. Sachs Sachs and and ment database, policement in database, mentLuhe database,County police inpolice Luhe in County Luhe County andexecutives opening to and the the outside.” two American the primebanks minister’sAnothertities wifeaheadthe and primeof Ping LiBig Chu- minister’s An’s Stake listing wife on the andinIn mid-2001, Li Ping Chu- moreover, An, one Hidden of Mr. ina company a Hong run byBy Duan DAVID Kong Weihong, BARBOZAKong a I.P.O.Investmentsince — HSBCjustprime over had minister’s 20 two percent months son, of earlierWen Yunsong. ac- lion worth of Ping An stock through a tivesPing — to An trade stock stocks at the of timea listed of the state- Hong he claimed he was owed. The main connection to Ping An forshow that investment theMr. Ma,gressive investmentshow who vehicleslobbyingisshow that 56 and vehicles the thaton still were the investment runs thepart set Ping of investment Ping up An in vehicles vehiclesMorgan Stanley ownedcause about Hong 15 per-hometown Kongcause is on governed cause Honghis identity HongKong sep- card isKong governed said— issug- no governed such sep- person sep-said existed nosaid such no in person such the person existed existed in the in the The letter came after monthsnyan, of ag- who ran Pingnyan, An’s whonyan, office ran who in Ping Bei- ran An’s Ping office An’s inofficeZheng’s Bei- in investmentBei- vehicles bor- MorganWen Stanley family friend owned from aboutMorgan the prime 15 StanleyPing per-min- An’s quired ownedshares. its about In 10 mid-2001, percent 15 per- stake moreover, for about one of Mr.pair of investment companies linked to ownedKong company. I.P.O. — just over 20 percent of to persuade other high-ranking officials relativesHongBy Kong DAVID of Wen StockBARBOZA Jiabao Exchange. was through Atprime one minister’smainlandAn, declined son,executives Wen Chinato comment Yunsong. and in the order for two this American toarticle. avoid banks a The main connectionPing to PingAn stock Anarately. for at the timegests of the Hong thatarately. Mr.arately. Zheng was in fact a Corporategressive lobbying records on reviewedthe part of Ping by An The jing, on June 17, 1999. controlledrowed about by Mr. $9controlled Zheng millioncontrolled fromformed by a Mr. dia- nu- by Zheng Mr.cent Zheng formed ofister’s Ping formed nu- hometown,An’s nu-shares,cent acquiredofcent Pingand of by An’s Ping Ping 2002, “Theseshares, An An’s$1.60 severalshares, and a share, byZheng’s parties and 2002, according by were investment 2002, underto public vehicles filings. bor-Taihong.county, and that thecounty, IDcounty, number and thatThe and Ping was theTimes thatAn’s ID foundshares. the number ID no number indication was was that in Beijing, including the centraljing, on bank June 17, 1999.theirtime, stakes alljing, in five a on company companies June 17, based 1999. werein the man-In mid-2001,Interviews moreover,to persuade with one four other of senior Mr.high-ranking executives officials cappedrelatives at 25 of percent. Wen JiabaoKong Those was I.P.O. through rules — just also over 20 percent of Timesexecutives indicate and that the Mr.two AmericanMa held banks an af- The main connection to Ping An for merousmond business companyChinese merous partly partnershipsrestriction merous controlled business on withbusinessforeign by partnerships theowner- partnerships Britishstock with through bank with the HSBC a company British the held British called bank 10 common per- Tai- HSBC bank control,” HSBCCosco heldUsing rowed 10 didsaid helda Chineseper-Hong not one about 10return executive per-Kong $9government-issued Using millioncalls resident. seekingaUsing fromChinese aa dia-Chinese government-issuedMs. Duan,not government-issued in who their says records. she gotnot toAnd inknow their notZheng in records.Mr. their Chen- Wen“These records. shared And several Zhenginside And partiesinformation ZhengChen- were Chen- with under and the insurance regulator, It to is holdnot knownprime whatIt minister’sis they notIt knownisdiscussed, hometown,not known what Tianjin,they what discussed, theyZheng’s discussed, investmentwho workedin Beijing, with vehicles Mr. including Ma bor- and the Mr. central Hu at bank appliedtheir stakes to investors in a company Pingfrom basedAn’s Hong shares. in theKong, to persuade other high-ranking officials relativesaged or of Wencontrolled Jiabao by was Mr. through Zheng. relativesship. of the prime minister, and hong. Soon after, the relatives ofwho Mr. workedcomment. with mondMr. Cheng companyAfter andidentity searchingrela- partly cardcontrolled the in his localthe by name,prime govern- minister’s Mr. Zheng family in 2000, said familycommon members. control,” said one executive ternoonPing meeting An together, and then according dinnerbut to the corpo- with relationshipin butnorthern seemed thebut relationship China. theto flourish. Butrelationship there seemed was alsoseemed tothe rowedflourish. relatives to aboutflourish.the of $9 corporate Mr.and millionthe Wen,the relatives from headquartersthe insurance around relatives a dia- of regulator, Mr. the in of Wen, Shen- Mr.cent. to around Wen, hold Under around the rulesprime thecent. issuedminister’s Undercent. in hometown, 1998 Under rules“These by issued rules Tianjin, severalidentity issued in parties 1998 card in bywere 1998 in his under by name,identity Mr. Zheng card in hisgyu, name, who compiles Mr. Zhenggyu, family whogyu, histories compiles who compiles in family familyhistories histories in in in Beijing, including the central bank their stakesCorporate in a company and other based public in the recordshis wife’s At former that point,government Goldman col- Sachs andWen andwho colleagues are still of his considered wife tooktives con- foreignof Mr. ForWen, be-Taihong, butrelatives whoment it askedwas of database, thea blockbusternot prime to minister,police pur- in and thatLuhe she County bought the Ping An shares for Butwho there worked are with many Mr. Cheng unanswered and rela- the primerate documents minister’s reviewed wife and by The Li Times. Chu- apparently a Hong Kong connection. timemond of the company zhenPing duringpartlyPingAntime investments, An controlled theof time together, the same Pingof period bythe according and An Ping corrob-investments, China’sAn to corpo- investments, insurance andin northern andChina’s regulators, China.China’s insurance Butcommon there total insurance was regulators, control,” wasalso regulators, ablesaid totalone to executivecontrol totalwas companies ablewas to able control that to control companiesLuhe companiesCounty, that said: thatLuhe “I’ve County,Luhe never County, said:heard “I’ve said: never “I’ve heardnever heard and the insurance regulator, Around to hold the sameprime Aroundtime, minister’s aAround diamondthe hometown,same the com- time,same Tianjin, a time, diamond a diamondleagues com- in com- the diamond trade, accord- trol ofcause that investment Hong Kong vehicle, is be governed the namedchase. for sep- fear Byhis 2007, of wife’s retribution. when former the price“It government of Ping col-her own personal account. The Wen rel- tives of Mr. Wen, but who asked not to nyan, whoAs earlyran Ping as 1999, An’s executives office in at Bei- Ping showOne big that investor the investment in Ping An was vehicles Morganorate rate Mr.financed Stanley documents Hu’s recollections twoowned reviewed start-ups about andby The the 15 runTimes. per- by theapparentlyforeign a Hong investment Kong connection. in Ping An wassaid noheld such more person than existed one billion in the shares of of this name.”questions about the relatives’ holdings, Ping An together, according topany corpo- partly controlledpany bypartlypany the partly controlled relatives controlled by thefinanced by relatives ing the to relatives twoof regulatory the start-ups prime filings. minister, financed run Soon byand after, twothe start-upsforeignrecords investment run show. by the in Pingforeign Anwho investmentwas was worked underAn’sheld with the in surface,Mr. stock more leagues Ping Cheng peaked,than like Anin and the onewas rela- thediamondHiggs billion 159held trade, million shares more accord- atives thanof only oneof this appear billion name.” in sharesthe Taihong of share-of this name.”be named for fear of retribution. “It An also began making contact with the in northerncontrolled China. by But Mr. there Zheng was also formed nu- centcontent of ofPingAs the early An’s documents as shares, 1999, executivesreviewed and by by at 2002, Ping arately. county, and that the ID number was analysts consulted by The Times said, jing,rate on Junedocuments 17, 1999. reviewed by The Times. Zheng Jianyuan, who former Ping An his wife’s former government col- AccordingOne to documents big investor Ping tives in An Ping filed of Mr. An Wen,shares was but wereing who to valuedasked regulatory not at to $3.7 filings. billion Soon — after,holding records, she said, because her was under the surface, like the Higgs relatives of Mr. Wen. of Ms. Zhangapparently beganof Ms. occupying aof Hong Zhang Ms. Kong Zhang began officeconnection. began occupying occupying that office vehicle The office Times —An Baohuaalso concerning began — making Ping bought An’s contact lobby- with the Using a Chinese government-issuedboson theory, economic dark matter: like who might have known about the It isAs not early known as 1999, what executives they discussed, at Ping executivesmerous businesssaid worked partnerships as a business leagues with in thethe diamond British trade, bank accord- HSBC held 10 per-ahead of itsZheng Hong Jianyuan, Kong listing, who be Taihongformer named Ping forthough An fear by ofthat 2007 retribution. not vehicle Taihong in their — had “It Baohua records.already —sig- And boughtcompany Zheng Chen- borrowed the government-is- boson theory, economic dark matter: Hu Kun, a former Ping Anspace employee at the PingOne Anspace big office investoratspace thetower Ping at in thein Ping AnBei- Ping office An An was tower office inabouttower Bei- 20ining millionBei- effortsrelatives Ping and Anof meetings Mr. shares Wen. with be- the rela- It has a gravitational pull, but you relatives’ purchases and whether any- An also began making contact with the associatethe relatives and an ofinvestment Mr. Wen, manager arounding the to regulatorycent. Under filings. rules Soon after, issued in 1998 byacquiredidentity 77.7executives million card sharessaid in worked his of wasPing name, as under Ana business Mr. thenificantly Zheng surface,about reduced likegyu, 20 the million its whoHiggs stake, compiles Ping according An shares family be-sued histories identity in cards of other people — It has a gravitational pull, but you but thewho relationship served as Mr.seemed Ma’s staffto flourish. assistant Zhengjing, Jianyuan, according who former to records Ping An the diamondfore its initialtives ofpublic Mr.Hu Wen. offering.Kun, a former Ping An employee can’t see it.” one had a legal obligation to disclose relatives of Mr. Wen. jing, according tofor records Cheng jing,Yu-tung, the according diamond the Hong toKong records bil- that the vehicle diamond — Baohua — bought from thewas Chinaassociate able Ocean toand Shippingcontrol an investmentboson Compa- companies theory, managerto publiceconomic thatfore filings. itsdark initial matter: public offering. mistakenly, she said, from relatives of can’t see it.” Aroundfrom the 1997 same to 2000,time, recalled a diamond a 1999 com- meet- executivestime of said the worked Ping An as ainvestments, business andPing China’s AnIn addition, executiveswho insuranceserved Li Chunyan, declinedas Mr. regulators, Ma’s who to staffran theassistant total A New York TimesLuhe review County, of Ping said: “I’ve never heard that information. company filed withlionairecompany regulators. whocompany filed controls Later, with filed both regulators.a with the Newregulators. aboutLater, 20 Later,a million a Ping An shares be- ny, a globalfor Chengshipping Yu-tung, giant the knownIt Hong has as aKong gravitational bil-While TaihongPing pull, Anwas but the executives you shareholder declined of the to prime minister — to help mask her A New York Times review of Ping Huing Kun, between a former Mr. MaPing and An Zhangemployee Beili, associatefinanced and an two investment start-ups manager runetly by accumulating thecomment.foreignBeijing Chengetly largefrom office, accumulatingYu-tung, investment etly1997 blocks confirmed to accumulating who2000, of is Ping inrecalledin now large a Ping telephone a blocks large 1999 AnIn meet- wasan blocks of interview, Ping held of Ping more Ms.In an than Duan In interview, one an said interview, billion An’s she Ms. public shares Duan tory Ms. filings documents.ofsaid Duan indicates sheof said this All that shename.”tory of the themdocuments.tory were documents. listed, All of them Allshares of were them bylisted, were Communist listed,shares Partyshares by CommunistExecutives members by Communist at Party Morgan Partymembers Stanley members and pany partly controlled by the start-up relatives co-foundedWorldstart-up byDevelopment start-up Wen co-founded Yunsong, co-foundedGroup byand WenChow by Yunsong,fore Wen its Yunsong,initial public offering. Cosco, andlionaire 2.2 million who more controls sharescan’t both from see the it.” Newrecord, thecomment. beneficiaries Cheng of Yu-tung, the Ping who An is nowown Ping An stake from the public. An’s public filings indicates that the whothe served wife of as Mr. Mr. Wen. Ma’s staff assistant for Cheng Yu-tung, the Hong Kong bil-An stock.87, couldinterview notAn being stock.reached that betweenAn during stock. for Mr.comment. that Ma period and he Zhanghad had paid Beili, about 40had cents paid hada share about paid at 40about companycur- cents 40 a centsalong share never awith atshare publicly cur- Ms. at Duan, disclosedcur-along as withalong the Ms.owners with Duan, Ms. of Duan,as the asowners the owners of and of their families.Goldman Sachs say they were unaware of Ms. Zhang began occupying office Tai Fook, one of the world’s largest Ping An executives declined to Cosco’s DalianWorld subsidiary.Development A Group two-for-A New and YorkChowdeal Times were87, cloaked reviewcould not ofbehind be Ping reached more for than comment. a “In theand end,” their Ms. families. Duan said, “I re-and theircompany families. never publicly disclosed from Mr.1997 Huto 2000, said recalled he was a not 1999the told meet- son what of Ms. lionaireZhangthe and whosonthe the of controls Ms.son prime Zhangof both Ms. min- theZhangand New the and prime theEfforts min-prime tobrought min-reachthe Ms.Mr. wife ZhangZheng of Mr. towere Wen. meet also the Ping An that Mr. Cheng or Mr. Zheng con- of the share purchases and were not in- space at the Ping An office tower in Bei- jewelry store chains. comment. Cheng Yu-tung, who is now rent exchangeone stock Tai rates, splitrent Fook, doubled or exchange rent one a thetotal of exchange the number An’s of rates, world’s $65 public of rates,or largest dozenTaihong. afilings total or investment indicatesEfforts a of total $65 to ofvehicles thatreach $65Taihong. the Mr. controlled ZhengTaihong. were by alsoceived 100 percentFor instance, of the returns.” the For rules instance, barredFor instance,that partythe Mr. rules Cheng the barred rules or Mr. barred party Zheng party con- ingtranspired between Mr. at the Ma meeting, and Zhang ister, but Beili, he won re- a lucrativeWorldister, Development technology wonister, a won lucrativeGroup con- a and lucrative Chow technology technologyunsuccessful. con- chairman, con- Mr. Mr. Hu Ma. said he was not told what trolled the stakes — or that the vari- volved in the transactions. Between 2000 and 2004, five compa- 87, could not be reached for comment. million, sharesto acquire Taihongjewelry million,the owned. shares. storemillion, to chains.So acquire in June tocompany acquire 2004,the shares. neverthetheAnd relativesshares. publicly unsuccessful. by of 2007, Mr. disclosed Wen, theAnd including prime byAnd two 2007,minister’s by the 2007, prime theofficials prime minister’s in charge minister’s officialsof a state-ownedofficials in chargetrolled in com-charge of the a state-owned stakes of a state-owned— or that com- the vari-com- jing,the accordingcalled wife of his Mr. boss’s to Wen. records reaction. the “Because diamond of Tai Fook,tract one from of the Ping world’s An, largest accordingBuying to IntoPeople in- Ping familiarTheBuying transpired documents An withBuying theInto atsale and the Ping Intoof interviews meeting,Ping AnPing shed but An he re- ous companies they were linked to The companies also said that a typical tract from Ping An, accordingtract from to Ping in- An, accordingEfforts to reach to in- Mr. Zheng were also just before Between PingBOBBY An’s YIP/REUTERS 2000 Hong and Kong2004,that five Mr. of- compa- Chengbrothers-in-law, or Mr.People Zheng a familiar sister-in-law, con- with the as sale well of Ping ous companies they were linked to companyMr. filed Hu said with he regulators. was not told Later, what a nies affiliated with Mr. Cheng and his An sharesno to light associatescalled on his whether of boss’s Mr. thoseCheng reaction. meetings “BecauseThe price of seems toThe have priceThe been seems price a hugewere seemsto haveclosely mother,to been haverelated. a been whohuge And isaa hugesearch nowmother, 91,of mother, was who listed is who nowThe on is Fallout 91, now pany was 91, listedfrom was using onlisted their pany on parents, frompanyI.P.O. using from children process theirusing is parents, unlikelytheir parents, to children uncover children the that meeting, Chairman Ma gotterviews very ex- withetlyjewelry former accumulatingterviews store Pingterviews chains. with An large execu-former with blocks former Ping of An Pingunsuccessful. execu- An execu-In an interview, Ms. Duan said shefering, tory Taihongnies documents. affiliated held with 159.8 All Mr. trolledof million Chengthem the andwere stakesas his severallisted, —An or shares that longtimeshares the to vari-associates colleagues by Communist of Mr. and Cheng Party members BOBBY YIP/REUTERS were closely related. And a search of transpired at the meeting, but he re- New World Group acquired 20 per-On Dec.say 26, that 2002, playedin 1999 PingOnthat a a role ChowDec. meeting,An inOn filings the26,Tai Dec. decision2002,ChairmanFook show, 26, joint Ping 2002, by Ma govern- An gotChengandPing filings very An unusual Yu-tung,ex- filingsshow, discount,show,a Hongand Kong unusual and analysts bil- unusual discount, Hong say, discount, Kong public analysts records analystsdocuments say, and a say, visitpublic as holdingto public documents $120 documents mil- as holding — as or holding $120even mil-their $120 children’s mil-— or even— spouse’s orultimate their even children’s theirrela- identity children’s of spouse’s shareholders spouse’s rela- who rela- start-upcited,” co-founded said Mr. Hu, by who Wen is now Yunsong, living in Betweentives. 2000 and 2004, five compa- People familiar with the sale of Ping shares, or Newabout World3.2 percent Group of Ping acquiredous An’s companies 20 business per- theysay partners were that in linked 1999 of his a to Chow wife, Tai Zhang Fook jointIn 2001,Cheng China Yu-tung, issued new a Hong regulations Kong bil- Hong Kong records and a visit to called his boss’s reaction. “Becausetives. of An centstock. of Pingtives. An’s stock from the Chinaa companyventure runhad ment was paid bya restructured regulatorscompanycited,” Duan abouta said company Weihong,40 Mr. to run in centsabandon Hu, the by who Chi- runa a Duan share is plans bynowlionaire. DuanWeihong,at toliving cur- in At Weihong, onealong a time,since with a his HSBC Ms. compa- Duan, had twoLuheas themonths County, owners inearlier Guangdong of ac-and Province theirlion families. worth of Ping An stock through a are hiding behind layers of investment the sonthe of Ms. United Zhang States and and the who prime has min- quar- nies affiliated with Mr. Cheng and his An shares to associates of Mr. Cheng since HSBCstock, hadaccordingcent twoBOBBY of to monthsPing YIP/REUTERS publicsince An’s filings. earlier stockHSBCwere from ac-had closely the two ChinaBeili,lion related. months according worthventure And earlier ofa to wassearch Ping corporate restructuredac- Anof and stocklion regula- in worth through the Chi- that of a Pingput restrictions tives An stock — to on trade through trading stocks tivesin a listed —oftives toa listed trade —Luhe to state- stockstrade County, stocksof in a Guangdong listed of a state-listed Province state- that meeting, Chairman Ma got veryMr. ex- Ma, who isMerchants 56Mr. and Ma, stillGroupMr. who runs Ma, and is Ping whoother56 and isstate 56 still anden- runs stillnese Ping runs cityrentsplit Pingof exchangeWuhan upthe Ping United and An. rates,several But States in orotherApril and a who2002, total hasthe of quar- $65 Taihong. — the county listed as Mr.For Zheng’s instance, the rules barredlionaire. party At one time, his compa-vehicles using unrecognizable names. reled with Ping An over 52,000 shares New World Group acquired 20 per-Wen family friendWen from family Wenthe prime familyfriend min- friendfromCheng the niesquiredfrom prime ownedYu-tung, the its primemin- 20 10 a percent percentHong Merchantsmin-quired Kongof stakePing quiredGroup its bil- An. 10 for and its percent about other 10 percentstate stakepair en- forstakeofnese investment about city for of about Wuhanpair companies ofandpair investment several of linked investment other companiesto ownedcompanies linked company. linkedto owned to ownedcompany. company.— the county listed as Mr. Zheng’s ister,cited,” won said a lucrativeMr. Hu, who technology is now living con- in titiesAn, ahead declined of Ping to An’scomment listing onfor the thissay article.investment that in nation’s1999 vehicles areled Chow top with regulatorsTai were Fook Ping set joint An deliveredup over in 52,000 their shares Honghometown Kong recordson his identity and a card visit — tosug- nies owned 20 percent of Ping An. According to regulations in Hong he claimed he was owed. An, declined tocent comment of Ping An’sAn, for declinedstockthis article. from to the comment Chinaister’s for hometown, thismillion, article.ister’s acquiredto acquire ister’s hometown, Pingthe hometown, shares. An acquired $1.60 acquired Pinga share, An Ping accordingAndtities $1.60 An ahead by a to $1.602007,share, ofpublic Ping athe share,according An’s filings. prime listing according toon minister’s publicthe toinvestment filings.publicofficials filings. vehiclesTaihong. in charge were set of upa state-owned in com- hometown on his identity card — sug- tractthe from United Ping States An, and according who has quar- to in- BuyingHong Kong Into Stock Ping Exchange. An At one venturemainland wasverdict. China restructuredhe Withclaimedin order approv in he tothe was avoidal Chi- owed. of a thelionaire. State At one time, his compa- Luhegests County, thatTaihong. in Mr. Guangdong Zheng was Province in fact a Taihong. The Times found The no indication TimesTheKong Times foundand thatChina, foundno publicly indication no indicationlisted thatcompa- that Corporate records reviewedInterviews by The withMerchants fourInterviews senior GroupInterviews executivesand with other four with state senior four en- senior executives executivesThestock price throughseems to a have company been a called huge Tai-mother,Hong Kong who Stock is now Exchange. 91, was At listed one mainland on pany China from in orderusing to their avoid parents, a children gests that Mr. Zheng was in fact a reled with Ping An over 52,000 shares time, all five companies were stock man- nese throughChinese city of Councilrestriction aWuhan company andCorporate and stockon insurance several foreign called through records other owner-regulators, Tai- reviewed anies company cappedPing ownedCosco by Theat 2025 did called percent. percent not Tai- Those returnofCosco Ping rules An.callsCosco did also notseeking — did Hong the return not county Kong return calls resident.Ms. listed seekingDuan, calls as Mr. seekingwho Zheng’s saysMs. she Duan,Ms. got Duan,whoto know says who she saysMr. got Wenshe to gotknowshared to know insideMr. Wen informationMr. sharednies Wen and shared inside with their informationinside professional information with partners with terviewsTimes with indicate former that PingMr. Ma An whoheld execu- workedan af- withtitiesOn Mr.who Dec.ahead Ma worked 26, ofwho and Ping2002, worked Mr. An’swith Ping Hu listing Mr. An withat Ma filingson Mr. theand Ma show, Mr. and Hu Mr. at Hu at time, all five companies were man- Chinese restriction on foreign owner- capped at 25 percent. Those rules also Hong Kong resident. he claimed he was owed. aged or controlled by Mr. Zheng.hong. investment Soon after,andAn vehicles began hong. unusual theTimes the relatives werehong. Soon indicateprocess discount, set after, Soon of upofthat transforming Mr. in theMr. after, analysts Ma relatives appliedcomment. theheld it- relativesan say, to af- of investors Mr.public of from Mr.comment. documents Hongcomment. Kong, ashometown holding on $120 his identity mil- card— or— thesug-even prime their minister’s children’s familyspouse’s in 2000,rela- said who help sell shares to the public are le- tives. ternoon meeting and then dinner with Hong Kong Stock Exchange. At one ship. aged or controlled by Mr. Zheng.After searchingthe primeship. the minister’s local govern- familythe in prime 2000, minister’s said appliedfamily family to investors members. in 2000, from said family Hong Kong, familymembers. members.After searching the local govern- Corporate records reviewedthe by The corporatea company headquarterstheCorporate corporate the run and corporate by inother headquarters Shen-Duan public headquarters Weihong, recordsWen and inmainland a Shen-colleagues insince Chinaself Shen-Wen intoHSBC ofternoon in a his and orderfinancialWen hadwife colleagues meeting to andtwo tookconglomerate. avoid colleaguesmonths andcon- a of then his earlier dinnerwhowife of his aretook withac- wife still con- took consideredlion con- worthFor foreign Taihong, of Ping be- Angestsit wasment stock that a database, blockbuster through Mr. Zheng police a waspur- in tives Luhe in fact County— ato trade stocks of a listed state- gally obligated to disclose the identities Mr. Ma,the primewho is minister’s 56 and wifestill andruns Li Ping Chu- time, all five companies were man- At that point, Goldman Sachs and cappedFor at Taihong,25 percent. it Those wasCorporate arules blockbuster andalsoFor other Taihong, publicpur- it records wasthat a blockbustershe Atbought that point, thepur-that Ping Goldman shethat An bought Sachssheshares bought the and for Ping whothe An Ping areBut shares still An there considered shares for are for foreign manyBut there be-But unanswered ment there are database, many are manypolice unanswered in unansweredLuhe County Times indicate that Mr. Ma heldzhen an af- during Wen theshow zhenfamily same that during zhen periodfriend the duringinvestment thefrom corrob- same the the vehiclesprime periodsame min- Chinese period corrob- quiredrestriction corrob-The thecompany its on prime 10 foreign percent was minister’s owner-not only stake wife allowed andforcause to Li about Chu-Hong Kongpair isof governedinvestment sep- companiesHong Kong resident. linked to of only those shareholders controlling a nyan, who ran Ping An’s office in Bei- trol of Morgan that investment Stanleytrol owned oftrol that vehicle, about of investment that 15 the per- investmentappliedchase. vehicle, to investors By vehicle, 2007, the from show when thechase. Hong that the chase. Kong, By the price 2007, investment By of when Ping2007,said no vehiclesthe when suchher price theown person Morgan of price personal Ping existed owned of Stanley Ping account.her in company. owned theownher personal aboutThe own Wen 15 personal per- account.rel- cause account. The Hong Wen The Kong rel- Wen is governed rel-questions sep- aboutsaid the no relatives’ such person holdings, existed in the An, declinedternoon meeting to comment and then for dinnerthis article. with agedorate or controlled Mr. Hu’sby Mr. recollectionsZheng. ship. and the retain nyan, property who and ran Pinglife insurance An’s officearately. li- in Bei- After searching the local govern- questions about the relatives’questionsstake holdings, larger about than the 5 percent. relatives’ The holdings,Times jing, on June 17, 1999. orate Mr. Hu’sister’s controlled recollections hometown,orate by Mr. Mr. and Zheng acquired Hu’s the formed recollectionsrecords Ping nu- An show.cent of and$1.60 Ping therecordsa An’s share, shares,records show.according and show. by 2002,to publicwho arefilings. still consideredTaihong.controlledAn’s foreign stock by be- Mr. peaked,Zhengcounty, formed the and nu- 159that cent the million IDof Ping numberThe An’s Times wasshares, foundand by 2002, no indicationarately. that county, and that the ID number was Interviews with four senior executives Corporate and other public records At that point,censes, Goldmanjing, but onalso June licenses Sachs 17, 1999. and that permittedAn’s stock peaked, theAn’s 159 stock millionment peaked,database,atives police the only in 159 Luheappear million Countyatives in the onlyativesTaihong appear only share- appear in the Taihonginanalysts the Taihong share- consulted share-analysts by Theanalysts consultedfound Times that consulted said, at by its The peak, by Times Taihong, The Times said, the in- said, the primeIt is not minister’s known what wife they andcontent Lidiscussed, Chu- of thestock documentsmerouscontent through businesscontent of reviewed a the company partnerships of documents the by documents called with reviewed Tai- the reviewed Britishby Cosco bybank did HSBC not held return 10 per- calls seekingUsing a ChineseMs. merousgovernment-issued Duan, business who says partnershipsnot she in gottheir with to records. knowthe And British Zheng bank Chen- HSBC held 10 per- Using a Chinese government-issued not in their records. And Zheng Chen- show that the investment vehiclesAccordingMorgan to Stanley itdocuments to operateAccording ownedIt is not aboutAccording aPing brokerage known to An 15 documents per- filedwhat to and documentsthey cause a shares trust discussed,Ping Hong An werePing Kongfiled An valued is filed governedshares at shares $3.7 were sep- billion valued weresaid no— valued at such $3.7holding person at billion $3.7 records, existed billion —Mr. inWen sheholding — the said,sharedholding records, because inside records, sheinformation her said, she because said, with because her herlike who mightvestment have vehicle known tied to the about Wen thefamily, who nyan,workedbut whothe withrelationship ran PingMr. Ma An’s seemed and office Mr.The to in flourish. Hu Bei-Times at concerninghong.theThe relativesSoon Times PingThe after, of An’s Timesconcerning Mr. the lobby- Wen, concerning relatives around Ping the ofAn’s Ping Mr. cent.lobby- An’s Under lobby- rules issued in 1998 by identity card in histhe name, relatives Mr. Zheng of Mr. Wen,gyu, around who compiles the cent. family Under histories rules in issued in 1998 by identitylike cardwho in might his name, have Mr. known Zhenglike who aboutgyu, might who the compiles have known family histories about thein controlled by Mr. Zheng formed nu-aheadcent of its of PingHongcomment.company. An’s aheadKong butshares, It the listing,aheadof was relationship itsand also Hong byofTaihong allowed its 2002, Kong Hongseemed to arately.obtain listing, Kongthough to flourish. a listing, Taihong by 2007 Taihongthe Taihong primethough minister’s hadthough by already2007 by county, Taihongfamily 2007 sig- Taihong and in had 2000, that already the hadsaid ID already sig- numberfamily sig- company was members. bor rowed the government-is- never held more than a 3.2 percent the jing, corporateAround on June the 17, headquarters same 1999. time, a diamond in Shen- com- time of the Ping An investments, and China’s insurance regulators, total was able to controltime companies of the Ping that An investments,Luhe County, companyand said:China’s “I’ve bor rowednever insurance heard the regulators, government-is-company total borrowedwasrelatives’ the able government-is- to control purchases companiesrelatives’ and relatives’ that whether purchasesLuhe purchases any- County, and said: whether and “I’ve whether never any- heard any- ing efforts andWenmerous meetings anding business effortscolleaguesing with efforts andpartnerships the of meetings rela-his and wife meetings with took with con- the with British rela- thebankFor bankrela- Taihong,license. Around HSBC the held it wassame 10 per-atime, blockbuster a diamondUsing apur- com- Chinesethat government-issued she bought the notPing in theirAn sharesrecords. for And ZhengBut Chen- there are many unanswered stake. zhen duringItpany is not partly known the controlled same what periodthey by discussed, the corrob- relatives financed two start-ups run byacquired the foreign 77.7 million investmentacquired sharesacquired in 77.7 Pingof Pingmillion An77.7 An was million sharesheldnificantly shares of more Ping thanof reducedAn Ping onefinanced nificantlyAn billion its stake, twosharesnificantly start-upsreduced according of reducedof runthis its name.” stake,by sued its the stake, according identityforeign according investment cardssued of identityinothersued Ping peopleidentity An cards was — ofcards held otherone more of peoplehad other than a peopleone legal — billion obligationone — shares hadone of a to had legal of disclose this a obligation legal name.” obligation to disclose to disclose but the relationship seemed to tivesflourish. of Mr. Wen.trolthe relativestives of that oftives ofMr. investment Mr. Wen.of Wen, Mr. Wen. around vehicle, the cent. the Underchase. Together, rules Bypany issued 2007, partly analysts in when controlled 1998 say, the by the price by identity licenses the of relatives Ping card in hisher name, own Mr.personal Zheng account.gyu, who The compiles Wen rel-family historiesquestions in about the relatives’ holdings, Another question that remains unan- orate of Mr. Ms. Hu’s Zhang recollections began occupying and office the from the China Oceanfromof Shipping Ms.thefrom ZhangChina the Compa- beganOceanChina occupying OceanShippingto public Shipping office Compa- filings. Compa-to publicto filings.public filings. mistakenly, she said,mistakenly, frommistakenly, relatives she said, she of from said,that relatives from information. relatives of that of information.that information. Around the same time, a diamondIn com- addition,records timeLi Chunyan, of Inthe show. addition, Ping In who An addition, investments, ranLi Chunyan, the Li Chunyan, and whoChina’s ran who the An’sran insurancewere the stockworth regulators, a peaked,fortune in total China’s the 159was tightly able million to controlatives companies only appear that inLuhe the TaihongCounty, said: share- “I’ve neveranalysts heard consulted by The Times said, swered is how Taihong was able to buy contentspace of the at the documents Ping An office reviewed tower in Bei- by financed two start-ups run by theny, a foreign global investment shippingny,space a giant in globalny, at Ping the a known Pingglobal An shipping wasAn asoffice shipping held giant tower moreWhile knownin giant Bei- than Taihong known oneas billion was asWhile the shares shareholder TaihongWhile of ofTaihong thiswas of name.” the was shareholderthe the prime shareholder minister of the of — primeto thehelp primeminister mask minister her — to help — to mask help hermask herExecutivesshares at of Morgan Ping An at Stanley a price thatand ap- pany partly controlled by the Beijing relatives office, confirmedAccordingBeijingBeijing in office,to adocuments telephone office,confirmed confirmed Ping in An a telephonefiled in a telephonesharesregulated were marketplace. valued at $3.7 billion — holding records, she said, because her Executives at Morgan Executives Stanley and at Morgan Stanley and The Timesjing, accordingconcerning to recordsPing An’s the diamondlobby- Cosco, and 2.2 million“TheyCosco,jing, more were Cosco, accordingand one shares 2.2 of and millionthe to from recordsfew2.2 millionwho more thegotrecord, shares diamondtomore the shares from beneficiaries fromrecord, record, ofthe the beneficiaries Ping the beneficiaries An ofown the Ping Pingof the An An Pinglikestake whoownAn from Ping might theown Anpublic. Ping have stake An known from stake the aboutGoldmanfrom public. the the public. Sachs sayGoldman theyGoldman were Sachspears unaware to saySachs have they beensay were they highly unaware were discounted. unaware of company Ms. Zhang filed began with occupyingregulators.interview officeLater, a thatahead duringinterview of thatitsinterview Hong period that Kong during he that had listing, during that periodTaihong that periodhe hadthough he had by 2007 Taihong had already sig- etly accumulating large blocks of PingCosco’s In Dalian an interview,enjoy subsidiary.Cosco’s thesecompany Ms.Cosco’s gold-digging Dalian Duan filed A two-for- with said Dalian subsidiary. benefits,” regulators. she subsidiary.torydeal said Later, Adocuments. were two-for- a A cloaked etlycompany two-for- All accumulatingofdeal them behind borwere weredeal rowed more largelisted, cloaked were than blocksthe cloaked shares behindgovernment-is- a of Ping by behind more “In Communist the In than more an end,” interview, relatives’ a Party than Ms. members a“In Ms.Duan purchases the Duan“In said, end,” said the “I and Ms.she end,” re- whether Duan tory Ms. documents. said,Duan any- “I said, All re- of “I them re- were listed,By lateshares 2002, byPing Communist An had already Party be-members ing effortsspacestart-up at andthe co-foundedPing meetings An office by with tower Wen the Yunsong,in Bei- rela- brought Ms. Zhang to meet the Ping An of the share purchasesof the and shareof the were purchasesshare not purchasesin- and were and not were in- not in- brought Ms. ZhangacquiredAn stock. to meet77.7brought million the Ping Ms. shares AnZhang ofone toPing meet stock Anhad the paid split Pingnificantly about Bob doubled oneAn Leung, 40start-up centsstock reduced one the a longtimea co-founded split numberstockshare its doubled at splitinsurance stake, cur- ofby doubled Wen accordingthealongdozen ana- Yunsong, number with theinvestment Ms. number ofAn suedDuan, stock. dozen vehicles identity ofas the investmentdozen owners controlled cards investment of of vehicles otherandby their vehicles people controlledfamilies.had —controlled paid by aboutone had 40by cents a legala share obligation at cur- along to disclose with Ms. Duan, as the ownerscome of aand hot their I.P.O. families. prospect following a tivesjing, ofthe Mr. according son Wen. of Ms. to Zhang records and the the diamondprime min- the son of Ms. Zhang and the prime min- ceived 100 percentceived of the ceivedreturns.”100 percent 100 percent of the returns.” ofvolved the returns.” in the transactions.volvedvolved in the transactions. in the transactions. chairman, Mr.from Ma. chairman,the Chinachairman, Mr.Ocean Ma. Mr.Shipping Ma. Compa-rent exchangeto lystpublic at rates, UBS filings. in or Hong a total Kong. of $65 Taihong. mistakenly, she said, fromFor relatives instance,rent ofthe exchange rules barred rates, party or a total of $65 Taihong. big investmentFor instance, by HSBC. the rules barred party companyister, won filed a with lucrative regulators. technology Later, con-a etly accumulating large blocks of PingsharesIn Taihong an interview, owned.shares ister, Ms. So shares DuanTaihong won in June a said lucrativeTaihong owned. 2004, she technologyowned. torySothe indocuments. Junerelatives So con- in 2004, June All of of 2004,Mr. themthe Wen, wererelativesthe includinglisted, relatives of Mr.shares two ofWen, Mr. by including CommunistWen, including two Partythat memberstwoinformation. In addition, Li Chunyan, who ranThe the documentsny, a and globalThe interviews documents shippingThe documents shed giant and interviews known and interviews million, as shed to While acquire shedBy late Taihong the 2002, shares. Ping was An the had shareholder not simplyAnd by of 2007, the prime minister’s officials in chargemillion, of a to state-owned acquire the com-shares. AndThe by companies 2007, the prime alsoThe minister’ssaid companies ThethatThe companiesa typicalofficialsanswers also in saidto charge alsosome that said of of thea a typicalthatstate-owned questions, a typical com- start-uptract from co-founded Ping An, by Wen according Yunsong, to in- AnBuying stock. Into Ping An just had before paid about Ping 40just An’s centstract before Hong just a from share before Ping Kong at cur- An, An’s Pingof- according along Hong An’sbrothers-in-law, with to HongKong Ms. in- Duan, of-KongBuyingthe aprimeas brothers-in-law, of- sister-in-law,the Into ownersministerbrothers-in-law, Ping of An as— and ato well sister-in-law, helptheir a families.mask sister-in-law, her as well asExecutives well at Morgan Stanley and Beijing office, confirmed in a telephone The pricesurvived seems to the have downturn, been a huge its prospectsmother, who is now 91, was listed on pany from usingThe their price parents, seems children to have been a huge mother,I.P.O. who process is now is 91, unlikely I.P.O. was listed processI.P.O. to uncoverlegal on process isexpertspany unlikely the from issay, unlikely using mayto uncover turntheir to on parents,uncover who the was children the the son of Ms. Zhang and the primeno min- light on Cosco, whetherno and light those2.2no million on light meetings whether onmore whether shares those from those meetings meetingsrecord, terviewsthe beneficiaries with former of Ping the AnPing execu- An own Ping An stake from the public.The Fallout The FalloutThe Fallout interviewterviews that during with former that period Ping An he execu- had On Dec. 26, 2002, Ping An filings show,fering,rentand exchange Taihong unusualhad rates,fering, begun helddiscount, or fering, to 159.8 a Taihong look total analysts bright. of million Taihong $65 say, held The Taihong. compa-publicas held159.8 several documents 159.8 million longtime millionOn as Dec.as holding 26, several colleagues2002,as $120 Ping several mil- longtime An filings andFor longtime instance,show, colleagues colleaguesand the rules unusual andGoldman barred and discount, party Sachs analysts say they say, werepublic unaware documents as holdingultimate $120 mil- identityinvolved— or in of even brokering shareholders their children’s the deal who thatspouse’s led rela- ister, won a lucrative technologyplayed con- a roleCosco’s in theplayed decision Dalianplayed a role by subsidiary. inagovern- rolethe decisionin the A decision two-for- by govern- by dealgovern- weretives. cloaked behind more than a — or even their children’s spouse’s rela- ultimate identity of shareholdersultimate identity who of shareholders who tives. a company run by Duan Weihong,shares, a million,since or about toHSBC acquireny’s 3.2 hadshares, percentthe restructuring two shares. shares,months or ofabout Ping earlier bolsteredor 3.2 aboutAn’s percentac- 3.2 revenueAndlionbusiness percent of worth byPing 2007, of ofAn’s partners Ping Pinga the company“In An’s primeAnbusiness the ofstock minister’s hisrun end,” business through bywife, partners Ms. Duan a Zhang partnersofficialsDuan Weihong, of hissaid,in charge ofa wife,In “I his2001,since re-of Zhang wife,a HSBCstate-ownedChinaof Zhang hadthe issued twoshareIn com- months2001, new purchasesIn Chinaregulations earlier2001, issued Chinaac- and werelion issuednew worth notregulations new in- of Pingregulations An stock throughto a thetives relatives’ — to trade acquiring stocks sharesof a listed in state- broughttract Ms. from Zhang Ping An,to meet according the Ping to in- An Buyingment Into Ping regulators An to abandon plans to Mr. Ma, who is 56 and still runs Ping tives — to trade stocks of a listed state- are hiding behindare layers hidingare of investment hiding behind behind layers layers of investment of investment Mr. Ma, who is 56 and stillment runs Ping regulatorsoneWen family stock to abandon friend splitment doubledfrom regulatorsplans the prime tothe number tomin- abandonThe quired of price plansdozen its seemsand 10 stock, profits. percenttoinvestment to have according In stake Octoberbeen vehicles fora huge of to about that public controlled year,mother, pairBeili,filings. one of whoaccording investment by is nowWenceived to 91,companiesfamily Beili,corporate was100 friend percentaccording listedBeili, linked fromand onaccording ofto regula-the tothepany primecorporate returns.” from to min- corporate using andquired their regula- and parents, itsvolved regula- 10 percent thatchildren in theput stake transactions.restrictions for about on pair trading of investment in listed companies linkedPing to Anowned in the company. period before the compa- chairman,terviews Mr. with Ma. former Ping An execu- On Dec. 26, 2002, Ping An filings show,stock, according to publicAn, declinedstock, filings. accordingto comment forto publicthis article. filings. owned company.that put restrictions on tradingthat put in restrictions listed vehicles on trading using in unrecognizable listedvehiclesvehicles using names. unrecognizable using unrecognizable names. names. An, declined to comment for splitthis article. up Pingsharesister’s An. splitBut hometown,Taihong inup splitApril Ping owned.up acquired2002, An. Ping But theSo An. Ping inin JuneBut April An in and2004, 2002,April unusual the 2002,theof relativesdiscount,the world’s analystsof biggestMr. Wen, say, banks, includingpublic HSBC, documents two ister’s as holding hometown, $120 mil- acquired— or Ping even Antheir children’s$1.60 a share, spouse’s according rela- to public filings. Taihong. ny’s publicThe offering Times in found 2004, noand indication wheth- that tives. $1.60 a share, accordingInterviews to public with filings. four senior Taihong. executives The Times found no indicationThe companies that also said that a typical The Interviews documents with and four interviews senior executives shed a companystock nation’s through run by a top company Duan regulators Weihong, called delivered aTai- since HSBC their hadagreed two to months pay $600 earlier million ac- to acquirelion worth a of Pingstock An stock through through a company a tives called — to Tai- trade stocksCosco of dida listed not state- return calls seeking Ms.According Duan, who says to she regulations Accordinggot to knowAccordinger the in to deal-makersMr. Hong regulations Wen to shared regulations were inside seeking in information Hong to in gain Hong with Mr. Ma, who is 56 and still runsnation’s Ping top just regulators before nation’s delivered Ping An’s top their Hong regulators Kong delivered of-Coscobrothers-in-law, did their notwho return worked calls a with sister-in-law, seeking Mr. Ma and Mr.Ms. as HuwellDuan, at who says she got to know Mr. Wen shared inside I.P.O.information process with is unlikely to uncover the no lightwho onworked whether with Mr. those Ma and meetings Mr. Hu at Wen family friend from the prime min- quired its 1010 percent percent stake stake forin the about companypair from of investmenthong.The companies SoonFallout after,linked the to relativesowned ofcompany. Mr. comment. theKong prime minister’sand China, family publiclyKong in 2000, andKong listed said favorsChina, and compa- familyfrom China,publicly the members. regulators. publicly listed compa-listed compa- An, declined to comment for thisverdict. article. Withfering,hong. approv verdict. Soon Taihongal after,verdict. of With the the held relativesapprov With State 159.8approv al of Mr. of millional the comment. of State theas State severalthe corporate longtime headquarters colleaguesthe in prime Shen- and minister’s family in 2000, said family members. the corporate headquarters in Shen- ister’s hometown, acquired Ping An $1.60 a share,Ping according An. Just to public over filings. a year later,Taihong. reg- Wen and colleagues of his wifeThe took Times con- foundFor no Taihong, indicationultimate it was that identitya blockbuster of shareholderspur- that she bought who the Ping An shares for“The key questions are: why were playedInterviews a role in with the four decision senior by executivesCouncil govern- and insuranceWen andCouncil colleagues regulators,Council and ofinsurance hisand Pingwife insurance took regulators, con- regulators,For Ping Taihong, Ping itzhen was a during blockbuster the same pur- periodthat corrob-she bought the Ping An shares for But there are many unanswered nies and their professionalnies andnies their and partners But professionaltheir there professional are partners many partnersunanswered zhen during the same period corrob- stockshares, through or about a company 3.2 percent called of Tai- Ping An’sCosco didbusiness ulators not return app partnersroved calls the seeking of company’s his wife, Ms. appli- ZhangDuan, who trolsaysIn of she2001, that got China investmentto know issued Mr. vehicle, new Wen regulations shared the chase.inside information Byare 2007, hiding when with the behind price oflayers Ping of her investment own personal account. The Wen rel-these people chosen, and on what terms mentwho regulators worked with to Mr. abandon Ma and Mr. plans Hu at to trol of that investment vehicle, the chase. By 2007, whenorate the Mr. price Hu’s of recollections Ping her andown thepersonal account. The Wen rel- questions about the relatives’ holdings, who help sell shareswho to helpthewho public sell help shares questionsare sell le- shares to theabout publicto the the relatives’ publicare le- areholdings, le- orate Mr. Hu’s recollectionsAn andbegan the thehong.stock, process SoonAn according began after,of transformingAn the thebegan to relatives process public the it- processfilings. ofof Mr.transforming ofcomment. transforming it-Beili,cation accordingit- to list and sellto corporate shares on the theand Hong prime regula- minister’srecordsthat family put show. inrestrictions 2000, said onfamily trading members. in listedAn’s stock peaked, the 159 million atives only appear in the Taihong share-did they get the shares?” said Jerome the corporate headquarters in Shen- records show. An’s stock peaked,content the of the 159 documents million reviewedatives only by appear in the Taihong share- analysts consulted by vehicles The Times using said, unrecognizable names. analysts consulted by The Times said, split upcontent Ping ofAn. the But documents in April reviewed self2002, into the bya financialWen andself colleagues conglomerate. intoself a offinancial into his wifea financial tookconglomerate. con- conglomerate.For Taihong, Kong it was Stock a blockbuster Exchange. pur- that she bought the AccordingPing An shares to documents for Ping An filed shares were valued at $3.7 billion — holdinggally records, obligated she said,to gallydisclose because obligatedgally the herA. obligatedCohen,identities to disclosea professor to disclose the at Newidentities the York identities Uni- zhen during the same period corrob- According to documents Ping An filed shares were valuedThe Times at $3.7 concerning billion — Ping holdingAn’s lobby- records, she said, because her Butlike who there might are have many known unansweredAccording about the to regulations in Hong like who might have known about the nation’sThe top Times regulators concerning delivered Ping An’s theirlobby- trol of that investment vehicle, the chase. By 2007,While when Ping the priceAn was of preparingPing her for own its personal aheadaccount. of itsThe Hong Wen Kong rel- listing, Taihong though by 2007 Taihong had already sig- companyof only bor thoserowed shareholders the government-is-of onlyof those onlycontrollingversity shareholdersthose Law shareholdersa School controlling and an controlling expert a on a orate Mr. Hu’s recollections andThe the companyahead was ofThe itsnot Hong companyonlyThe Kong allowed company listing, was to not Taihong was only not allowed onlythough allowed to by 2007 to Taihonging efforts had and already meetings sig- withcompany the rela- borrowed the government-is- questionsrelatives’ about purchases the relatives’ and whether holdings, any- relatives’ purchases and whether any- verdict.ing With efforts approv and meetingsal of with the the State rela- records show. An’s stock listing peaked, in Hong the Kong, 159 million a group ofatives invest- only appearacquired in the Taihong 77.7 million share- sharesanalysts of Ping consultedAn nificantly by The Kong reduced Times and said,its China, stake, accordingpublicly listedsuedstake compa- identity larger cards than of other stake5 percent. people largerstake China’s —The largerthan oneTimes legal 5 had thanpercent. system. a 5 legal percent. “Obviously, The obligation Times The every- to Times disclose content of the documents reviewedretain by propertyacquired andretain 77.7 life retainmillion property insurance shares property and of li- Ping life and An insurance lifenificantly insurance li- reduced li-tives its of stake, Mr. Wen. according sued identity cards of other people — one had a legal obligation to disclose JIM WILSON/THE NEW YORK TIMES tives of Mr. Wen. According to documents Ping An filed shares wereors valued with close at $3.7 ties billion to senior — officialsholding in records, shefrom said, the China because Ocean her Shipping Compa- to public filings.nies and their professionalmistakenly, partners she said, from relatives one of wouldthat information. like to get in before a hot CouncilThe Timesand insurance concerning regulators,Ping An’scenses, lobby- Ping but alsofrom licenses thecenses, China censes,that butOcean alsopermitted Shippingbut licenses also Compa- licenses that permitted thatto public permitted filings. In addition, Li Chunyan, whomistakenly, ran the she said, from relatives of likethat who information. might have known about the found that at its peak,found Taihong, thatfound at that its the peak, at in- its Taihong, peak, Taihong, the in- the in- In addition, Li Chunyan, who ran the ahead of its Hong Kong listing, Taihong though by 2007Beijing, Taihong including had already Wen Jiabao, sig- werecompany qui- borrowedHuny, Kun the a globalis government-is- a former shipping Ping giant Anrelatives’ employee known purchases as who servedWhile and Taihongas who whether staff help assistantwas any- sellthe shareholder shares to Ma Mingzhe, to theof publicthe the prime company are minister le- chairman. — to help mask herI.P.O.” Executives at Morgan Stanley and An beganing efforts the process and meetings of transforming with the rela- it- ny, a it global to operate shipping a giant brokerage known as and a While trust TaihongBeijing was the office, shareholder confirmed of in thea telephone prime minister — to help mask her Executives at Morgan Stanley and vestment vehicle tiedvestment to thevestment vehicleWen family, vehicle tied to tiedthe Wento the family, Wen family, Beijing office, confirmed in ait telephone to operateacquired a brokerage 77.7 millionit to and shares operate a trustof Ping a brokerage An nificantly and reduced a trust its stake, according sued identity cardsCosco, of otherand 2.2 people million — moreone shares had from a legalrecord, obligation the beneficiaries to disclose of the Ping An own Ping An stake from the public. Goldman Sachs say they were unaware self intotives a of financial Mr. Wen. conglomerate. Cosco, and 2.2 million more shares from record, the beneficiariesinterview of that the during Ping An that periodown Pinghe had An stake from the public. Goldman Sachs say theygally were obligated unaware to disclose the identitiesnever held morenever than never held a 3.2 more held percent morethan a than 3.2 apercent 3.2 percent interview that during that periodcompany. he had Itfrom was the alsocompany. China allowed Oceancompany. It to Shippingwas obtain Italso was Compa- a allowed also allowed toto publicobtain to filings. obtaina a mistakenly, she said,Cosco’s from Dalian relatives subsidiary. of that A information. two-for- deal were cloaked behind more than a “In the end,” Ms. Duan said, “I re- of the share purchases and were not in- The Incompany addition, wasLi Chunyan, not only who allowed ran the to Cosco’s Dalian subsidiary. A two-for- deal were cloakedbrought behind Ms. more Zhang than to meet a the“In Ping the An end,”one Ms. stock Duan split said, doubled “I re- the numberof the share of purchasesdozen investment ofand only were vehiclesthose not in- shareholders controlled by controlling a brought Ms. Zhang to meet thebank Ping license. An ny, a globalbank shipping license.bank license. giant known as While Taihong was the shareholder of the prime minister — to help mask her Executives at Morgan Stanley and ceivedstake. 100 percent of the returns.”stake. stake. volved in the transactions. Beijing office, confirmed in a telephone one stock split doubled the number of dozen investmentchairman, vehicles Mr.controlled Ma. by ceived 100 percentshares of the Taihong returns.” owned. So in volvedJune 2004, in the transactions.the relativesstake of Mr. larger Wen, thanincluding 5 percent. two The Times retain chairman, property Mr. and Ma. life insurance li- Cosco, and Together,2.2 million more analysts shares say,from therecord, licenses the beneficiaries of the Ping An own Ping An stake from the public. Goldman Sachs say they were unaware Another question Anotherthat remainsAnother question unan- Thequestion thatcompanies remains that also remains saidunan- that unan- a typical interview that during that period heTogether, had analystsshares Taihong say, owned.Together, the licenses So in analystsJune 2004, say,the the relatives licenses of Mr.The Wen, documents including and two interviews shed just before Ping An’s Hong KongThe companies of- brothers-in-law, also said that a a sister-in-law, typical as well censes, butThe also documents licenses and that interviews permitted shed Cosco’s Dalian subsidiary. A two-for- deal were cloaked behind more than a “In the end,” Ms. Duan said, “I re- of the share purchases andfound were not that in- at its peak, Taihong, the in- swered is how TaihongI.P.O. process was is ableunlikely to tobuy uncover the brought Ms. Zhang to meet thewere Ping Anworth ajust fortune beforewere in Pingworth wereChina’s An’s wortha fortune tightly Hong a fortune Kong in China’s of- in China’sbrothers-in-law, tightly tightly no a sister-in-law, light on whether as well those meetings fering, Taihong held 159.8I.P.O. million process asis unlikely several to longtime uncover the colleagues and Theswered Fallout is how Taihong wasswered able is to how buy Taihong was able to buy it to operateno light a on brokerage whether those and meetings a trust one stock split doubled the number of dozen investment vehicles controlled by ceivedThe 100 Fallout percent of the returns.” volved in the transactions.vestment vehicle tied to the Wen family, ultimate identity of shareholders who chairman, Mr. Ma. regulated marketplace.fering,regulated Taihongregulated marketplace. held marketplace. 159.8 million as several longtimeplayed a colleagues role in the decision and by govern- shares, or about 3.2 percent ofultimate Ping An’s identitybusiness of shareholders partners of who his wife, Zhang Inshares 2001, China of Pingissued Annewshares atregulations a shares price of Ping that of An Ping ap- at An a price at a that price ap- that ap- played a role in the decision by govern- shares Taihong owned. So in June 2004, the relatives of Mr.ment Wen, regulatorsincluding two to abandon plans to never held more than a 3.2 percent are hiding behind layers of investment company.The It documents was also and allowed interviews to obtain shed a shares, or“They about 3.2were percent one of Ping the fewAn’s whobusiness got to partners of his wife, Zhang In 2001, Chinastock, issued according new regulations to public filings.Theare companies hiding behindBeili, also layersaccordingsaid that of investmentato typical corporate and regula- thatpears put restrictions to have on been tradingpears highly in topears listed have discounted. to been have highly been highly discounted. discounted. ment regulators to abandon “They plans to werejust one before of the Ping few An’s“They who Hong weregot Kong to one of- of thebrothers-in-law, few who got ato sister-in-law,split up Ping An. as wellBut in April 2002, the vehicles using unrecognizable names. bankno license. light on whether those meetings stock, according to public filings. Beili, according to corporate and regula- Thethat Fallout put restrictions on trading in listed I.P.O.vehicles process using is unlikely unrecognizable tostake. uncover names. the By late 2002, Ping An had already be- split up Ping An. But in Aprilenjoy 2002, these the fering, gold-digging enjoy Taihong theseenjoy benefits,” held gold-diggingthese 159.8 said gold-digging million benefits,”as benefits,” several said longtime saidnation’s colleagues top regulators and delivered their ultimate identity of shareholders who By late 2002, Ping An hadBy alreadylate 2002,According be- Ping An to regulations had already in be-Hong Together,played a role analysts in the decision say, the by govern- licenses According to regulationsAnother in Hong question that remains unan- nation’s top regulators deliveredBob Leung, their shares, a longtime orBob about Leung, Bob insurance3.2 percent Leung, a longtime of ana- Ping a longtime An’s insurancebusiness insurance ana- partners ana- verdict. of his wife, With Zhangapproval ofIn the2001, State China issued new regulations are hiding behind layers of investment come a hot I.P.O. come prospect acome hot following I.P.O. a hotKong prospect I.P.O. and a China, prospect following publicly following listed a compa- a ment regulators to abandon plans to Kong and China, publiclyswered listed iscompa- how Taihong was able to buy were worthverdict. a fortune With approv in China’sal of lyst the tightly at State UBSstock, in Hong accordinglyst Kong. at lystUBSto public at in UBS Hong filings. in Kong. Hong Kong.Beili, according to corporateCouncil and and insurance regula- regulators,that put restrictions Ping on trading in listed vehicles using unrecognizable names. big investment by bigHSBC. investmentbig investment niesby HSBC. and by theirHSBC. professional partners split up Ping An. But in April 2002, the nies and their professional partners who help sell shares to the public are le- regulatedCouncil marketplace. and insurance regulators, Ping An began the process of transforming it- According to regulationsshares in Hong of Ping An at a price that ap- The answers to some of the questions, nation’s top regulators deliveredBy their late 2002, PingBy An late hadBy 2002, not late simply Ping 2002, An Ping had An not had simply not simply who help sell shares to the public are le- The answers to some of theThe questions, answersgally obligated to some to discloseof the questions, the identities “TheyAn werebegan onethe process of the offew transforming who got to it- self into a financial conglomerate. Kong and China, publicly pearslisted compa- to have been highly discounted. verdict. With approval of thesurvived State the downturn,survivedsurvived its the prospects downturn, the downturn, its prospects its prospects gally obligated to disclose the identities legal experts say, legalmay turnexpertslegal on experts whosay,of only wasmay say, those turn may shareholders on turn who on was controllingwho was a self into a financial conglomerate. The company was not only allowed to nies and their professionalBy late partners 2002, Ping An had already be- enjoyCouncil these and gold-digging insurance regulators, benefits,”had Ping begunsaid to lookhad bright. begunhad The begun to compa- look to bright. look bright. The compa- The compa- of only those shareholders controlling a involved in brokeringinvolved theinvolved deal in brokering that stake in brokeringled larger the than deal the 5 percent. that deal led thatThe Times led The company was not only allowed to retain property and life insurance li- who help sell shares to thecome public aare hot le- I.P.O. prospect following a Bob An Leung,retain began the propertya longtime process and of insurancetransforming life insuranceny’s ana- restructuringit- li- ny’s bolstered restructuringny’s restructuring revenue bolstered bolstered revenue revenuecenses, but also licenses that permitted stake larger than 5 percent. The Times to the relatives’ to acquiring the to relatives’ the shares relatives’found acquiring in that at acquiring its peak, shares Taihong, shares in the in in- lyst atself UBS into ain financial Hong Kong. conglomerate. gallyfound obligated that at to its disclose peak, big Taihong,the investmentidentities the in- by HSBC. vestment vehicle tied to the Wen family, censes, but also licenses thatand permitted profits. In Octoberand profits. ofand that profits. Inyear, October oneIn October of that ofyear, that one year, oneit to operate a brokerage and a trust of only those shareholders controlling a Ping An in the periodPing before AnPing in thethe An compa- periodin the periodbefore beforethe compa- the compa- The company was not only allowed to company. It was also allowed to obtain a vestment vehicle tied to theThe Wen answers family, to some of the questions, never held more than a 3.2 percent By lateit to 2002, operate Ping a brokerageAn had not andof simply the a trust world’s biggestof the of banks, world’s the world’s HSBC, biggest biggest banks, banks, HSBC, HSBC, stake larger than 5 percent. The Times ny’s public offeringny’s in 2004,publicny’s and publicoffering wheth- offering in 2004, in and 2004, wheth- and wheth- retain property and life insurance li- bank license. never held more than a 3.2 percent stake. survivedcompany. the downturn,It was also allowed its prospects to obtain a found that at its peak, Taihong,legal experts the in- say, may turn on who was censes, but also licenses that permittedagreed to pay $600agreed millionagreed to topay acquire to$600 pay milliona $600 million to acquire to acquire a a Together, analysts say, the licenses stake. er the deal-makerser were the deal-makerserseeking the deal-makers to Anothergain were questionseeking were seeking that to gainremains to gain unan- had begunbank license. to look bright. The compa- vestment vehicle tied to theinvolved Wen family, in brokering the deal that led it to operate a brokerage and10 a percent trust stake in10 the percent 10 company percent stake from in stake the in company the company from fromwere worth a fortune in China’s tightly Another question that remains unan- favors from the regulators.favors favorsfrom the from sweredregulators. the is regulators. how Taihong was able to buy Together, analysts say, the licenses never held more than a 3.2 percent ny’s company. restructuring It was also bolstered allowed to Ping obtain revenue An. a Just overPing a yearAn.Ping Just later, An. over Just reg- a over year a later, year reg- later, reg-regulated marketplace. swered is how Taihongto was the able relatives’ to buy acquiring shares“The in key questions“The are: key“The why questions keyshares were questions of Pingare: An why are: at a were why price thatwere ap- were worth a fortune in China’s tightly stake. and bankprofits.regulated license. In Octobermarketplace. of that year, one “They were one of the few who got to shares of Ping An at Ping a price An that in the ap- period before the compa- pears to have been highly discounted. ulators approved ulatorsthe company’sulators approved app appli- rovedthe company’s the company’s appli- appli- Another question that remains unan- these people chosen,these and peoplethese on what people chosen, terms chosen, and on and what on terms what terms of theTogether, world’s“They were analysts biggest one of say, the banks, thefew licenseswho HSBC, got to enjoy these gold-digging benefits,” said pears to have been highlyny’s discounted.public offering in 2004, and wheth- By late 2002, Ping An had already be- cation to list and sellcation shares tocation list on andthe to list Hongsell and shares sell shares on the onHong the Hong swered is how Taihong was able to buy did they get the shares?”did theydid getsaid they the Jerome get shares?” the shares?” said Jerome said Jerome wereenjoy worth these a fortunegold-digging in China’s benefits,” tightly said Bob Leung, a longtime insurance ana- By late 2002, Ping An er had the already deal-makers be- were seeking to gain come a hot I.P.O. prospect following a agreed to pay $600 million to acquireKong Stock a Exchange.Kong StockKong Exchange. Stock Exchange. shares of Ping An at a price that ap- A. Cohen, a professorA. Cohen, at A.New Cohen, a Yorkprofessor a Uni- professor at New at York New Uni- York Uni- regulatedBob Leung, marketplace. a longtime insurance ana- lyst at UBS in Hong Kong. come a hot I.P.O. prospect following a big investment by HSBC. 10 percent stake in the company from pears to have been highlyfavors discounted. from the regulators. “Theylyst at wereUBS inone Hong of the Kong. few who Whilegot to Ping An wasWhile preparing While Ping An Pingfor was its An preparing was preparing for its for its By late 2002, Ping An had not simply big investment by HSBC. versity Law Schoolversity andversity Lawan expert School LawThe on Schoolanswers and an andto expertsome an of expertthe on questions, on Ping An. Just over a year later, reg- By late 2002, Ping An had already“The key be- questions are: why were legal experts say, may turn on who was enjoyBy these late gold-digging2002, Ping An benefits,” hadlisting not saidsimply in Hong Kong,listing a group listingin Hong of in invest- Kong,Hong aKong, group a ofgroup invest- of invest-survived the downturn, its prospects The answers to some of the questions, China’s legal system.China’s “Obviously,China’s legal system. legal every- system. “Obviously, “Obviously, every- every- come a hot I.P.O. prospect following a involved in brokering the deal that led ulatorsBobsurvived app Leung,roved athe longtime the downturn, company’s insurance itsors prospects appli-ana-with close tiesors to withseniorors close withofficials tiesclose toin tiessenior to seniorofficials officials in inhad begun to look bright. The compa- legal experts say, mayJIM theseturn WILSON/THE on people who wasNEW chosen, YORKJIM TIMES WILSON/THE andJIM on WILSON/THE what NEW YORK terms NEW TIMES YORK TIMES one would like to get in before a hot big investment by HSBC. one would like to get inone before would to a the likehot relatives’ to get in acquiring before shares a hot in cationlyst hadto at list UBS begun and in Hong tosell look shares Kong. bright. on Thethe compa-Hong ny’s restructuring bolstered revenue involved in brokering thedid deal they that get led the shares?” said Jerome Beijing, including WenBeijing, Jiabao,Beijing, including were including Wenqui- Jiabao, Wen HuJiabao, were Kun qui- were is a qui-formerandHu profits. Ping KunHu InAnis KunOctober a employeeformer is ofa formerthat Ping year,who An Pingone served employee An asemployee staff who assistant served who served asto staffMaThe asanswersMingzhe, assistant staff toassistant some theto Ma of company the toMingzhe, questions, Ma Mingzhe, chairman. the company the company chairman.I.P.O.” chairman. I.P.O.” I.P.O.” Ping An in the period before the compa- Kong StockByny’s late restructuringExchange. 2002, Ping An bolstered had not simply revenue to the relatives’ acquiringA. Cohen, shares a professor in at New York Uni- of the world’s biggest banks, HSBC, legal experts say, may turn on who was ny’s public offering in 2004, and wheth- survivedand profits. the downturn,In October of its that prospects year, one Ping An in the period before the compa- While Ping An was preparing for its agreed to pay $600 million to acquire a versity Law School and an expert on er the deal-makers were seeking to gain had begun to look bright. The compa- involvedny’s public in brokering offering thein 2004, deal and that wheth- led listing ofin theHong world’s Kong, biggest a group banks, of invest- HSBC, 10 percent stake in the company from China’s legal system. “Obviously, every- favors from the regulators. ny’s restructuring bolstered revenue to er the the relatives’ deal-makers acquiring were seeking shares to ingain ors withagreed close to tiespay $600to senior million officials to acquire in a Ping An. Just over a year later, reg- JIM WILSON/THE NEW YORK TIMES one would like to get in before a hot “The key questions are: why were and10 profits. percent In stakeOctober in theof that company year, one from Pingfavors An in from the theperiod regulators. before the compa- ulators approved the company’s appli- ny’s public offering in 2004, and wheth- these people chosen, and on what terms Beijing,of Ping the including world’s An. Just Wen biggest over Jiabao, a banks, year were later, HSBC, qui- reg- Hu Kun is a former Ping An employee who served as staff assistant to Ma Mingzhe, the company chairman.“The key questions I.P.O.” are: why were cation to list and sell shares on the Hong er the deal-makers were seeking to gain did they get the shares?” said Jerome agreedulators to pay app roved$600 million the company’s to acquire appli- a these people chosen, and on what terms 10 percent stake in the company from Kong Stock Exchange. favors from the regulators. A. Cohen, a professor at New York Uni- cation to list and sell shares on the Hong While Ping An was preparing for its did they get the shares?” said Jerome versity Law School and an expert on PingKong An. Stock Just Exchange. over a year later, reg- “TheA. Cohen, key a questions professor are:at New why York were Uni- ulators approved the company’s appli- listing in Hong Kong, a group of invest- these people chosen, and on what terms China’s legal system. “Obviously, every- While Ping An was preparing for its ors with close ties to senior officials in versity Law School and an expert on JIM WILSON/THE NEW YORK TIMES one would like to get in before a hot cationlisting to listin Hongand sell Kong, shares a group on the of Hong invest- didChina’s they get legal the system. shares?” “Obviously, said Jerome every- Kong Stock Exchange. Beijing, including Wen Jiabao, were qui- Hu Kun is a former Ping An employee who served as staff assistant to Ma Mingzhe, the company chairman. I.P.O.” ors with close ties to senior officials in JIM WILSON/THE NEW YORK TIMES A. oneCohen, would a professor like to at get New in beforeYork Uni- a hot WhileBeijing, Ping including An was Wen preparing Jiabao, were for its qui- Hu Kun is a former Ping An employee who served as staff assistant to Ma Mingzhe, the company chairman. versityI.P.O.” Law School and an expert on listing in Hong Kong, a group of invest- China’s legal system. “Obviously, every- ors with close ties to senior officials in JIM WILSON/THE NEW YORK TIMES one would like to get in before a hot Beijing, including Wen Jiabao, were qui- Hu Kun is a former Ping An employee who served as staff assistant to Ma Mingzhe, the company chairman. I.P.O.” have thin margins,” Mr. Ma wrote in the Sept. 29, and Li Chunyan, who ran Ping An’s office in Bei- 1999, letter to Mr. Wen. The contents were con- jing, on June 17, 1999. firmed by two former top Ping An executives. It is not known what they discussed, but Rather than an out-and-out breakup, Mr. the relationship seemed to flourish. Around Ma offered a middle road. After seeking advice the same time, a diamond company partly con- of other investors, Mr. Ma proposed the forma- trolled by the relatives of Ms. Zhang began oc- tion of a holding company that would effectively cupying office space at the Ping An office tower separate life insurance from property but keep in Beijing, according to records the diamond them under one corporate umbrella, along with company filed with regulators. Later, a start- the securities and trust division. up co-founded by Wen Yunsong, the son of Ms. The company, he said, would re-establish Zhang and the prime minister, won a lucrative itself as the Ping An Group, according to Ping technology contract from Ping An, according to An documents reviewed by The Times. He then interviews with former Ping An executives. began looking for allies to promote his proposal. Mr. Ma, who is 56 and still runs Ping An, In January 2000, with Mr. Ma’s backing, declined to comment for this article. Interviews executives from Morgan Stanley and Goldman with four senior executives who worked with Sachs wrote a joint letter to Mr. Wen arguing Mr. Ma and Mr. Hu at the corporate headquar- that a breakup would “violate China’s policy to ters in Shenzhen during the same period cor- encourage and protect foreign investment,” ac- roborate Mr. Hu’s recollections and the content cording to a copy of the letter reviewed by The of the documents reviewed by The Times con- Times. The letter’s authenticity was verified by cerning Ping An’s lobbying efforts and meet- former executives at the two investment banks. ings with the relatives of Mr. Wen. The American investment banks warned In addition, Li Chunyan, who ran the Beijing that “as a listed company in the U.S., we could office, confirmed in a telephone interview that be required to disclose our losses relating to the during that period he had brought Ms. Zhang to investment in Ping An, which would not be help- meet the Ping An chairman, Mr. Ma. ful for the image of China’s policy of reform and The documents and interviews shed no light opening to the outside.” on whether those meetings played a role in the The letter came after months of aggressive decision by government regulators to abandon lobbying on the part of Ping An executives and plans to split up Ping An. But in April 2002, the the two American banks to persuade other high- nation’s top regulators delivered their verdict. ranking officials in Beijing, including the central With approval of the State Council and insur- bank and the insurance regulator, to hold Ping ance regulators, Ping An began the process of An together, according to corporate documents transforming itself into a financial conglomer- reviewed by The Times. ate. As early as 1999, executives at Ping An also The company was not only allowed to retain began making contact with the relatives of Mr. property and life insurance licenses, but also li- Wen. censes that permitted it to operate a brokerage Hu Kun, a former Ping An employee who and a trust company. It was also allowed to ob- served as Mr. Ma’s staff assistant from 1997 to tain a bank license. 2000, recalled a 1999 meeting between Mr. Ma Together, analysts say, the licenses were and Zhang Beili, the wife of Mr. Wen. worth a fortune in China’s tightly regulated Mr. Hu said he was not told what transpired marketplace. at the meeting, but he recalled his boss’s reac- “They were one of the few who got to enjoy tion. “Because of that meeting, Chairman Ma these gold-digging benefits,” said Bob Leung, got very excited,” said Mr. Hu, who is now liv- a longtime insurance analyst at UBS in Hong ing in the United States and who has quarreled Kong. with Ping An over 52,000 shares he claimed he By late 2002, Ping An had not simply sur- was owed. vived the downturn, its prospects had begun to Corporate records reviewed by The Times look bright. The company’s restructuring bol- indicate that Mr. Ma held an afternoon meeting stered revenue and profits. In October of that and then dinner with the prime minister’s wife year, one of the world’s biggest banks, HSBC, C M Y K Nxxx,2012-11-25,A,019,Bs-BK,E2

THE NEW YORK TIMES INTERNATIONAL SUNDAY, NOVEMBER 25, 2012 Ø N 19

A Company’s Hidden Shareholders: Friends and Family of Wen Jiabao

In October 2004, the investment company Taihong was one of the largest KEY Investment companies Relatives of Wen Jiabao shareholders of insurance giant Ping An, holding 135 million shares. Taihong In October 2004, 135 million shown in CAPITAL LETTERS; and his wife, or her was itself owned by a series of other investment companies, which were in shares of Ping An Insurance individuals in boldface friends and colleagues turn owned by others. Many of these owners were connected with China’s were owned by Taihong, an prime minister, Wen Jiabao. Records show that Wen family members, and investment vehicle owned by: friends and colleagues of the prime minister's wife effectively controlled at least 88 percent of the shares owned by Taihong.

Share of ownership 28% 25% 25% 12% 10%

Owner XUANDA TIANJIN SHIJI HONGRUI Feng Zhixi HEPING Wife of Wen Owned by Jiabao’s brother Owned by Owned by 33.7 million

Chen Hengmei 48% 32% 20% 90% 10% 50% 27% 23% Number of Mother-in-law of SHENGCHURUI Liu Ping An shares BEIJING Li HESHENG KANG- DONGFANG- Wen Jiabao’s Donsheng effectively TAIHONG Baozhen SHENGYUAN SHIYUAN son, Winston Wen controlled 13.4 million Owned by Owned by Owned by

80% 20% Wang Zhuangli 70% 30% 17% 43% 40% Colleague of DALIAN SHIJIXING Wen Jiabao’s wife Wang He HAICHANG Lan Wen Partly 7.5 million owned by

Duan Weihong Zhang Yuhong Zhang Jianhong Zhang Two relatives obtained stakes in Ping An through Friend of Wen Family friend and colleague Brother of Wen Jiankun Hongrui, beginning in 2005. By 2007, Yang Zhiyun, left, Jiabao’s wife of Wen Jiabao’s brother Jiabao’s wife Brother of the prime minister’s mother, held $120 million worth of 21.2 million 9.1 million 3.3 million Wen Jiabao’s wife Ping An stock; and Yang Quanmei, the father-in-law of 1 million (27% of Shijixing) the prime minister’s son, held $113 million. THE NEW YORK TIMES our losses relating to the investment in Ping An, which would not be helpful for the image of China’s policy of reform and opening to the outside.” Another Big Stake in Ping An, Hidden in a Hong Kong Investment The letter came after months of ag- gressive lobbying on the part of Ping An By DAVID BARBOZA prime minister’s son, Wen Yunsong. Ping An stock at the time of the Hong executives and the two American banks The main connection to Ping An for In mid-2001, moreover, one of Mr. Kong I.P.O. — just over 20 percent of to persuade other high-ranking officials relatives of Wen Jiabao was through Zheng’s investment vehicles bor- Ping An’s shares. in Beijing, including the central bank their stakes in a company based in the rowed about $9 million from a dia- “These several parties were under mond company partly controlled by common control,” said one executive and the insurance regulator, to hold prime minister’s hometown, Tianjin, relatives of the prime minister, and who worked with Mr. Cheng and rela- Ping An together, according to corpo- in northern China. But there was also his wife’s former government col- tives of Mr. Wen, but who asked not to rate documents reviewed by The Times. apparently a Hong Kong connection. leagues in the diamond trade, accord- be named for fear of retribution. “It As early as 1999, executives at Ping One big investor in Ping An was An also began making contact with the ing to regulatory filings. Soon after, was under the surface, like the Higgs Zheng Jianyuan, who former Ping An that vehicle — Baohua — bought boson theory, economic dark matter: relatives of Mr. Wen. executives said worked as a business Hu Kun, a former Ping An employee about 20 million Ping An shares be- It has a gravitational pull, but you associate and an investment manager fore its initial public offering. can’t see it.” who served as Mr. Ma’s staff assistant for Cheng Yu-tung, the Hong Kong bil- from 1997 to 2000, recalled a 1999 meet- Ping An executives declined to A New York Times review of Ping lionaire who controls both the New comment. Cheng Yu-tung, who is now An’s public filings indicates that the ing between Mr. Ma and Zhang Beili, World Development Group and Chow the wife of Mr. Wen. 87, could not be reached for comment. company never publicly disclosed Tai Fook, one of the world’s largest Efforts to reach Mr. Zheng were also that Mr. Cheng or Mr. Zheng con- Mr. Hu said he was not told what jewelry store chains. transpired at the meeting, but he re- unsuccessful. trolled the stakes — or that the vari- Between 2000 and 2004, five compa- called his boss’s reaction. “Because of People familiar with the sale of Ping ous companies they were linked to nies affiliated with Mr. Cheng and his BOBBY YIP/REUTERS that meeting, Chairman Ma got very ex- An shares to associates of Mr. Cheng were closely related. And a search of New World Group acquired 20 per- cited,” said Mr. Hu, who is now living in say that in 1999 a Chow Tai Fook joint Cheng Yu-tung, a Hong Kong bil- Hong Kong records and a visit to cent of Ping An’s stock from the China the United States and who has quar- venture was restructured in the Chi- lionaire. At one time, his compa- Luhe County, in Guangdong Province Merchants Group and other state en- reled with Ping An over 52,000 shares nese city of Wuhan and several other nies owned 20 percent of Ping An. — the county listed as Mr. Zheng’s tities ahead of Ping An’s listing on the he claimed he was owed. investment vehicles were set up in hometown on his identity card — sug- Hong Kong Stock Exchange. At one Corporate records reviewed by The mainland China in order to avoid a gests that Mr. Zheng was in fact a time, all five companies were man- Chinese restriction on foreign owner- capped at 25 percent. Those rules also Hong Kong resident. Times indicate that Mr. Ma held an af- applied to investors from Hong Kong, ternoon meeting and then dinner with aged or controlled by Mr. Zheng. ship. After searching the local govern- who are still considered foreign be- the prime minister’s wife and Li Chu- Corporate and other public records At that point, Goldman Sachs and ment database, police in Luhe County cause Hong Kong is governed sep- nyan, who ran Ping An’s office in Bei- show that the investment vehicles Morgan Stanley owned about 15 per- said no such person existed in the arately. jing, on June 17, 1999. controlled by Mr. Zheng formed nu- cent of Ping An’s shares, and by 2002, county, and that the ID number was It is not known what they discussed, merous business partnerships with the British bank HSBC held 10 per- Using a Chinese government-issued not in their records. And Zheng Chen- but the relationship seemed to flourish. the relatives of Mr. Wen, around the cent. Under rules issued in 1998 by identity card in his name, Mr. Zheng gyu, who compiles family histories in Around the same time, a diamond com- agreedtime of the to Ping pay An $600 investments, million toand acquireChina’s a 10 insurance per- Taihong regulators, owned. total Sowas in June able to2004, control just companiesbefore Ping that Luhe County, said: “I’ve never heard pany partly controlled by the relatives centfinanced stake two in start-ups the company run by from the Pingforeign An. investment Just An’s in Ping Hong An wasKong heldoffering, more thanTaihong one billion held shares 159.8 of of this name.” of Ms. Zhang began occupying office over a year later, regulators approved the com- million shares, or about 3.2 percent of Ping An’s space at the Ping An office tower in Bei- jing, according to records the diamond pany’s application to list and sell shares on the stock, according to public filings. company filed with regulators. Later, a etlyHong accumulating Kong Stock large blocksExchange. of Ping In an interview, Ms. DuanIn an said interview, she tory Ms. documents. Duan said All of she them had were paid listed, shares by Communist Party members start-up co-founded by Wen Yunsong, An stock.While Ping An was preparinghad for paid its about listing 40 centsabout a share 40 centsat cur- a sharealong at with current Ms. Duan, exchange as the rates,owners of and their families. the son of Ms. Zhang and the prime min- rent exchange rates, or a total of $65 Taihong. For instance, the rules barred party ister, won a lucrative technology con- in Hong Kong, a group of investors with close or a total of $65 million, to acquire the shares. million, to acquire the shares. And by 2007, the prime minister’s officials in charge of a state-owned com- tract from Ping An, according to in- Buyingties to Into senior Ping officials An in Beijing, including Wen The price seems to have been a huge and un- The price seems to have been a huge mother, who is now 91, was listed on pany from using their parents, children terviews with former Ping An execu- OnJiabao, Dec. 26, were 2002, Ping quietly An filings accumulating show, and large unusual blocks discount, usual analysts discount, say, analystspublic documentssay, since asHSBC holding had $120 two mil- — or even their children’s spouse’s rela- tives. a companyof Ping runAn stock. by Duan Weihong, a since HSBC had two monthsmonths earlier earlier ac- acquiredlion worth its of10 Ping percent An stock stake through for a tives — to trade stocks of a listed state- Mr. Ma, who is 56 and still runs Ping Wen family friend from the prime min- quired its 10 percent stake for about pair of investment companies linked to owned company. An, declined to comment for this article. about $1.60 a share, according to public filings. ister’s hometown, acquired Ping An $1.60 a share, according to public filings. Taihong. The Times found no indication that Interviews with four senior executives Buying Into Ping An Cosco did not return calls seeking comment. stock through a company called Tai- Cosco did not return calls seeking Ms. Duan, who says she got to know Mr. Wen shared inside information with who worked with Mr. Ma and Mr. Hu at hong. SoonOn after,Dec. the26, relatives2002, Ping of Mr. An filingscomment. show, a For Taihong, itthe was prime a blockbuster minister’s family purchase. in 2000, said family members. the corporate headquarters in Shen- Wen and colleagues of his wife took con- For Taihong, it was a blockbuster pur- that she bought the Ping An shares for zhen during the same period corrob- company run by Duan Weihong, a Wen family By 2007, when the price of Ping An’s stock But there are many unanswered trol of that investment vehicle, the chase. By 2007, when the price of Ping her own personal account. The Wen rel- orate Mr. Hu’s recollections and the friend from the prime minister’s hometown, ac- peaked, the 159 million shares were valued at questions about the relatives’ holdings, records show. An’s stock peaked, the 159 million atives only appear in the Taihong share- content of the documents reviewed by analysts consulted by The Times said, Accordingquired Ping to documents An stock Ping through An filed a companyshares were called valued $3.7 at $3.7 billion billion — — thoughholding by records, 2007 Taihong she said, becausehad al- her The Times concerning Ping An’s lobby- like who might have known about the aheadTaihong. of its Hong Soon Kong after, listing, the Taihong relativesthough of Mr. by 2007 Wen Taihong ready had already significantly sig- company reduced bor itsrowed stake, the according government-is- ing efforts and meetings with the rela- relatives’ purchases and whether any- acquired 77.7 million shares of Ping An nificantly reduced its stake, according sued identity cards of other people — tives of Mr. Wen. and colleagues of his wife took control of that to public filings. one had a legal obligation to disclose from the China Ocean Shipping Compa- to public filings. mistakenly, she said, from relatives of In addition, Li Chunyan, who ran the investment vehicle, the records show. While Taihong was the shareholder of re- that information. ny, a global shipping giant known as While Taihong was the shareholder of the prime minister — to help mask her Executives at Morgan Stanley and Beijing office, confirmed in a telephone Cosco, andAccording 2.2 million moreto documentsshares from Pingrecord, Anthe beneficiariesfiled cord, of the the Ping beneficiaries An own Ping of the An stakePing from An thedeal public. were interview that during that period he had Goldman Sachs say they were unaware Cosco’s Dalian subsidiary. A two-for- deal were cloaked behind more than a “In the end,” Ms. Duan said, “I re- brought Ms. Zhang to meet the Ping An ahead of its Hong Kong listing, Taihong ac- cloaked behind more than a dozen investment of the share purchases and were not in- one stock split doubled the number of dozen investment vehicles controlled by ceived 100 percent of the returns.” volved in the transactions. chairman, Mr. Ma. sharesquired Taihong 77.7 owned. million So inshares June 2004, of Pingthe An relatives from ofthe Mr. Wen,vehicles including controlled two by the relatives of Mr. Wen, The documents and interviews shed China Ocean Shipping Company, a global ship- including two brothers-in-law, a sister-in-law, as The companies also said that a typical just before Ping An’s Hong Kong of- brothers-in-law, a sister-in-law, as well I.P.O. process is unlikely to uncover the no light on whether those meetings fering,ping Taihonggiant known held as 159.8 Cosco, million and 2.2as million several more longtime well colleagues as several and longtimeThe Fallout colleagues and busi- played a role in the decision by govern- ultimate identity of shareholders who shares,shares or about from 3.2 Cosco’spercent of DalianPing An’s subsidiary.business A partners two- of ness his wife,partners Zhang of his Inwife, 2001, Zhang China issued Beili, newaccording regulations are hiding behind layers of investment ment regulators to abandon plans to stock, according to public filings. Beili, according to corporate and regula- that put restrictions on trading in listed split up Ping An. But in April 2002, the for-one stock split doubled the number of shares to corporate and regulatory documents. All of vehicles using unrecognizable names. nation’s top regulators delivered their According to regulations in Hong verdict. With approval of the State Kong and China, publicly listed compa- Council and insurance regulators, Ping nies and their professional partners An began the process of transforming it- who help sell shares to the public are le- self into a financial conglomerate. gally obligated to disclose the identities The company was not only allowed to of only those shareholders controlling a retain property and life insurance li- stake larger than 5 percent. The Times censes, but also licenses that permitted found that at its peak, Taihong, the in- it to operate a brokerage and a trust vestment vehicle tied to the Wen family, company. It was also allowed to obtain a never held more than a 3.2 percent bank license. stake. Together, analysts say, the licenses Another question that remains unan- were worth a fortune in China’s tightly swered is how Taihong was able to buy regulated marketplace. shares of Ping An at a price that ap- “They were one of the few who got to pears to have been highly discounted. enjoy these gold-digging benefits,” said By late 2002, Ping An had already be- Bob Leung, a longtime insurance ana- come a hot I.P.O. prospect following a lyst at UBS in Hong Kong. big investment by HSBC. By late 2002, Ping An had not simply The answers to some of the questions, survived the downturn, its prospects legal experts say, may turn on who was had begun to look bright. The compa- involved in brokering the deal that led ny’s restructuring bolstered revenue to the relatives’ acquiring shares in and profits. In October of that year, one Ping An in the period before the compa- of the world’s biggest banks, HSBC, ny’s public offering in 2004, and wheth- agreed to pay $600 million to acquire a er the deal-makers were seeking to gain 10 percent stake in the company from favors from the regulators. Ping An. Just over a year later, reg- “The key questions are: why were ulators approved the company’s appli- these people chosen, and on what terms cation to list and sell shares on the Hong did they get the shares?” said Jerome Kong Stock Exchange. A. Cohen, a professor at New York Uni- While Ping An was preparing for its versity Law School and an expert on listing in Hong Kong, a group of invest- China’s legal system. “Obviously, every- ors with close ties to senior officials in JIM WILSON/THE NEW YORK TIMES one would like to get in before a hot Beijing, including Wen Jiabao, were qui- Hu Kun is a former Ping An employee who served as staff assistant to Ma Mingzhe, the company chairman. I.P.O.” them were listed, along with Ms. Duan, as the Executives at Morgan Stanley and Gold- owners of Taihong. man Sachs say they were unaware of the share And by 2007, the prime minister’s mother, purchases and were not involved in the transac- who is now 91, was listed on public documents tions. as holding $120 million worth of Ping An stock The companies also said that a typical I.P.O. through a pair of investment companies linked process is unlikely to uncover the ultimate iden- to Taihong. tity of shareholders who are hiding behind lay- Ms. Duan, who says she got to know the ers of investment vehicles using unrecognizable prime minister’s family in 2000, said that she names. bought the Ping An shares for her own personal According to regulations in Hong Kong account. The Wen relatives only appear in the and China, publicly listed companies and their Taihong shareholding records, she said, because professional partners who help sell shares to her company borrowed the government-issued the public are legally obligated to disclose the identity cards of other people — mistakenly, she identities of only those shareholders controlling said, from relatives of the prime minister — to a stake larger than 5 percent. The Times found help mask her own Ping An stake from the pub- that at its peak, Taihong, the investment vehicle lic. tied to the Wen family, never held more than a “In the end,” Ms. Duan said, “I received 100 3.2 percent stake. percent of the returns.” Another question that remains unanswered is how Taihong was able to buy shares of Ping The Fallout An at a price that appears to have been highly In 2001, China issued new regulations that discounted. By late 2002, Ping An had already put restrictions on trading in listed shares by become a hot I.P.O. prospect following a big in- Communist Party members and their families. vestment by HSBC. For instance, the rules barred party officials The answers to some of the questions, le- in charge of a state-owned company from us- gal experts say, may turn on who was involved ing their parents, children — or even their chil- in brokering the deal that led to the relatives’ dren’s spouse’s relatives — to trade stocks of a acquiring shares in Ping An in the period be- listed state-owned company. fore the company’s public offering in 2004, and The Times found no indication that Mr. Wen whether the deal-makers were seeking to gain shared inside information with family members. favors from the regulators. But there are many unanswered questions “The key questions are: why were these about the relatives’ holdings, analysts consulted people chosen, and on what terms did they get by The Times said, like who might have known the shares?” said Jerome A. Cohen, a professor about the relatives’ purchases and whether at New York University Law School and an ex- anyone had a legal obligation to disclose that in- pert on China’s legal system. “Obviously, every- formation. one would like to get in before a hot I.P.O.” n CCMMYYKK Nxxx,2012-12-31,A,001,Bs-BK,E3Nxxx,2012-12-31,A,001,Bs-BK,E3

LateLate Edition Edition Today,Today,sunsun giving giving way way to toclouds, clouds, highhigh 38. 38.Tonight, Tonight,mostlymostly cloudy, cloudy, a a snowsnow shower, shower, low low 34. 34.Tomorrow, Tomorrow, mostlymostly cloudy, cloudy, a sprinkle a sprinkle or flurry,or flurry, highhigh 38. 38. Weather Weather map, map, Page Page A20. A20.

VOL. CLXII . . No. 56,002 © 2012 The New York Times NEW YORK, MONDAY, DECEMBER 31, 2012 $2.50 VOL. CLXII . . No. 56,002 © 2012 The New York Times NEW YORK, MONDAY, DECEMBER 31, 2012 $2.50 CONGRESSIONALCONGRESSIONAL MEMO MEMO SEESAWINGSEESAWING TALKS TALKS A Showdown A Showdown YIELDYIELD NO NO ACCORD ACCORD LongLong Foreseen Foreseen ONON FISCAL FISCAL CRISIS CRISIS Short-TermShort-Term Thinking Thinking Hems In Lawmakers Hems In Lawmakers VICEVICE PRESIDENT PRESIDENT STEPS STEPS IN IN

By JENNIFER STEINHAUER By JENNIFER STEINHAUER Fits and Starts as Clock WASHINGTONWASHINGTON — The— The titanic titanic Fits and Starts as Clock strugglestruggle over over how how to reachto reach a a TicksTicks — — Lawmakers Lawmakers broadbroad Congressional Congressional tax tax agree- agree- mentment is not is not just just the the latest latest parti- parti- to toReturn Return Today Today sansan showdown, showdown, but but rather rather the the culminationculmination of twoof two years years of esca-of esca- latinglating fiscal fiscal confrontations, confrontations, each each By JONATHAN WEISMAN building on the other in its grav- By JONATHAN WEISMAN building on the other in its grav- WASHINGTON — Senate ity and consequences. On Sun- WASHINGTON — Senate ity and consequences. On Sun- leaders on Sunday failed to day, lawmakers could not seem leaders on Sunday failed to day, lawmakers could not seem produce a fiscal deal with just to findto find one one final final way way out. out. produce a fiscal deal with just hourshours to togo go before before large large tax tax in- in- FromFrom the the first first fight fight over over a a creasescreases and and spending spending cuts cuts were were short-termshort-term spending spending agreement agreement to to begin begin taking taking effect effect on on New New to keepto keep the the government government open open in in early 2011 to the later tangle over Year’sYear’s Day, Day, despite despite a round a round of of early 2011 to the later tangle over volatile negotiations over the thethe debt debt ceiling ceiling to theto the failure failure of of volatile negotiations over the last year’s special budget com- weekendweekend and and an anattempt attempt by byVice Vice last year’s special budget com- President Joseph R. Biden Jr. to mitteemittee and and the the resulting resulting automat- automat-President Joseph R. Biden Jr. to ic spending cuts that now loom intervene.intervene. ic spending cuts that now loom In seesaw negotiations, the two alongalong with with tax tax increases, increases, the the so- so- In seesaw negotiations, the two called fiscal cliff was built, slab bysidessides got got closer closer on onthe the central central is- is- called fiscal cliff was built, slab by sue of how to define the wealthy partisanpartisan slab, slab, to whereto where it now it now sue of how to define the wealthy T. J. KIRKPATRICK FOR THE NEW YORK TIMES threatens the nation’s finances. taxpayers who would be required T. J. KIRKPATRICK FOR THE NEW YORK TIMES threatens the nation’s finances. taxpayers who would be required “It looks awful,” Senator Richard J. Durbin of Illinois, the second-ranking Democrat, said after tense negotiations on Sunday. “Something has gone terribly to to pay pay more more once once the the Bush-era Bush-era “It looks awful,” Senator Richard J. Durbin of Illinois, the second-ranking Democrat, said after tense negotiations on Sunday. “Something has gone terribly tax cuts expire. wrong,”wrong,” said said Senator Senator Joe Joe Man- Man- tax cuts expire. chin III, Democrat of West Vir- ButBut that that progress progress was was over- over- chin III, Democrat of West Vir- shadowed by gamesmanship. Af- ginia,ginia, “when “when the the biggest biggest threat threat to to shadowed by gamesmanship. Af- our American economy is the terter Republicans Republicans demanded demanded that that Deal Expected Troubled Past for Suspect in Fatal Subway Pushour American economy is the any deal must include a new way Deal Expected Troubled Past for Suspect in Fatal Subway Push AmericanAmerican Congress.” Congress.” any deal must include a new way Years of increased spending onof calculatingof calculating inflation inflation that that would would caseworkers visited her family about the safeguards in a patch- Years of increased spending on caseworkers visited her family about the safeguards in a patch- everything from wars to expand- meanmean smaller smaller increases increases in in pay- pay- OnOn Past Past Abuses Abuses home in Queens to provide fur- work private and public mentaleverything from wars to expand- home in Queens to provide fur- work private and public mental ed entitlement programs — com- mentsments to to beneficiaries beneficiaries of of pro- pro- By ByMARC MARC SANTORA SANTORA health system that is supposed toed entitlement programs — com- therther help. help. She She was was also also arrested arrestedhealth system that is supposed to bined with protracted, stubborn gramsgrams like like Social Social Security, Security, Demo- Demo- and ANEMONA HARTOCOLLIS allow mentally ill people to live asbined with protracted, stubborn InIn Home Home Loans Loans and ANEMONA HARTOCOLLIS at leastat least three three times, times, according according to toallow mentally ill people to live as unemployment and a nation of crats halted the negotiations for freely as possible in the commu-unemployment and a nation of crats halted the negotiations for LongLong before before Erika Erika Menendez Menendezthethe police, police, twice twice after after violent violent con- con-freely as possible in the commu- workers whose earning power muchmuch of theof the day. day. was charged with pushing a frontations. nity while protecting them andworkers whose earning power The Republican leader in the was charged with pushing a frontations. nity while protecting them and andand home home values values have have plummet- plummet- The Republican leader in the stranger to his death under an Ms. Menendez’s years of inner the public. Senate, Mitch McConnell, made By ByJESSICA JESSICA SILVER-GREENBERG SILVER-GREENBERGstranger to his death under an Ms. Menendez’s years of inner the public. ed edin recentin recent years years — have— have per- per- Senate, Mitch McConnell, made oncoming train at a Queens ele- A similar attack more than a an emergency call to Mr. Biden in Banking regulators are close tooncoming train at a Queens ele- andand outer outer turmoil turmoil culminated culminated in in A similar attack more than a suadedsuaded lawmakers lawmakers in bothin both par- par- an emergency call to Mr. Biden in Banking regulators are close to vated station, she had years of the deadly assault on an unsus-decadedecade ago ago led led to ato law a law aimed aimed at at ties that fiscal policy is the most hopes of restarting negotiations, a $10 billion settlement with 14vated station, she had years of the deadly assault on an unsus- forcing mentally ill people with aties that fiscal policy is the most hopes of restarting negotiations, a $10 billion settlement with 14 contact with New York City’s pecting man who was waiting forforcing mentally ill people with a pressing domestic concern. and the White House sent the banks that would end the govern-contact with New York City’s pecting man who was waiting for history of violence to undergopressing domestic concern. and the White House sent the banks that would end the govern- mental health and law enforce- a train on Thursday. Beyond stir-history of violence to undergo But a fundamental ideological president’s chief legislative nego- ment’s efforts to hold lenders re-mental health and law enforce- a train on Thursday. Beyond stir- treatment, but it is widely ac- But a fundamental ideological president’s chief legislative nego- ment’s efforts to hold lenders re- treatment, but it is widely ac- chasm between the majority of tiator to the Capitol to meet with sponsible for foreclosure abusesmentment establishments. establishments. She She was wasringring fear fear among among riders riders on oncrowd- crowd- knowledged to cover only a smallchasm between the majority of tiator to the Capitol to meet with sponsible for foreclosure abuses knowledged to cover only a small lawmakers and an empowered Senate Democrats. Soon after, like faulty paperwork and exces-treatedtreated by by the the psychiatric psychiatric staffs staffsed ed platforms platforms across across the the city, city, the the portion of those who need help. lawmakers and an empowered Senate Democrats. Soon after, like faulty paperwork and exces- portion of those who need help. group of Congressional Republi- Republicans withdrew their de- sive fees that may have led to of at least two city hospitals, and attack also raised new questions D. J. Jaffe, the executive direc-group of Congressional Republi- Republicans withdrew their de- sive fees that may have led to of at least two city hospitals, and attack also raised new questions D. J. Jaffe, the executive direc- cans — fueled by some Tea Party mand and discussions resumed, evictions, according to people tor of the Mental Illness Policycans — fueled by some Tea Party mand and discussions resumed, evictions, according to people tor of the Mental Illness Policy victories in both chambers in but little progress was made. with knowledge of the discus- Organization, an advocacy group,victories in both chambers in but little progress was made. with knowledge of the discus- Organization, an advocacy group, 2010 — has made it more difficult Lawmakers will be back on sions. said that thousands of troubled2010 — has made it more difficult Lawmakers will be back on sions. said that thousands of troubled than ever to reach fiscal and Monday. Senator Harry Reid of Under the settlement, a signif- individuals with violent historiesthan ever to reach fiscal and Monday. Senator Harry Reid of Under the settlement, a signif- individuals with violent histories budgetary compromises. Nevada, the majority leader, said icant amount of the money, $3.75 were released from mental healthbudgetary compromises. Nevada, the majority leader, said icant amount of the money, $3.75 were released from mental health the Senate would return at 11 a.m. billion, would go to people who facilities, and that beyond requir- EachEach fight fight has has left left Democrats Democrats the Senate would return at 11 a.m. billion, would go to people who facilities, and that beyond requir- and Republicans both more dis- Monday and then left the Capitol havehave already already lost lost their their homes, homes, ing that they have a home to go toand Republicans both more dis- Monday and then left the Capitol making it potentially more gener- ing that they have a home to go to trustful and wary of working to- just after 6 p.m. making it potentially more gener- andand an an outpatient outpatient care care plan plan in intrustful and wary of working to- just after 6 p.m. ous to former homeowners than a gether, each in search of a voter “Talk to Joe Biden and McCon- ous to former homeowners than a place,place, there there was was little little oversight oversight of ofgether, each in search of a voter “Talk to Joe Biden and McCon- broad-reaching pact in February mandate to push its vision to the nell,” Mr. Reid told reporters broad-reaching pact in February theirtheir activities. activities. mandate to push its vision to the nell,” Mr. Reid told reporters between state attorneys general fore. In some ways, that dynamic when asked if negotiations were between state attorneys general “No“No one one monitors monitors if they if they are arefore. In some ways, that dynamic when asked if negotiations were and five large banks. That set has come full circle. continuing. and five large banks. That set takingtaking their their medication,” medication,” Mr. Mr.has come full circle. continuing. aside $1.5 billion in cash relief for In 2011, right after their big In the balance are more than a aside $1.5 billion in cash relief for JaffeJaffe said. said. “Or “Or follows follows up upto seeto see if if In 2011, right after their big In the balance are more than a Americans. midterm victory, Republicans half-trillion dollars in tax in- Americans. theythey are are a danger a danger to themselvesto themselvesmidterm victory, Republicans half-trillion dollars in tax in- Most of the relief in both agree- were able to push Democrats out creases on virtually every work- Most of the relief in both agree- or others.”or others.” were able to push Democrats out creases on virtually every work- ments is meant for people who of their comfort zone on spend- ing American and across-the- ments is meant for people who TheThe case case of Ms.of Ms. Menendez, Menendez, 31, 31,of their comfort zone on spend- ing American and across-the- are struggling to stay in their ing, using short-term measures board spending cuts that are are struggling to stay in their putsputs renewed renewed attention attention on ona men- a men-ing, using short-term measures board spending cuts that are homes and need the banks to re- to keep the government open and scheduled to begin Tuesday. Tak- homes and need the banks to re- tal tal health health system system that that is a is loose a looseto keep the government open and scheduled to begin Tuesday. Tak- duce their payments or lower the en together, they threaten to duce their payments or lower the amalgamamalgam of hospitals,of hospitals, supported supported ContinuedContinued on onPage Page A12 A12 en together, they threaten to amount of principal they owe. push the economy back into re- amount of principal they owe. housing,housing, shelters shelters and and other other advo- advo- push the economy back into re- cession. TheThe $10 $10 billion billion pact pact would would be be cacycacy and and support support groups, groups, in in cession. the latest in a series of settle- which mentally ill people often “It looks awful,” said Senator C M Y K the latest inNxxx,2012-12-31,A,001,Bs-BK,E3 a series of settle- which mentally ill people often ECONOMIC DRAG A rise in the So- “It looks awful,” said Senator ments that regulators and law en- bounce from one to the other andECONOMIC DRAG A rise in the So- Richard J. Durbin of Illinois, the ments that regulators and law en- bounce from one to the other and cial Security payroll tax is expect- Richard J. Durbin of Illinois, the forcement officials have reached BRETT CARLSEN FOR THE NEW YORK TIMES ultimately fall through thecial Security payroll tax is expect- second-ranking Democrat. “I’m forcement officials have reached BRETT CARLSEN FOR THE NEW YORK TIMES ultimately fall through the ed to slow the economy. PAGE B1 second-ranking Democrat. “I’m withwith banks banks to holdto hold them them account- account- Late Edition cracks.cracks. It isIt notis not known known precisely preciselyed to slow the economy. PAGE B1 suresure the the American American people people are are Farewell to a Brother FirefighterToday, sun giving way to clouds, able for their role in the 2008 fi-Farewell to a Brother Firefighterhigh 38. Tonight, mostly cloudy, a where she fit in. INSURING CASH Government in- saying, with so much at stake able for their role in the 2008 fi- snow shower, low 34. Tomorrow, where she fit in. INSURING CASH Government in- saying, with so much at stake nancial crisis that sent the hous- A fire truck took the body of Michaelmostly cloudy, a sprinkle J. Chiapperini, or flurry, shot in an City officials said it would be surance on deposits will fall back why are they waiting so late to nancial crisis that sent the hous- A fire truck took the body of Michaelhigh 38. Weather J. map,Chiapperini, Page A20. shot in an City officials said it would be surance on deposits will fall back why are they waiting so late to to amounts of $250,000. PAGE B1 ContinuedContinued on onPage Page B3 B3 ambush,ambush, to histo his funeral funeral in Webster,in Webster, N.Y., N.Y., on on Sunday. Sunday. Page Page A13. A13. ContinuedContinued on onPage Page A16 A16 to amounts of $250,000. PAGE B1 ContinuedContinued on onPage Page A12 A12 VOL. CLXII . . No. 56,002 © 2012 The New York Times NEW YORK, MONDAY, DECEMBER 31, 2012 $2.50 CONGRESSIONAL MEMO SEESAWING TALKS A Showdown YIELD NO ACCORD ChineseChinese Regulator’s Regulator’s Relatives RelativesLong Foreseen IndianWomenIndianWomen March: March: ‘That ‘That Girl Girl Could Could Have Have Been Been Any Any One One of of Us’ Us’ ON FISCAL CRISIS bus two weeks ago. Short-Term Thinking bus two weeks ago. Profited From Stake inHems Insurer In Lawmakers In her story and its brutal end- Profited From Stake in Insurer VICE PRESIDENTBy ByHEATHER STEPS HEATHER IN TIMMONS TIMMONS In her story and its brutal end- and SRUTHI GOTTIPATI ing,ing, many many women women in thein the world’s world’s By JENNIFER STEINHAUER and SRUTHI GOTTIPATI Fits and Starts as Clock largest democracy say they see By DAVID BARBOZA WASHINGTON — The titanic largest democracy say they see struggle over how to reach a TicksNEW —NEW Lawmakers DELHI DELHI — — Neha Neha Kaul Kaul themselves. By ByDAVID DAVID BARBOZA BARBOZA broad Congressional tax agree- themselves. ment is not just the latest parti- MehratoMehra Return says Today says she she was was only only 7 years 7 years “That girl could have been any SHANGHAI — RelativesSHANGHAI of a pre-I.P.O.tives illustrate properties.” santhat showdown, the Hebut riches rather was the ex-using the abbre- “That girl could have been any SHANGHAI — Relatives of a tives illustrate thatculmination the ofriches two years of ex- esca- oldold the the first first time time she she was was sexu- sexu- one of us,” said Sangeetha Saini, elatives of a top Chinese regulator viationtend beyond for China’s thelating fiscal families official confrontations, ofname, each the Bythe JONATHAN People’s WEISMAN one of us,” said Sangeetha Saini, top Chinese regulator profited building on the other in its grav- ally harassed. She was walking to top Chinese regulator profited tend beyond the families of the WASHINGTON — Senate ity and consequences. On Sun- ally harassed. She was walking to 44, who took her two teenage profited enormouslyenormously from from thethe purchase of Republicpolitical of elites China. to the families ofleaders on Sunday failed to 44, who took her two teenage enormously from the purchase of political elites to day, the lawmakers families could not seem of a dance class in an affluent neigh- to find one final way out. producea dance a fiscal class deal with in just an affluent neigh- daughters to a candle-filled dem- regulators with control of thehours to go before large tax in- of shares inshares a once-struggling in a once-struggling insurance insur- The companyFrom that the first bought fight over a the Pingborhood An stake of New Delhi when adaughters to a candle-filled dem- R shares in a once-struggling insur- regulators with control of the creases and spending cuts were short-term spending agreement borhood of New Delhi when a onstration on Sunday in Delhi. ance company that is now one of country’s most important busi-to begin taking effect on New onstration on Sunday in Delhi. company that anceis now company one of China’sthat is now biggest one offi- country’swas controlled most importanttoby keep a the group government busi- openof ininvestmentman confrontedfirms, her and began early 2011 to the later tangle over Year’sman Day, despiteconfronted a round of her and began Women in India “face harass- China’s biggest financial power- ness and financial levers. Mr.volatile negotiations over the Women in India “face harass- nancial powerhouses, according to interviews nessincluding and financialtwo setthe debt up ceiling levers. byto the failure Mr. Mr. of Dai’s openlyson-in-law, masturbating. China’s biggest financial power- last year’s special budget com- weekendopenly and an masturbating.attempt by Vice ment in public spaces, streets, on Dai, an economist, has since leftPresident Joseph R. Biden Jr. to and a review of regulatoryhouses, according filings. to interviewsDai,Che an Feng, economist, as wellmittee hasas and otherthe since resulting firms automat- left associatedThat withepisode was far from thement in public spaces, streets, on houses, according to interviews ic spending cuts that now loom intervene.That episode was far from the buses,” she said. “We can only and a review of regulatory filings. his post with the central bankIn seesaw negotiations, the two The regulator,and aDai review Xianglong, of regulatory was the filings. head hisMr. post Che’s with relatives thealong centralwith and tax increases, business bank the so- associates,last. Years the of verbal and physicalbuses,” she said. “We can only and now managescalled fiscal the cliff was country’s built, slab by sideslast. got closer Years on the centralof verbal is- and physical tackle this by becoming Durga,” The regulator, Dai Xianglong,and now managespartisan the slab, country’s to where it now sue of howsexual to define the affronts wealthy left Ms. Mehra,tackle this by becoming Durga,” of China’s centralThe bank regulator, and also Dai had Xianglong, oversight T.regulatory J. KIRKPATRICK FOR THE NEW YORK filings TIMES show. taxpayers who would be required $150 billion socialthreatens security the nation’s finances. fund,sexual affronts left Ms. Mehra, she added, referring to the fe- “It looks awful,” Senator Richard J. Durbinwas of Illinois, the the head second-ranking of China’s Democrat, said central after tense $150negotiations billion on Sunday. social “Something security has gone fund, terribly to pay now more once 29, the Bush-era filled with what she de-she added, referring to the fe- of the insurancewas industry the head in 2002, of China’s when centrala com- The companwrong,”y, Dinghe said Senator Joe VMan-enturtaxnowe cuts Capital, expire. 29, filled got with what she de- male Hindu god who slays a de- bank and also had oversight of one of the world’schin III, Democrat biggest of West Vir- in-But thatscribed progress wasas over-“impotent rage.” male Hindu god who slays a de- bank and also had oversight of one of the world’s biggest in- shadowed by gamesmanship. Af- pany his relatives helped control bought a big thevestment shares funds.for anginia, extremely“when the biggest threat good to scribed price, theas “impotent re- rage.” mon. the insurance industry in 2002,vestment funds. our American economy is the ter RepublicansLast demanded week, that she and thousandsmon. Dealstake Expected in Ping theTroubledAn insuranceInsurance Past industryforthat Suspect years in 2002,inlater Fatal Subway Push American Congress.” any dealLast must include week, a new way she and thousands cordsHow show, much paying the relatives a small madefractionof calculating of inflation what that woulda Indian women have made im- when a company his relatives How much the relativesYears of increased spending made on of Indian women like her poured Indian women have made im- On Past Abuses when a companycaseworkers his relatives visited her family about the safeguards in a patch- everything from wars to expand- meanof smallerIndian increases women in pay- like her poured came to be worth billions of dollars.home in T Queenshe insur to provideer fur- worklarge privatein the andBritish deal public mental is bank not known, had paid but perana- mentsshare to beneficiaries just two of pro- pressive gains in recent years: helpedBy MARC SANTORA control bought a big stake ed entitlement programs — com- that anger into public demonstra-pressive gains in recent years: helped control boughtther help. a She big was alsostake arrested healthin the system deal that is supposed is not to known, but ana- grams like Social Security, Demo- and ANEMONA HARTOCOLLIS bined with protracted, stubborn that anger into public demonstra- maternal mortality rates have Inwas Home drawing Loans newin investors Ping An Insuranceaheadat least threeof times,a that public according years to allowmonths mentallylysts ill people say earlier. to thelive as activityunemployment The company and raises a nation of fur- paidcrats halted tions,$55 the million negotiations reacting for to news of thematernal mortality rates have inLong Ping before ErikaAn Menendez Insurancethe police,that twice after years violent con- freelylysts as possible say in the commu- activityworkers whose raises earning power fur- much of the day. nity while protecting them and tions, reacting to news of the dropped, literacy rates and edu- stock offering wasafter later charged averting withcame pushing to ainsolvencybefrontations. worth billions a few of forther its Ping doubts An about sharesand home values whether on have Dec. plummet- the26, The2002. Republicangang By rape leader 2007, in of the another young wom-dropped, literacy rates and edu- By JESSICA SILVER-GREENBERG laterstranger tocame his death to under be an worthMs. Menendez’s billions years of of inner thether public. doubts abouted in recent whether years — have theper- Senate,gang Mitch rape McConnell, of madeanother young wom- A similarcapital attack more markets than a are sufficientlyan emergency call to Mr. Biden in cation levels have risen, and mil- Bankingyears regulators earlier. are close to oncomingdollars. train at a QueensThe ele-insurerand outer was turmoil culminateddrawing in the last time thesuaded value lawmakers inof both the par- investmentan who was had moved to the citycation levels have risen, and mil- dollars.vated station, she The had yearsinsurer of the deadlywas assault drawing on an unsus- decadecapital ago led to markets a law aimed at ties are that fiscal sufficiently policy is the most hopes of restarting negotiations, a $10 billion settlement with 14 forcing mentally ill people with a an who had moved to the city contact with New York City’s pecting man who was waiting for regulated in China.pressing domestic concern. and the White House sent the lions of women have joined the banks that wouldWith end the govern-growingnew attention investors on ahead the of wealth a public historymade of violence public, to undergo the shares were worth from$3.1 billion. a small village, with a newlions of women have joined the newmental health investors and law enforce- aheada train on of Thursday. a public Beyond stir- regulated in China.But a fundamental ideological president’s chief legislative nego- ment’s efforts to hold lenders re- treatment, but it is widely ac- from a small village, with a new Nicholas C. Howson,chasm between the an majority expert of tiator to the Capitol to meet with professional classes. But the sponsible for foreclosure abuses mentstock establishments. offering She was ring after fear among averting riders on crowd- in-knowledged to cover only a small life in front of her. amassed by families of the politically powerful NicholasIn its C.investigation, Howson,lawmakers andan an empoweredexpertThe NewSenate York Democrats. T imes Soon after, professional classes. But the like faulty paperwork and exces- stocktreated by the offering psychiatric staffs aftered platforms averting across the city, in- the portion of those who need help. life in front of her. in Chinese securitiesgroup of Congressional law Republi- at theRepublicans withdrew their de- women at the heart of the protest sive fees that may have led to of at solvencyleast two city hospitals, a few and yearsattack also raisedearlier. new questions D. J. Jaffe, the executive direc- That woman, a 23-year-old in China, the investments of Mr. Dai’s relatives infound Chinese no indication securitiescans — fueled that law by some Mr. at Tea theDai Party hadmand andbeen discussions aware resumed, women at the heart of the protest evictions, according to people solvency a few years earlier. tor of the Mental Illness Policy That woman, a 23-year-old University ofvictories Michigan in both chambers in Lawbut little progress was made. movement say it was born of with knowledge of the discus- With growing attention on theOrganization, an advocacy group, physiotherapy student, died Sat- illustrate that the riches extend beyond the fam- Universityof his relatives’ of Michigan2010 activities, — has made it more Law difficultor thatLawmakers any law will be had back on movement say it was born of sions. With growing attention on the said that thousands of troubled physiotherapy student, died Sat- RAVEENDRAN/AGENCE FRANCE-PRESSE — GETTY IMAGES School, said: “Whilethan ever to reachnot fiscal per and se il-Monday. Senator Harry Reid of their outraged realization that no Under the settlement, a signif- wealth amassed by families ofindividuals with violent histories urday from internal injuries in- RAVEENDRAN/AGENCE FRANCE-PRESSE — GETTY IMAGES School, said: “Whilebudgetary not compromises. per se il- Nevada, the majority leader, said their outraged realization that no icant iliesamount ofof the themoney, political $3.75 wealth elites amassed to the families by families of regu of- werebeen released frombroken. mental health But the relatives appearedurday to from have internal injuries in- the Senate would return at 11 a.m. billion, would go to people who the politically powerful in China,facilities,legal and that or beyond even requir- evidenceEach fight has leftof Democrats corrup- matter how accomplished they The police patrolled a New Delhi rally on Sunday after the cre- legal or even evidence of corrup- Mondayflicted and then left the with Capitol a metal rod duringmatter how accomplished they have lators already lost with their homes, controlthe politically of the country’s powerful most in China,impor- ing thatmade they have a a homefortune to go to andby Republicans investing both more dis-in financialflicted withservic a- metal rod during The police patrolled a New Delhi rally on Sunday after the cre- making it potentially more gener- the investments of Mr. Dai’s rela-and an outpatientContinued care plan in trustful on and Page wary of working A3 to- just afterthe 6 p.m. rape, which took place on a Continued on Page A6 mation of a woman whose rape prompted widespread protests. ous totant former homeownersbusiness than a andthe investments financial levers. of Mr. Mr. Dai’s Dai, rela- an place,es there companies wasContinued little oversight of onovergether, Page each which in search A3 of aMr. voter Daithe“Talk had to rape,Joe Bidenregula and which McCon-- took place on a Continued on Page A6 mation of a woman whose rape prompted widespread protests. broad-reaching pact in February their activities. mandate to push its vision to the nell,” Mr. Reid told reporters betweeneconomist, state attorneys general has since left his post with the cen- “Notory one monitors authority. if they are fore. In some ways, that dynamic when asked if negotiations were and five large banks. That set taking their medication,” Mr. has come full circle. continuing. aside $1.5 billion in cash relief for Jaffe said. “Or follows up to see if In 2011, right after their big In the balance are more than a Americans.tral bank and now manages the country’s $150 they are a dangerIn toanother themselves midterm instance, victory, Republicans in Novemberhalf-trillion dollars 2002, in tax in- Most of the relief in both agree- INTERNATIONAL A4-9 or others.” NATIONALwere able A10-12to push Democrats out creases on virtually every work- NEW YORK A13-16 SPORTSMONDAY D1-8 BUSINESS DAY B1-6 mentsbillion is meant for social people who securityINTERNATIONAL fund, one A4-9of the world’s TheDinghe case of Ms.NATIONAL Menendez, acquired 31, of their A10-12a comfortbig zonestake on spend- in Haitonging American Securi and across-the-- NEW YORK A13-16 SPORTSMONDAY D1-8 BUSINESS DAY B1-6 are struggling to stay in their puts renewed attention on a men- ing, using short-term measures board spending cuts that are homesbiggest and need the banksinvestment to re- funds. tal healthties, system a thatbrokerageClinton is a loose to keep firmTreated the government that open foralso and Blood scheduledfell under to begin Clot Tuesday. Mr. Tak- duce their payments or lower the Israel Eases Curbs on Gazaamalgam of hospitals,Clinton supported TreatedContinued on Page for A12 Blooden together, Clot they threaten to Day Labor Wanted After Storm Giants Win, but Miss Playoffs Maxim’s Military Focus amount of principalHow they muchowe. Israel the relatives Eases madeCurbs in onthe Gazadeal is housing,Dai’s shelters jurisdiction, and other advo- according to pushthe the brokerage economy back into re- Day Labor Wanted After Storm Giants Win, but Miss Playoffs Maxim’s Military Focus The $10 billion pact would be For the first time in five years, Israelcacy al- and support groups, in Secretarycession. of State Hurricane Sandy has been a boon for Eli Manning threw five touchdown Maxim, a magazine featuring adoles- the latest in a series of settle- which mentally ill people often “It looks awful,” said Senator For the first time in five years, Israel al- ECONOMIC DRAG A riseSecretary in the So- of State Hurricane Sandy has been a boon for Eli Manning threw five touchdown Maxim, a magazine featuring adoles- mentsnot that regulators known, and law en-but analysts say the activity raises bouncefirm’s from one Shanghaito the other and prospectus. Richard J. Durbin of Illinois, the cial Security payroll tax is expect- day laborers in the New York region as passes and the Giants, fighting for a cent humor and plenty of scantily clad forcement officials have reached lowed truckloads ofBRETT buildingCARLSEN FOR THE NEW YORKmaterials TIMES ultimately fall through the Hillarysecond-ranking Rodham Democrat. “I’m further doubtslowed about truckloads whether ofthe building capital materials mar- By 2007, justed toafter slow the economy.Haitong’sHillary PAGE B1 publicRodham listing in day laborers in the New York region as passes and the Giants, fighting for a cent humor and plenty of scantily clad with banks to hold them account- Farewell to a Brother Firefighter cracks. It is not known precisely Clintonsure thehas American been people are residents seek help to rebuild. PAGE A13 playoff spot, beat the Eagles, 42-7. But actresses, has become for today’s Army able for their role in the 2008 fi- into Gaza for private-sector use. Thewhere she fit in. INSURING CASH Government in- saying, with so much at stake PAGE A13 nancialkets crisis thatare sent sufficiently the hous- into Gaza regulated for private-sector in China. use. The CityShanghai, officials said it would those be shares wereClinton worth whyhas areabout been they waiting $1 sobil late- toresidents seek help to rebuild. playoff spot, beat the Eagles, 42-7. But actresses, has become for today’s Army A fire truck took the body of Michael J. Chiapperini, shot in an surance on deposits will fall hospitalizedback with a the result was rendered meaningless what Esquire was to soldiers in World ContinuedNicholas on Page B3 C.moveambush, Howson,move to was his funeralwas one an inone Webster,of expert the of N.Y.,the first on firstin Sunday. tangible Chinese tangible Page A13. con- con-lion,Continued according on Page A16 toto amounts public of $250,000. filings.hospitalized PAGE B1 LaterContinued with, between on Page a A12 the result was rendered meaningless what Esquire was to soldiers in World blood clot stem- when the Bears beat the Lions. PAGE D1 War II and Playboy was during the Viet- cessions under a cease-fire deal that blood clot stem- when the Bears beat the Lions. PAGE D1 War II and Playboy was during the Viet- securities lawcessions at the underUniversity a cease-fire of Michigan deal that 2007 and 2010, Mr. Dai’s wife, Ke Yongzhen, was ARTSARTS C1-8 C1-8 Chinese Regulator’swas Relatives reached afterIndianWomen eight days of inten- March: ‘That Girl Could Haveming Beenming from Anyfrom a con- One a con- of Us’ namnam War. War. It is It also is also among among the the raciest raciest Law School, said:was reached“While afternot per eight se days illegal of inten- or chairwoman on Haitong’s boardcussion of supervisors. she suf- magazines permitted at military ex- sive fighting in November. PAGEbus two A4weeks ago. cussion she suf- Off With Her Hair! magazines permitted at military ex- Profitedeven evidence From Stake siveof corruption, fighting in Insurer in Novtheseember. transactions PAGE A4In her storyA and spokesman its brutal end- for Mr. Dai and the National Off With Her Hair! By HEATHER TIMMONS fered this month. changes in combat zones. PAGE B1 and SRUTHI GOTTIPATI ing, many women in the world’s fered this month. The soprano Elza van den Heever de- changes in combat zones. PAGE B1 feed into a problematic perception that is wide- largestSocial democracy Security say they see Fund did not return phone calls The soprano Elza van den Heever de- NEW DELHI — Neha Kaul PAGE A11 By DAVID BARBOZA themselves. PAGE A11 cided to shave her head to play Eliza- Mehra says she was only 7 years “That girl could have been any SHANGHAIspread — Relatives in the of a tivesP.R.C.: OBITUARIESillustrate that the the riches relatives ex- A17 of China’s seeking comment. A spokeswoman for Mr. Che, cided to shave her head to play Eliza- OBITUARIES A17 old the first time she was sexu- one of us,” said Sangeetha Saini, top Chinese regulator profited tend beyond the families of the ally harassed. She was walking to beth I in the production of “Maria Stuar- EDITORIAL, OP-ED A18-19 enormouslyhighest from the purchaseofficials of political are elites given to the families privileged of access to 44, the who took son-in-law, her two teenage denied by e-mail that he had beth I in the production of “Maria Stuar- EDITORIAL, OP-ED A18-19 a dance class in an affluent neigh- daughters to a candle-filled dem- shares in a once-struggling insur- regulators with control of the borhood of New Delhi when a da” at the Metropolitan Opera. PAGE C1 ance company that is now one of country’sA mostPioneer important busi- in Brain Study onstration on SundayA in Delhi.Drastic School Proposal da” at the Metropolitan Opera. PAGE C1 A Pioneer in Brainman confronted Study her and began Women in IndiaA “face Drastic harass- School Proposal Paul Krugman PAGE A19 China’s biggest financial power- ness and financial levers. Mr. openly masturbating. Paul Krugman PAGE A19 houses, according to interviews Dai, anDr. economist, Rita has Levi-Montalcini, since left a Nobel Prize-ment in public spaces,After streets, on years of financial difficulties and That episode was far from the buses,” she said. “We can only and a review of regulatory filings. Dr.his post Rita with theLevi-Montalcini, central bank last. Years of averbal Nobel and physical Prize- After years of financial difficulties and tackle this by becoming Durga,” The regulator, Dai Xianglong, and now manages the country’s sexual affronts left Ms. Mehra, Echoes of a Year’s Refrains winning neurologist who discoveredshe added, referring declining to the fe- enrollment, the Philadelphia was the head of China’s central winning$150 billion social neurologist security fund, now who 29, filled discovered with what she de- declining enrollment, the Philadelphia Echoes of a Year’s Refrains male Hindu god who slays a de- bank and also had oversight of one of the world’s biggest in- scribed as “impotent rage.” critical chemical tools that the bodymon. School District is considering shuttering From the Met’s Götterdämmerung to the insurance industry in 2002, criticalvestment funds. chemical toolsLast that week, she the and thousandsbody School District is considering shuttering From the Met’s Götterdämmerung to when a company his relatives Howuses much theto relatives direct made cellof Indian growth women like and her poured build Indian women haveabout made im- one of every six of its public the Nets’ debut in the Barclays Center, a helped control bought a big stake usesin the deal to is notdirect known, but cell ana- growththat anger into and public builddemonstra- pressive gains about in recent years: one of every six of its public the Nets’ debut in the Barclays Center, a in Ping An Insurance that years lysts nerve say the activity networks, raises fur- tions, was reacting 103. to news of thePAGEmaternal A17 mortality ratesschools. have PAGE A10 look back at a year in images. PAGE C1 U(D54G1D)y+z!=!#!#!% later came to be worth billions of nervether doubts networks, about whether the wasgang 103.rape of another youngPAGE wom- dropped, A17 literacyschools. rates and edu- PAGE A10 look back at a year in images. PAGE C1 U(D54G1D)y+z!=!#!#!% dollars. The insurer was drawing capital markets are sufficiently an who had moved to the city cation levels have risen, and mil- new investors ahead of a public regulated in China. from a small village, with a new lions of women have joined the stock offering after averting in- Nicholas C. Howson, an expert life in front of her. professional classes. But the solvency a few years earlier. in Chinese securities law at the That woman, a 23-year-old women at the heart of the protest With growing attention on the University of Michigan Law physiotherapy student, died Sat- movement say it was born of wealth amassed by families of School, said: “While not per se il- urday from internal injuries in- their outraged realization that no RAVEENDRAN/AGENCE FRANCE-PRESSE — GETTY IMAGES the politically powerful in China, legal or even evidence of corrup- flicted with a metal rod during matter how accomplished they The police patrolled a New Delhi rally on Sunday after the cre- the investments of Mr. Dai’s rela- Continued on Page A3 the rape, which took place on a Continued on Page A6 mation of a woman whose rape prompted widespread protests.

INTERNATIONAL A4-9 NATIONAL A10-12 NEW YORK A13-16 SPORTSMONDAY D1-8 BUSINESS DAY B1-6 Israel Eases Curbs on Gaza Clinton Treated for Blood Clot Day Labor Wanted After Storm Giants Win, but Miss Playoffs Maxim’s Military Focus For the first time in five years, Israel al- Secretary of State Hurricane Sandy has been a boon for Eli Manning threw five touchdown Maxim, a magazine featuring adoles- lowed truckloads of building materials Hillary Rodham day laborers in the New York region as passes and the Giants, fighting for a cent humor and plenty of scantily clad into Gaza for private-sector use. The Clinton has been residents seek help to rebuild. PAGE A13 playoff spot, beat the Eagles, 42-7. But actresses, has become for today’s Army move was one of the first tangible con- hospitalized with a the result was rendered meaningless what Esquire was to soldiers in World blood clot stem- when the Bears beat the Lions. PAGE D1 War II and Playboy was during the Viet- cessions under a cease-fire deal that ARTS C1-8 was reached after eight days of inten- ming from a con- nam War. It is also among the raciest sive fighting in November. PAGE A4 cussion she suf- Off With Her Hair! magazines permitted at military ex- fered this month. The soprano Elza van den Heever de- changes in combat zones. PAGE B1 PAGE A11 cided to shave her head to play Eliza- OBITUARIES A17 beth I in the production of “Maria Stuar- EDITORIAL, OP-ED A18-19 A Pioneer in Brain Study A Drastic School Proposal da” at the Metropolitan Opera. PAGE C1 Paul Krugman PAGE A19 Dr. Rita Levi-Montalcini, a Nobel Prize- After years of financial difficulties and winning neurologist who discovered declining enrollment, the Philadelphia Echoes of a Year’s Refrains critical chemical tools that the body School District is considering shuttering From the Met’s Götterdämmerung to uses to direct cell growth and build about one of every six of its public the Nets’ debut in the Barclays Center, a nerve networks, was 103. PAGE A17 schools. PAGE A10 look back at a year in images. PAGE C1 U(D54G1D)y+z!=!#!#!% Nxxx,2012-12-31,A,003,Bs-BW,E1_KNxxx,2012-12-31,A,003,Bs-BW,E1_K Nxxx,2012-12-31,A,003,Bs-BW,E1_K

K K THE NEW YORK TIMES, MONDAY, DECEMBERTHE NEW 31, 2012 YORK TIMES, MONDAY, DECEMBER 31, 2012 N A3 N A3 K THE NEW YORK TIMES, MONDAY, DECEMBER 31, 2012 N A3 Nxxx,2012-12-31,A,003,Bs-BW,E1_K

K THE NEW YORK TIMES, MONDAY, DECEMBER 31, 2012 N A3

GILLES GILLESSABRIE SABRIE FOR THEFOR THENEW NEW YORK YORK TIMES TIMES GILLES SABRIE FOR THE NEW YORK TIMES The Ping An InternationalThe Ping Finance An International Center,The beingFinance Ping built Center,An inInternational Shenzhen.being built in PingFinanceShenzhen. An Center,is Ping amongGILLES An being is SABRIE the among world’s builtFOR theTHE in NEWworld’s biggest Shenzhen. YORK biggest TIMES financial financial Ping institutions.An institutions. is among the world’s biggest financial institutions. The Ping An International Finance Center, being built in Shenzhen. Ping An is among the world’s biggest financial institutions. Chinese Regulator’s FamilyReaps Insurance Profit Chineseever Regulator’s held a stake inChinese Ping An. FamilyReaps The spok eswomanRegulator’s tal. That Insurancecompan FamilyReapsy, Tianjin Taihong Profit, was later Insurance Profit said another businessman had bought the Ping partly controlled by relativesworld’s of biggest Prime financial Minister institu- Chinese Regulator’sFrom FamilyReaps Page A1 Insurance Profit world’stions, biggest worth an financial estimated institu- $65 bil- world’s biggest financial institu- An shares and then, facing financial difficulties, Wen Jiabao, then servinglion. as vice premier with From Page A1tion, these transactions feed into From Page A1 tions, worth an estimated $65 bil- tions, worth an estimated $65 bil- solda problematic them perceptionto a group that isthat included Mr. Che’s world’soversight biggest of financialChina’s institu-financialThe decision institutions. to grant the waiv- In From Page A1 lion. lion. tion, these transactionsfriendswidespread feed into and in the relatives, P.R.C.: thetion, rel- but these not transactions Mr. Che. feed into tions,late 2007, worth the an estimatedshares T $65aihong erbil- came bought after Ping in An Ping executives An tion, these transactions afeed problematic into perceptionatives that of China’s is highest officialsa problematic perception that is lion. Theand decision the insurer’s to grant bankers the hadwaiv- ag- The decision to grant the waiv- gressively lobbied regulators, in- a problematic perceptionwidespread that is in the P.R.C.:are the givenThe rel- privilegedbusinessman accesswidespread to“could innot the afford P.R.C.: what the rel- he wereThe decisionvalued toat grant$3.7 billion.erthe came waiv- after Ping An executives er came after Ping An executives pre-I.P.O. properties.” He was us- cluding Mr. Dai. widespread in the P.R.C.:atives the rel- of China’s highesthas officials created, so he ativeshad toof China’ssell his highest shares officials all at er cameThe after investments Ping An executivesand by the Dingheinsurer’s bankersand T aihonghad ag- and the insurer’s bankers had ag- ing the abbreviation for China’s The Times reviewed copies of gressively lobbied regulators, in- atives of China’s highestare officials given privileged access to are given privileged access to and the insurer’s bankersgressively had lettersag- lobbied written toregulators, Mr. Dai. In one,in- once,”official name, the thespokeswoman, People’s Re- Jenny Lau, wrote in are significant in part because by late 2002, Bei- cluding Mr. Dai. are given privileged accesspre-I.P.O. to properties.” Hepublic was of China.us- pre-I.P.O. properties.” He was us- gressively lobbied regulators,cludingMa in- Mr. Mingzhe, Dai. the chairman of pre-I.P.O. properties.” Heing was the us- abbreviation foranThe China’se-mail. company that boughting the the abbreviation for China’s cludingjing regulators Mr. Dai. had grantedThePing Times PingAn, pleaded reviewed An an with unusual copies Mr. Dai ofto The Times reviewed copies of ing the abbreviation forofficial China’s name, the People’sPing AnT he Re-stake corpor was controlledateofficial records by name, reviewed the People’s by Re-The waiverThe Times to rules reviewed that letters copies wouldapprove written of have an to forced overMr.seas Dai. the stockIn one, in of-- letters written to Mr. Dai. In one, fering in 1998, saying, “It would official name, the People’spublic Re- of China. Ta imes, group of however, investment firms,showpublic in- thatof China. Mr. Che, his rela- letterssurer writtento sell tooff Mr. some Dai.Ma Indivisions. Mingzhe,one, T thehr oughout chairman the of Ma Mingzhe, the chairman of cluding two set up by Mr. Dai’s Ping An,be rather pleaded difficult with to Mr.raise Dai such to a Ping An, pleaded with Mr. Dai to public of China. The company that bought the The company that bought the Ma Mingzhe, the chairmanhuge of amount of money in the do- tivesson-in-law, and Che longtime Feng, as well business as associates set up a late 1990s, the company was fighting rules that approve an overseas stock of- The company that boughtPing An the stake was controlledother firms by associated withPing Mr. An stake was controlled by Ping An, pleaded with Mr.approve Daimestic to an market.” overseas stock of- Ping An stake was controlleda group by of investmentcomplexChe’s firms, relatives in- web and of business companiesa group as- of that investment effectively firms, gave in- approvewould have an over requiredseas stockfering a breakup, of- inThe 1998, regulatory saying, a move filings “It would that show fering in 1998, saying, “It would a group of investment firms,cluding in- two set up byhimsociates, Mr. and Dai’s the the regulatory others cluding filings control two of set Dinghe up by Mr. Ventur Dai’se feringPing An in 1998,executives saying, “Itbeworried rather wouldthat Dinghe, difficultcould the leadto company raise to suchbank partly a- be rather difficult to raise such a controlled by Mr. Dai’s relatives, cluding two set up by Mr.son-in-law, Dai’s Che Feng, Capital,show. as well as which madeson-in-law, the investments Che Feng, in as Ping well asAn beruptcy. rather difficult to raisehuge such amount a of money in the do- huge amount of money in the do- other firms associated withThe company, Mr. Dinghe Ventureother firms associated with Mr. huge amount of money inmestic the gotdo- market.” an extremely good deal on mestic market.” son-in-law, Che Feng, as well as Capital, got the shares for an ex- the shares of Ping An it had and Haitong Securities. The records show that It isCHINAFOTOPRESS/GETTY unclear whether IMAGESThe Mr. regulatory Wen or filingsMr. Dai show in- The regulatory filings show other firms associated Che’s with Mr. relatives and businesstremely good as- price, the recordsChe’s relatives and business as- mestic market.” bought. In December 2002, Che’s relatives and businesssociates, as- the regulatoryoneshow, filingsof paying the a companies small fractionsociates, oflaterDai the nominatedXianglong, regulatory who Mr. filingshas Che had a longtervened Thecareer regulatory as ona regulator, behalf filings nowofthat Ping showDinghe,Dinghe An, thebut bought company in April 66.5 partly million2002 that Dinghe, the company partly sociates, the regulatoryshow. filings towhat serve a large on British the bankPingshow. had An headsboard the of council supervisors. overseeing China’s thatthe social companyDinghe, security the fund. wascompany allowedcontrolled partlyshares to byreorganize from Mr. Cosco,Dai’s relatives, aand Chinese re- controlled by Mr. Dai’s relatives, show. The company, Dinghepaid Venture per share just two monthsThe company, Dinghe Venture controlled by Mr. Dai’s gotrelatives, anstate-owned extremely shipping good giant, deal pay- on got an extremely good deal on His term ran from 2006 to 2009. tain its brokerage and trusting about division. 40 cents T aw share,o years after The company, DingheCapital, Venture got the sharesearlier. for an Theex- company paidCapital, $55 nessman got the hadshares bought for the an Ping ex- An thatgot another an extremely investment good compa-the deal shares on of Ping An it had the shares of Ping An it had adjusting for a laterCHINAFOTOPRESS/GETTY stock split, IMAGES millionT forhe its T imesPing An reported shares on lastshares month and then, that facing another financial CHINAFOTOPRESS/GETTYnylater, had also Ping bought An shares IMAGES sold in Pingbought.shares to In the December public for 2002, the bought. In December 2002, Capital, got the shares fortremely an ex- good price, theDec. records 26, 2002. By 2007, thetremely last good price, the records the shares of Ping An it hadaccording to public filings and a difficulties,CHINAFOTOPRESS/GETTY sold them to a groupIMAGESDaiAn Xianglong,Insurance at an who unusually has lowhad a long career as a regulator, now tremely good price, theshow, records paying a small investmenttime fraction the value of ofDai company the Xianglong,investmentshow, had paying whoalso has abought small had fraction ashares long career of in asbought.first a regulator,time In in Hong December now Kong.Dinghe 2002,report In 2007, bought in a state-run after 66.5 a newspaper. second million Dinghe bought 66.5 million that included Mr. Che’s friends price on the same day in 2002 as what a largeDai British Xianglong, was bank made who had public, hasheads the had shares the awhat were longcouncil acareer large overseeing as British a regulator, China’s bank had socialnowheads securityDinghe the councilfund. bought overseeing 66.5 shares million China’sIt was from the social same Cosco, price security a paid Chinese by fund. Tai- shares from Cosco, a Chinese show, paying a small fraction of Ping An Insurance at an unusuallyand relatives, butlow not price Mr. Che. on Dinghestock Venturelisting Capital.in Shanghai, That the value of the com- worth $3.1 billion. state-ownedhong, the shipping company affiliated giant, pay- with state-owned shipping giant, pay- what a large British bankpaid perhad shareheads just the two council months overseeing China’spaid per social The share security businessman just two fund. months “could not company,shares from Tianjin Cosco, Taihong, a was Chinese theIn itssame investigation, day in The2002 New as Dinghe Venture Capi- the relatives of Mr. Wen. paid per share just twoearlier. months The company paid $55 earlier. The company paid $55 laterstate-ownedpany’s partly shares controlled shipping skyrocketed. by giant, rela-ing about pay- 40T odacentsy, aPing share, An after is ing about 40 cents a share, after York Times foundnessman no indication had boughtafford the what Ping he has An created,that so another henessman investment had bought compa- the Ping An Thethat price another was much investment lower than compa- million for its Ping An shares on million for its Ping An shares on tives of Prime Minister Wen adjustingJia- for a later stock split, adjusting for a later stock split, earlier. The company paid $55 that Mr. Dai hadshares been awareand then, of had facing to sell financial his shares allny at had once,” alsoshares boughting aboutand shares then, 40 cents infacing Ping a share,financial afterwhatny the had British also bank bought HSBC shares paid in Ping nessman had bought the Ping An that another investment compa- bao, then serving as vice premier according to public filings and a million for its Ping An sharesDec. 26, on 2002. By 2007,his the relatives’ last activities, orDec. that 26, 2002. By 2007, the last adjusting for a later stockaccording split,for a 10 to percent public stake filings in Ping and An a shares and then, facing difficulties,financial soldny had them also to bought a group sharesAn in Insurance Pingdifficulties,with at oversightan unusually sold ofthem China’s low to a finan- group An Insurance at an unusually low Dec. 26, 2002. By 2007,time the the last value of the investmentany law had been broken. Buttime the the value of the investment according to public filingsreport andin in a October a state-run of that newspaper. year. HSBC report in a state-run newspaper. difficulties, sold them tothat a group includedAn Mr.Insurance Che’s at friends an unusuallyprice lowon thethatcial same included institutions. day in Mr. In2002 late Che’s as 2007, friends the price on the same day in 2002 as time the value of the investmentwas made public, the sharesrelatives were appeared to havewas made made public, the shares were report in a state-run newspaper.It waspaid the same what atprice today’s paid exchange by Tai- It was the same price paid by Tai- that included Mr. Che’sand friends relatives,price but noton theMr. sameChe. day inDinghe 2002 as and Ventureshares relatives, Taihong Capital. but bought not That Mr. in Che. Ping Dinghe Venture Capital. That was made public, the sharesworth were $3.1 billion. a fortune by investing in financialworth $3.1An billion. insurer won an It was the same price paidhong, by Tai- ratesthe company would be $1.60 affiliated a share. with hong, the company affiliated with and relatives,services but not companies Mr. Che.The over businessman whichDinghe Venture “could not Capital.company, That TianjinAnThe were businessman valued Taihong, at $3.7 was billion. “could not It company,is unclear why Tianjin Cosco Taihong,would was worth $3.1 billion. In its investigation, The New In itsexemption investigation, from The Newrules hong,The investmentsthe company by affiliated Dinghethe relatives with of Mr. Wen. the relatives of Mr. Wen. The businessmanMr. Dai had regulatory “couldafford authority.notwhat company,he has created, Tianjin so he Taihong,later was partlyafford controlled what he has by created, rela- so hehavelater sold Ping partly An shares controlled at such by rela- In its investigation, TheYork New Times found no indication York Times found no indication andthe relatives Taihong are of Mr. significant Wen. inThe price was much lower than The price was much lower than afford what heIn anotherhas created, insthadance, soto in hesell Novem- hislater shares requiring partly all at controlled once,” a breakup. tives by rela-of Primehad to Minister sell his shares Wen Jia- all at once,”a substantialtives of discount.Prime Minister Cosco did Wen Jia- York Times found no indicationthat Mr. Dai had been aware of that Mr. Dai had been aware of partThe because price by was late much2002, Beijing lowerwhat than thenot British return callsbank seekingHSBC paid com- what the British bank HSBC paid ber 2002, Dinghe acquired a bigtives of Prime Minister bao,Wen then Jia- serving as vice premier bao, then serving as vice premier that Mr. Dai had beenhis aware relatives’ of had activities, to sell stakehis orshares in that Haitong all at once,” Securities,his relatives’ a activities, or that regulatorswhat the hadBritish granted bank Ping HSBCfor An a paid10ment. percent A spokeswoman stake in Ping for PingAn for a 10 percent stake in Ping An bao, then serving as vicewith premier oversightan unusual of China’s waiver finan- to rules that with oversight of China’s finan- his relatives’ activities,any or law that had been broken.brokerage But the firm that also fellany un- law had been broken. But the for a 10 percent stake inin Ping OctoberAn An also did of not that return year. calls. HSBC in October of that year. HSBC der Mr. Dai’s jurisdiction, accord-with the oversight spokeswoman, of China’s Jennycial finan- institutions. Lau, would Inhave late forced 2007, the the insurer to Mr.cial Dai, institutions. 68, has had a In long late ca- 2007, the paid what at today’s exchange any law had been broken.relatives But the appeared to have made relatives appeared to have made sellin off October some divisions. of that Through- year.paid HSBC what at today’s exchange ing to the brokerage firm’scial institutions.wrote in an e-mail. In late shares 2007, the Taihong bought in Ping reershares as a government Taihong regulator bought in Ping relatives appeared to havea fortune made by investing in financial An insurera fortune won by investing an in financial Anoutpaid insurer the what late 1990s, at won today’s the company an exchangerates would be $1.60 a share. rates would be $1.60 a share. Shanghai prospectus. The corporate recordsAn were re- valued at $3.7 billion. and An an executivewere valued at state-owned at $3.7 billion. a fortune by investing inservices financial companiesAn insurer over which won an servicesshares companies Taihong bought over which in Ping wasrates fighting would rulesbe $1.60 that a share. wouldIt is unclear why Cosco would It is unclear why Cosco would By 2007, justexemption after Haitong’sAn were viewedfrom valued by rules The at $3.7 Times, billion. however,The investmentsexemption by Dinghefrom rulescompanies.The He investments held high-level bypo- Dinghe services companies overMr. whichDai had regulatorypublic authority. listing in Shanghai,Mr. those Dai had regulatory authority. haveIt required is unclear a breakup, why Cosco a movehave would soldsitions Ping at theAn Agriculturalshares at such Bank have sold Ping An shares at such show that Mr. Che, hisand relatives Taihong are significant in and Taihong are significant in Mr. Dai had regulatory authority.In anotherexemption instance, sharesin Novem- werefrom worth rules about $1In bil- anotherThe investments instance, in byNovem- Dinghe thathave Ping sold An Ping executives An shares worrieda substantialat suchof China, Chinadiscount. Pacific Cosco Insurance did a substantial discount. Cosco did requiring aand breakup. longtime business partassociates becauserequiringcould by leadlate to 2002, bankruptcy. a Beijingbreakup. part because by late 2002, Beijing In another instance, inber Novem- 2002, Dinghe acquiredlion, according a big to public filings.berand 2002, set Taihong Dinghe up a complex are acquired significant web of a compa- big in a substantial discount. Cosconot return and,did in callsthe early seeking 1990s, atcom- the not return calls seeking com- requiringLater, a between breakup. 2007 and 2010, Mr. It is unclear whether Mr. Wen Bankregulators of Communications, had granted where Ping An stake in Haitong Securities, a stakepart inbecausenies Haitong that effectively by late Securities, 2002, gaveregulators himBeijing a and had granted Ping An ment. A spokeswoman for Ping ment. A spokeswoman for Ping ber 2002, Dinghe acquired a big Dai’s wife, Ke Yongzhen, was ornot Mr. Dai return intervened calls on seeking behalf of com-he oversaw Haitong Securities, regulatorsthe others had control granted of Dinghe an Ping unusual Ven- An waiver to rules that an unusual waiver to rules that stake in Haitong Securities,brokerage a firm that alsochairwoman fell un- on Haitong’s brokerage board firm that also fell un- Pingment. An, A but spokeswoman in April 2002 An thefor also Pingthe did bank’s not brokeragereturn calls. division. An also did not return calls. ture Capital, which madewould the have in- forced the insurer to would have forced the insurer to brokerage firm that alsoder fell Mr. un- Dai’s jurisdiction,of supervisors. accord- the spokeswoman,deran Mr. unusual Dai’s Jenny jurisdiction, waiver Lau, to accord- rules thatthecompanyAn spokeswoman, also wasdid notallowed return Jennyto reorga- calls. Lau,Mr. Dai,In 1995, 68, hehas was had appointed a long headca- Mr. Dai, 68, has had a long ca- vestments in Ping Ansell and off Hai- some divisions. Through- sell off some divisions. Through- der Mr. Dai’s jurisdiction,ing accord- to thethe brokerage spokeswoman,A spokesman firm’s Jennywrote for Mr. Lau, in Dai aning ande-mail.would to thehave brokerageforced the insurer firm’s towrotenizeMr. andin an Dai,retain e-mail. 68, its hasbrokerage had a reerand long as ofca- China’s a government central bank, regulator one of the reer as a government regulator Shanghai prospectus. the National Social SecurityShanghai Fundsell offtong prospectus.some Securities. divisions. The Through-out records the latetrust 1990s, division. the company Two years later,and annation’s executiveout mostthe late powerfulat state-owned 1990s, financial the company and an executive at state-owned ing to the brokerage firm’s wrote in an e-mail. The corporateshow records that one of re- the companies Thereer as corporate a government records regulator re- By 2007, just after did Haitong’s not return phone calls seek-Byout 2007, the late just 1990s, after the Haitong’s was company fightingPing rules An sold that shares would to the publiccompanies.posts.was He fighting steppedheld high-level down rules in po- thatDe- would companies. He held high-level po- Shanghai prospectus. The corporate recordsviewed re- by The Times,later nominated however, Mr. Che to serveviewedforand the an by first executive The time Times, in Hong at state-owned however, Kong. public listing in Shanghai,ing comment. those A spokeswomanpublicwas listing fighting in Shanghai, rules that have those would required a breakup, a move sitionscember athave the 2002 required Agricultural to become a breakup,mayor Bank of a move sitions at the Agricultural Bank By 2007, just after Haitong’s viewed byfor The Mr. Times, Che, the show however, son-in-law, that Mr. de- Che,on the his Ping relatives An board of supervi-showIncompanies. 2007, that after Mr. a He Che,second held his stock high-level relatives list- Tianjin.po- Then, in 2008, he became shares were worth about $1 bil- shareshave wererequired worth a breakup, about that $1 a bil-move Ping An executives worried of China, thatChina Ping Pacific An executivesInsurance worried of China, China Pacific Insurance public listing in Shanghai, those show that nied Mr. by Che, e-mail his thatand relatives helongtime had ever businesssors. His associates term ran from 2006 toandingsitions longtime in Shanghai, at thebusiness the Agricultural value associates of the Bankhead of the National Council for lion, according to public filings. lion,that according Ping2009. An toexecutives public filings.could worried lead tocompany’s bankruptcy. shares skyrocketed.and, in thecould early lead to 1990s, bankruptcy. at the and, in the early 1990s, at the shares were worth about $1 bil- and longtimeheld business a stake associates inset Ping up a An. complex The web of compa- setof up China, a complex China webPacific of compa-InsuranceSocial Security Fund. During Later, between 2007 andspokeswoman 2010, Mr. said anotherLater, busi-could between leadThe to Times 2007bankruptcy. reported and 2010, lastIt Mr. month is unclearToday, whether Ping An Mr. is Wen one of Bank the much of Communications, ofIt hisis career,unclear he whether developed where Mr. Wen Bank of Communications, where lion, according to public filings. set up a complex web ofnies compa- that effectively gave him and niesand, that ineffectively the early gave 1990s, him and at the Later, between 2007 and Dai’s2010, Mr. wife, Ke Yongzhen, was Dai’s It wife,is unclear Ke Yongzhen, whether orMr. wasMr. Wen Dai intervenedBank of Communications, on behalf of he where oversawcloseor tiesMr. Haitong withDai intervened senior Securities, Chinese on behalf of he oversaw Haitong Securities, nies that effectively gavethe him others and control of Dinghe Ven- the others control of Dinghe Ven-leaders, including Mr. Wen, who Dai’s wife, Ke Yongzhen,chairwoman was on Haitong’sA Lucrative board Stock Salechairwomanor Mr. Dai onintervened Haitong’s on Ping boardbehalfCosco An, of buthe in oversaw April 2002 Haitong the Securities,the bank’sPing brokerage An, but division. in April 2002 the the bank’s brokerage division. the others control of Dingheture Ven- Capital,of supervisors. which made the in- companyture was Capital,allowed whichto reorga- made the in-servedcompany with him was on the allowed powerful to reorga- chairwoman on Haitong’sof supervisors. board On Dec. 26, 2002, Cosco, a globalPing An, but in April 2002 the246.4the MILLION bank’s brokerage division.In 1995,Central he Financial was appointed Work Commis- head In 1995, he was appointed head ture Capital, which madevestments the in- in Ping An and Hai- PINGvestments AN SHARES in Ping An and Hai- nize and retain its brokerage and of supervisors. A spokesman for Mr.shipping Dai andgiant owned by the Acompany spokesman was forallowed Mr. Dai tonize reorga- and and retainIn its 1995, brokerage he was andappointedof China’s headsion. central The commission bank, one oversaw of the of China’s central bank, one of the vestments in Ping An tong and Hai- Securities. The records tong Securities. The records A spokesman for Mr.the Dai National and Social SecurityChinese Fund government, sold 246.4thenize National and retain Social its Security brokeragetrust Fund and division.of China’s Two years central later, bank, onenation’s of China’sthe mosttrust banking, powerful division. securities financial Two yearsand later, nation’s most powerful financial show that one of the companies show that one of the companies the National Social Securitydid Fund not returntong phone Securities. callsmillion seek-shares The of Ping records An to didthreetrust not return division. phone Two calls yearsPing seek- later, An soldnation’s shares to most the powerfulpublic posts. financialinsurance HePing stepped An regulators, sold down shares and in De-to the the public posts. He stepped down in De- later nominated Mr. Che to servebiggest financial institutions. did not return phone callsing seek- comment.show A that spokeswoman companies, one of the including companieslater two nominated withing Ping comment. Mr. An Chesold Atoshares serve spokeswoman to thefor public the first posts. time in He Hong stepped Kong. downcember in De- 2002for theto become first time mayor in Hong of Kong. cember 2002 to become mayor of for Mr. Che,later the nominated son-in-law,ties to relativesMr. de- Che ofon to theserve Pingfor An Mr. board Che, of the supervi- son-in-law,In 2007, de- afteron the a secondPing An stock board list- of supervi- BigIn financial2007, after services a second compa- stock list- Tianjin. Then, in 2008, he became ing comment. A spokeswoman for the first time in Hong Kong. cember 2002 to become Tianjin.mayornies of Then, also sought in 2008, Mr. he Dai’s became aid in nied by e-mailon the that Ping hehigh-ranking hadAn board ever Chinese ofsors. supervi- Hisnied termIn by2007, ran e-mail fromafter that a 2006 second he to had stocking ever in list- Shanghai,sors. His the term value ran of fromthe 2006head to of theing Nationalin Shanghai, Council the value for of the head of the National Council for for Mr. Che, the son-in-law, de- officials. Tianjin Taihong Dinghe Tianjin. GuangzhouThen, in 2008, Hengde he becamenavigating the state’s tight regu- nied by e-mail that he held had ever a stakesors. in His Ping term An. ran The from2009. 2006 toheldingInvestment a in stake Shanghai, in Ping the value An.Venturecompany’s The of Capitalthe2009. head shares of skyrocketed.the NationalTrading CouncilSocial latory for Securitycompany’s environment. Fund. shares For Duringinstance, skyrocketed. Social Security Fund. During held a stake in Ping spokeswoman An. The 2009. said another busi- The Timesspokeswomancompany’s reportedOwned by last said shares month another skyrocketed.PartlyToday, busi- controlled Ping byTheSocial An Times Controlled is Security one reported ofby the the Fund. last brother monthmuch During Pingof hisToday, An’s career, longtime Ping he chairman, developed An is oneMr. of the much of his career, he developed spokeswoman said another busi- The Times reported last monthbusinesswomanToday, Ping Duan An is onerelatives of theof Dai much ofof his Lee career, Shau Kee, he the developedclose Ma, ties kept with a telephone senior Chinese directory close ties with senior Chinese with Mr. Dai’s name, as well as Weihong, and later Xianglong, the formerclose tiesHong with Kong seniorproperty leaders, Chinese including Mr. Wen, who leaders, including Mr. Wen, who A Lucrative Stock Sale partlyA Lucrative by the relatives CoscoStock central Sale bank chief who tycoon who controlsCosco the name of his wife and son-in- leaders, including Mr. Wen,served wholaw, with according him on tothe recordspowerful re- served with him on the powerful Cosco of Prime Minister Wen had oversight of Henderson Land A Lucrative Stock OnSale Dec. 26, 2002, Cosco, a global On Dec. 26, 2002, Cosco,246.4 a globalMILLION served with him on the Centralpowerfulviewed246.4 Financial MILLION by The Work Times Commis-and an in- Central Financial Work Commis- Jiabao. insurancePING AN SHARES companies. Development. PING AN SHARES On Dec. 26, 2002, Cosco,shipping a global giant owned by the 246.4shipping MILLION giant owned by the Central Financial Work sion.Commis-terview The commission with a former staff oversaw assist- sion. The commission oversaw shipping giant owned by theChinese government, sold 246.4 PINGChinese AN SHARES government, sold 246.4 sion. The commissionChina’s oversawant banking,to Mr. Ma. securities and China’s banking, securities and In addition, Li Chunyan, who Chinese government, soldmillion 246.4 shares of Ping AnDec. to three26, 2002 million79.9 sharesMILLION of Ping An to three66.5 MILLION China’s banking,100 MILLION securitiesinsurance and regulators, and the insurance regulators, and the SHARES = SHARES = SHARES = once ran Ping An’s Beijing office, million shares of Ping An companies,to three including twoInitial with number companies, including two with insurance regulators, biggest and the financial institutions. biggest financial institutions. of shares $65 million $55 million $82 million said last month in a telephone in- biggest financial institutions.Big terview financial that serviceshe had set compa-up meet- Big financial services compa- companies, including twoties with to relatives of (Value in ties to relatives of nies alsoings sought between Mr. Mr. Dai’s Ma and aid rela- in nies also sought Mr. Dai’s aid in ties to relatives of high-ranking Chinese today's prices) high-ranking Chinese Big financial services compa- Tianjin Taihong Dinghetives of Mr. Dai,Guangzhou including hisHengde high-ranking Chinese officials. Tianjin Taihong officials. Dinghe Guangzhounies also soughtHengde Mr. Dai’snavigating aid in the state’s tight regu- navigating the state’s tight regu- Investment Venture Capitalson-in-law, Mr. Che. Trading latory environment. For instance, officials. Tianjin Taihong InvestmentDinghe VentureGuangzhou Capital Hengde navigatingTrading the state’s tightlatory regu- environment. For instance, Ping An’s“I longtime wouldn’t saychairman, I introduced Mr. Ping An’s longtime chairman, Mr. Investment In 2003, PingOwnedVenture An had by a Capital Partly controlledTrading by OwnedControlled latoryby environment.by the brotherPartly For controlled instance,them, by but I broughtControlled them,” by the he brother two for one stock split, Ma, kept a telephone directory Ma, kept a telephone directory Owned by businesswomanPartly controlled Duan by159.8 MILLIONControlledrelatives ofby Dai thebusinesswoman 132.9 brother MILLION of PingLee Duan Shau An’s longtimeKee,200 MILLIONthe relativeschairman, of said,Mr.Dai declining of to Lee give Shau details. Kee, the meaning that all with Mr. Dai’s name, as well as with Mr. Dai’s name, as well as businesswoman Duan Weihong,relatives and later of Dai SHARESXianglong,of Lee Shauthe former Kee,Weihong,SHARES the andHongMa, later Kong kept property a telephoneSHARESXianglong, directory the “I’mformer just a smallHong potato, Kong youproperty shareholders doubled the nameknow.” of He his added, wife and“I’m son-in- very fa- the name of his wife and son-in- partlyXianglong, by the relatives the former centralHong bank Kong chief property partlywho by thetycoon withrelatives Mr.who Dai’scontrols central name, bank as well chief as who tycoon who controls Weihong, and later their number of shares. law, miliar according with the to family records of Mr. Dai.” re- law, according to records re- of Prime Minister Wen had oversight ofof Prime MinistertheHenderson nameWen of Land his wifehad andoversight son-in- of Henderson Land partly by the relatives central bank chief who tycoon who controls viewed Later,by The at theTimes National and an Council in- viewed by The Times and an in- Jiabao.law, accordinginsurance to records companies. re- Development. of Prime Minister Wen hadJiabao. oversight of insuranceHenderson companies. Land Development. for Social Security Fund, Mr. Dai terview with a former staff assist- viewed by The Times andterview anbegan in- with overseeing a former staff a huge assist- fund Jiabao. Peak shareinsurance companies. Development. terview with a former staffant assist- to thatMr. hasMa. acquired stakes in Hai- ant to Mr. Ma. value, 2007 In addition, Li Chunyan, who In addition, Li Chunyan, who Dec. 26, 2002 79.9 MILLION Dec. 26, 200266.5 MILLION 79.9 MILLIONant100 to Mr. MILLION Ma. 66.5 MILLIONtong and Ping An. Last100 Septem- MILLION It’s unclear if the once ranber, Ping the government-controlledAn’s Beijing office, once ran Ping An’s Beijing office, Dec. 26, 2002 Initial number companies heldSHARES their = Initial$3.7 number billion SHARES = $3.1 billionSHARES = InSHARES addition, =$4.6 Libillion Chunyan,SHARES = who SHARES = 79.9 MILLION 66.5 MILLION 100 MILLION said lastsocial month security in funda telephone said it would in- said last month in a telephone in- Initial number of sharesSHARES = entire stakes$65 until millionSHARES 2007, = of shares $55 millionSHARES = $65 milliononce$82 ran million Ping An’s Beijing$55 million office, $82 million terviewallocate that $3.6he hadbillion set to upa group meet- of terview that he had set up meet- of shares (Value in$65 million but most of the$55 shares million (Value in $82 million said last month in a telephone16 in- Chinese private equity funds, were still held by them or terview that he had set ingsup meet- between Mr. Ma and rela- ings between Mr. Ma and rela- (Value in today's prices) today's prices) including New Horizon Capital, a in affiliated companies. ings between Mr. Ma andtives rela-fund of Mr. whose Dai, founders including include his tives of Mr. Dai, including his today's prices) tives of Mr. Dai, includingson-in-law, Wen his Yunsong, Mr. Che. the only son of the son-in-law, Mr. Che. Source: Ping An prospectus; corporate registration filings. son-in-law, Mr. Che.THE NEW YORK TIMES“I wouldn’tprime minister. say I introduced “I wouldn’t say I introduced In 2003, Ping An had a In 2003, Ping An had a “I wouldn’t say I introducedthem, but I brought them,” he them, but I brought them,” he two for one stock split, In 2003, Ping An had a two for one stock split, 159.8 MILLION 132.9 MILLION 159.8 MILLIONthem,200 MILLION but I brought132.9 them,”said, MILLION declining he to give200 details. MILLION said, declining to give details. meaning that all meaning that all two for one stock split, 159.8 MILLION SHARES132.9 MILLION SHARES200 MILLION SHARESsaid, SHARES declining to giveSHARES“I’m details. just a small potato,SHARES you “I’m just a small potato, you meaning that all shareholdersSHARES doubled SHARES shareholders doubledSHARES “I’m just a small potato,know.” you He added, “I’m very fa- know.” He added, “I’m very fa- shareholders doubled their number of shares. their number of shares. know.” He added, “I’m miliar very with fa- the family of Mr. Dai.” miliar with the family of Mr. Dai.” their number of shares. miliar with the family of Mr.Later, Dai.” at the National Council Later, at the National Council Later, at the Nationalfor Council Social Security Fund, Mr. Dai for Social Security Fund, Mr. Dai began overseeing a huge fund began overseeing a huge fund Peak share Peak share for Social Security Fund, Mr. Dai that has acquired stakes in Hai- that has acquired stakes in Hai- value, 2007 began overseeing a huge fund Peak share value, 2007 tong and Ping An. Last Septem- tong and Ping An. Last Septem- It’s unclear if the It’s unclear if the that has acquired stakes in Hai- value, 2007 tong and Ping An. Lastber, Septem- the government-controlled ber, the government-controlled companies held their $3.7 billion companies held$3.1 their billion $3.7 billion$4.6 billion $3.1 billion $4.6 billion It’s unclear if the ber, the government-controlledsocial security fund said it would social security fund said it would entire stakes until 2007, entire stakes until 2007, companies held their $3.7 billion $3.1 billion $4.6 billion social security fund saidallocate it would $3.6 billion to a group of allocate $3.6 billion to a group of but most of the shares entire stakes until 2007, but most of the shares allocate $3.6 billion to a 16group Chinese of private equity funds, 16 Chinese private equity funds, but most of the shares were still held by them or were still held by them or 16 Chinese private equityincluding funds, New Horizon Capital, a including New Horizon Capital, a were still held by them orin affiliated companies. in affiliated companies. including New Horizon Capital,fund whose a founders include fund whose founders include in affiliated companies. fund whose founders Wen include Yunsong, the only son of the Wen Yunsong, the only son of the Source: Ping An prospectus; corporate registration filings. Source: Ping An prospectus; corporate registration filings.Wen Yunsong,THE NEW YORK the TIMES only sonprime of theminister. THE NEW YORK TIMES prime minister. Source: Ping An prospectus; corporate registration filings. THE NEW YORK TIMES prime minister. Nxxx,2012-12-31,A,003,Bs-BW,E1_KNxxx,2012-12-31,A,003,Bs-BW,E1_K

K K THETHE NEW NEW YORK YORK TIMES, TIMES, MONDAY, MONDAY, DECEMBER DECEMBER 31, 2012 31, 2012 N N A3 A3

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GILLESGILLES SABRIE SABRIE FOR THE FOR NEW THE YORKNEW YORKTIMES TIMES TheThe Ping Ping An InternationalAn International Finance Finance Center, Center, being being built built in Shenzhen. in Shenzhen. Ping Ping An isAn among is among the theworld’s world’s biggest biggest financial financial institutions. institutions. ChineseChinese Regulator’s Regulator’s FamilyReaps FamilyReaps Insurance Insurance Profit Profit

world’sworld’s biggest biggest financial financial institu- institu- FromFrom Page Page A1 A1 tions,tions, worth worth an estimated an estimated $65 bil-$65 bil- tion,tion, these these transactions transactions feed feed into into lion.lion. a problematica problematic perception perception that that is is The Thedecision decision to grant to grant the waiv-the waiv- widespreadwidespread in the in P.R.C.:the P.R.C.: the rel-the rel- er cameer came after after Ping Ping An executivesAn executives ativesatives of China’s of China’s highest highest officials officials and andthe insurer’sthe insurer’s bankers bankers had hadag- ag- gressivelygressively lobbied lobbied regulators, regulators, in- in- are are given given privileged privileged access access to to GILLES SABRIE FOR THE NEW YORK TIMES cludingcluding Mr. Dai.Mr. Dai. pre-I.P.O.pre-I.P.O. properties.” properties.” HeThe was He Ping wasus- Anus- International Finance Center, being built in Shenzhen. Ping An is among the world’s biggest financial institutions. ing ing the the abbreviation abbreviation for China’s for China’s The The Times Times reviewed reviewed copies copies of of officialofficial name, name, the the People’s People’s Re- Re- lettersletters written written to Mr. to Mr.Dai. Dai. In one, In one, publicpublic of China. of China. Ma Ma Mingzhe, Mingzhe, the the chairman chairman of of The The company company that that boughtChinese bought the the Regulator’s FamilyReaps InsurancePingPing An, An,pleaded pleaded with with Mr. Profit Mr.Dai Daito to PingPing An stakeAn stake was wascontrolled controlled by by approveapprove an overan overseasseas stock stock of- of- feringfering in 1998, world’s in 1998, saying, biggest saying, “It financial would “It would institu- a groupa group of investment of investment firms, firms, in-From in- Page A1 cludingcluding two two set upset by up Mr. by Mr. Dai’s Dai’s be ratherbe rather difficulttions, difficult worth to raise anto estimatedraise such such a $65 a bil- tion, these transactions feed into hugehuge amount amountlion. of money of money in the in do-the do- son-in-law,son-in-law, Che Che Feng, Feng, as well as well as as The decision to grant the waiv- a problematic perception that is mesticmestic market.” market.” otherother firms firms associated associated withwidespread with Mr. Mr. in the P.R.C.: the rel- er came after Ping An executives Che’sChe’s relatives relatives and and business businessatives as-of China’s as- highest officials The The regulatory and regulatory the insurer’s filings filings bankers show show had ag- sociates,sociates, the the regulatory regulatoryare filings given filings privileged access to thatthat Dinghe, Dinghe,gressively the companythe lobbied company partlyregulators, partly in- show.show. pre-I.P.O. properties.” He was us- controlledcontrolled bycluding Mr. by Mr.Mr.Dai’s Dai. Dai’s relatives, relatives, The Thecompany, company, Dinghe Dingheing Venture the Venture abbreviation for China’s got got an extremely an extremelyThe Times good reviewed good deal deal on copies on of Capital,Capital, got thegot shares the shares forofficial an for ex- an name, ex- the People’s Re- the the shares sharesletters of Ping ofwritten Ping An to Mr. An it hadDai. it hadIn one, public of China. CHINAFOTOPRESS/GETTYCHINAFOTOPRESS/GETTY IMAGES IMAGESbought.bought. InMa In Mingzhe,December December the 2002,chairman 2002, of tremelytremely good good price, price, the the records records Ping An, pleaded with Mr. Dai to The companyDai thatDaiXianglong, boughtXianglong, the who who has hashad had a long a long career career as aas regulator, a regulator, now nowDingheDinghe bought bought 66.5 66.5 million million show,show, paying paying a small a small fractionPing fraction An of stake of was controlled by approve an overseas stock of- whatwhat a large a large British British banka group bank had of had investmentheadsheads the firms, thecouncil council in- overseeing overseeing China’s China’s social social security security fund. fund. sharesshares from fering from Cosco, in Cosco, 1998, a saying, Chinese a Chinese “It would paidpaid per per share share just just two cluding two months months two set up by Mr. Dai’s state-ownedstate-ownedbe shippingrather shipping difficult giant, giant,to pay-raise pay- such a ing abouting about 40huge cents 40 amount cents a share, ofa moneyshare, after in after the do- earlier.earlier. The The company company paidson-in-law, paid $55 $55 Chenessman Feng,nessman ashad well hadbought as bought the Pingthe Ping An Anthatthat another another investment investment compa- compa- other firms associated with Mr. adjustingadjusting formestic afor latermarket.” a later stock stock split, split, millionmillion for oneitsfor Ping its of Ping theAn sharesworld’sAn shares on biggest onsharesshares financialand andthen, then, facinginstitutions, facing financial financial nyPing hadny hadalsoAn also boughtshares bought shares at shares such in Ping ina Pingsubstantial discount. Dec.Dec. 26, 2002.26, 2002. By 2007,By 2007, Che’s the the last relatives last and business as- accordingaccording to The public to publicregulatory filings filings and filings and a show a difficulties,difficulties, sold sold them them to a togroup a groupAn InsuranceAn Insurance at an at unusually an unusually low low that Dinghe, the company partly timetime the valuetheworth value of the anof investmenttheestimatedsociates, investment the $65 regulatory billion. filings Cosco did not return calls seekingreportreport incomment. a instate-run a state-run A newspaper. newspaper. show. thatthat included included Mr. Mr. Che’s Che’s friends friendspriceprice on the on samethe same day dayin 2002 in 2002 as as controlled by Mr. Dai’s relatives, was wasmade made public, public, the sharesthe shares were were It wasIt wasthe samethe same price price paid paid by Tai- by Tai- The decisionThe company, to grantand Dingheandrelatives, the relatives, waiver Venture but notbut came Mr.not Che.Mr. after Che. DinghespokeswomanDinghe Venture Venture for Capital. Capital.Ping That An That also did notgot return an extremely good deal on worthworth $3.1 $3.1billion. billion. Capital, got the shares for an ex- hong,hong, the companythethe company shares affiliated of affiliated Ping with An with it had Ping An executives andThe the The businessman insurer’s businessman “couldbankers “could not notcompany,calls.company, Tianjin Tianjin Taihong, Taihong,CHINAFOTOPRESS/GETTY was was IMAGES In itsIn investigation, its investigation, Thetremely The New Newgood price, the records the relativesthe relativesbought. of Mr. of Wen.Mr. In Wen. December 2002, laterlater partly partly controlled controlled by rela-by rela- YorkYork Times Timeshad found aggressively found no indication noshow, indication paying lobbiedafford a smallafford whatregulators, fraction what he has he of hascreated,Dai including created, Xianglong, so he so hewho hasMr. had Dai, a long 68, career has hadas a regulator,a long Thecareer now Theprice price Dingheas was a wasmuchgov bought much- lower lower 66.5than than million tivestives of Prime of Prime Minister Minister Wen Wen Jia- Jia- thatthat Mr. Mr. DaiMr. Dai had Dai. had been been awarewhat aware a of large ofhad British hadto sell to bank sellhis shares hadhis sharesheads all at all the once,” at council once,” ernmentoverseeing China’sregulator social andsecurity an fund. executivewhatwhat the Britishthe sharesat British state- bank from bank HSBC Cosco, HSBC paid a Chinesepaid paid per share just two months bao,bao, then then serving serving as vice as vice premier premierfor afor 10 apercent 10state-owned percent stake stake shippingin Ping in Ping giant,An An pay- his his relatives’ relatives’ activities,T he activities, Times or that orreviewed that copies of letters writ- owned companies. He held high-level ingpositions about 40 cents a share, after earlier. The company paid $55 nessman had boughtwith thewith oversightPing oversight An that of China’s anotherof China’s finan-investment finan- compa- any anylaw lawhad hadbeen been broken. broken. But Butthe the in Octoberin Octoberadjusting of that of that for year. a year.later HSBC stock HSBC split, ten to Mr. Dai.million In for one, its Ping Ma An Mingzhe, shares on sharesthe chair and then,- facingcialat thecial institutions. financial institutions.Agriculturalny In had late In also Bank late 2007, bought 2007, theof shares China, the in Ping China Pacific relativesrelatives appeared appeared to have to have made made paidpaid what what according at today’s at today’s to public exchange exchange filings and a Dec. 26, 2002. By 2007, the last difficulties, sold themshares toshares a Taihonggroup TaihongAn bought Insurance bought in at Ping inan unusually Ping low a fortunea fortune byman investing by investingof Ping in financialtime in An, financial the valuepleadedAn of Anthe insurer withinvestment insurer Mr. won Dai won anto anap- Insurance and, in the early 1990s,ratesrates would at would reportthe be $1.60 Bankbe in $1.60a a state-run share. a share. newspaper. that included Mr. Che’s friends price on the same day in 2002 as was made public, the shares were An wereAn were valued valued at $3.7 at $3.7billion. billion. It was the same price paid by Tai- servicesservices companiesprove companies an overoverseas over which which stock offering in 1998,and saying,relatives, but notof Mr. Communications, Che. Dinghe Venture where Capital. he oversawIt ThatisIt unclear is unclear Haitong why why Cosco Cosco would would worth $3.1 billion.exemptionexemption from from rules rules The The investments investments by by Dinghe Dinghe hong, the company affiliated with Mr. DaiMr. Daihad hadregulatory regulatory authority. authority. The businessman “could not company, Tianjin Taihong,have have wassold sold Ping Ping An sharesAn shares at such at such “It would be ratherIn its investigation, difficult to The raise New such a huge andSecurities, and Taihong Taihong the are arebank’s significant significant brokerage in in division.the relatives of Mr. Wen. In anotherIn another inst ance,instance, in Novem- in Novem- later partly controlled a bysubstantial a rela- substantial discount. discount. Cosco Cosco did did York Times requiring foundrequiring no indication a breakup. aafford breakup. what he has created, so he The price was much lower than ber ber 2002, 2002, Dingheamount Dinghe acquired of acquired money a big a in big the domestic market.” partpart becauseIn because1995, by tives helate by was oflate2002, Prime 2002, appointedBeijing Minister Beijingnot Wen head not returnJia- returnof callsChina’s calls seeking seeking com- com- that Mr. Dai had been aware of had to sell his shares all at once,” what the British bank HSBC paid regulatorsregulators had hadbao, granted then granted serving Ping Ping Anas vice An premier stakestake in Haitong in HaitongThe Securities, r egulatory Securities,his relatives’ a a filings activities, show or that central bank, onement. ment.of Athe spokeswoman Afor nation’s spokeswomana 10 percent forstake Pingfor in Ping An an unusualan unusual waiver with waiver tooversight rules to rules thatof China’s that finan- brokeragebrokerage that firm firm thatDinghe, that also any also fell the law fellun- hadcompany un- been broken. partly But the most powerful financialAn alsoAn also did posts.in notdid October returnnot Hereturn ofcalls. that calls. year. HSBC cial institutions. In late 2007, the der Mr.der Dai’sMr. Dai’s jurisdiction, jurisdiction,relatives accord- accord- appearedthe the spokeswoman, to have spokeswoman, made Jenny Jenny Lau, Lau,wouldwould have have forced forced the insurerthe insurer to to Mr. Mr.Dai, Dai, paid68, has68, what hashad at had a today’s long a long ca- exchange ca- controlled by Mr. Dai’s relatives, sell selloff someoff some divisions.shares steppeddivisions. Taihong Through- downThrough- bought in in December Ping 2002 ing ing to to the the brokerage brokeragea fortune firm’s firm’s by investingwrotewrote in inan infinancial e-mail. an e-mail. An insurer won an reerreer as a as governmentrates a government would be $1.60 regulator regulatora share. got an extremelyservices good companies deal over on the which out out the thelate late 1990s,An to 1990s, were thebecome valued thecompany company at mayor $3.7 billion. of Tianjin.It isT unclearhen, why Cosco would ShanghaiShanghai prospectus. prospectus. The The corporate corporate exemption records records re- re-from rules The investments byand Dinghe and an executive an executive at state-owned at state-owned By By 2007, 2007,shares just just after of after Ping Haitong’sMr. Haitong’s Dai An had it regulatory had bought. authority. waswas fighting fighting rulesin rules 2008, that that he would bec wouldamecompanies. companies.head ofhave He the heldsoldHe Na held Pinghigh-level- high-levelAn shares po- at po- such In anotherviewed instance,viewed byin Novem- The by The Times, Times, however, however, and Taihong are significant in a substantial discount. Cosco did publicpublic listing listing in Shanghai, in Shanghai, those those requiring a breakup.havehave required required apart breakup, a because breakup, a bymove latea move 2002,sitions Beijingsitions at the at the Agricultural Agricultural Bank Bank In Decemberber 2002, 2002, DingheDingheshowshow acquired that bought that Mr. a Mr.big Che, Che, his relativeshis relativesthatthat Ping Ping An executivesAntional executives Councilworried worried for Socialnot Security return calls seeking com- sharesshares were were worth worth about aboutstake $1 bil- in$1 Haitongbil-and andlongtime Securities, longtime business a business associates associates regulators had grantedof Ping China,of AnChina, Chinament. China Pacific A spokeswomanPacific Insurance Insurance for Ping 66.5 million shares from Cosco, a couldcould lead lead to bankruptcy. toan bankruptcy.Fund. unusual During waiver to much rules that of his career, lion,lion, according according to public to publicbrokerage filings. filings. firmset thatupset a alsoup complex a fell complex un- web web of compa- of compa- and,and, in the inAn the earlyalso earlydid 1990s, not 1990s,return at calls. the at the Later,Later, between betweenChinese 2007 2007 and state-owned and2010,der Mr.2010, Mr. Dai’s Mr. jurisdiction,shipping accord- gi- the spokeswoman, It Jenny isIt unclear is Lau, unclear whetherwouldhe whether developed have Mr. forced Mr.Wen theWen close insurerBank Bankties ofto Communications,with of Communications,Mr. senior Dai, 68, has wherehad wherea long ca- niesnies that that effectively effectively gave gave him himand and sell off some divisions. Through- Dai’sDai’s wife, wife, Ke Ke Yongzhen, Yongzhen,ing was to wasthe brokerage firm’s wrote in an e-mail.or Mr.or DaiMr. Daiintervened intervened on behalf on behalf of ofhe oversawhe oversawreer Haitong as Haitong a government Securities, Securities, regulator ant, paying about 40 thecents othersthe aothers share, control control after of Dinghe of adjustDinghe Ven-- Ven-Chinese leaders,out the including late 1990s, theMr. company Wen, who served chairwomanchairwoman on Haitong’s on Haitong’sShanghai board board prospectus. The corporatePing recordsPing An, An, butre- but in April in April 2002 2002 the thethe bank’sthe bank’s brokerageand brokerage an executive division. division. at state-owned ing for a later stock split,tureture Capital,according Capital, which which to made public made the fil thein-- in-with him onwas the fighting powerful rules that Central would Financial of supervisors.of supervisors. By 2007, just after Haitong’s viewed by The Times,companycompany however, was wasallowed allowed to reorga- to reorga- In 1995,In 1995, hecompanies. was he wasappointed He appointed held high-levelhead head po- public listingvestments in Shanghai,vestments in those Ping in Ping An andAn and Hai- Hai- have required a breakup, a move sitions at the Agricultural Bank A spokesmanA spokesmanings forand Mr.for a Mr. Daireport Dai and andin a state-run newspaper.show that Mr.It Che,nizeWork hisnize and relatives andCommission.retain retain thatits brokerage itsPing brokerage AnT heexecutives and commission andof worried China’sof China’s central oversaw central bank, bank, one oneof the of the shares were tong worthtong aboutSecurities. Securities. $1 bil- The The records records of China, China Pacific Insurance the Nationalthe Nationalwas Social Socialthe Security same Security Fund price Fund paid by Taihong,and the longtime com -businesstrustChina’s trustassociates division. division.banking, could Two Two lead yearssecurities to years bankruptcy. later, later, andnation’s insurancenation’s most most powerful regu powerful- financial financial lion, according to public filings. set up a complex web of compa- and, in the early 1990s, at the did did not notreturn return phone phone callsLater, calls seek- between seek-show 2007show thatand that2010, one Mr. one of the of thecompanies companiesPingPing An soldAn sold shares sharesIt is to unclear the to publicthe whether publicposts. Mr. posts.Wen He Bank Hestepped stepped of Communications, down down in De- in De- where pany affiliated with the relatives of Mr.nies Wen. that effectivelylators, gave him and and the biggest financial institutions. ing ing comment. comment. A spokeswoman A spokeswomanDai’s wife, later Ke later Yongzhen, nominated nominated was Mr. Mr.Che Cheto serve to servefor thefor thefirst first timeor time Mr. in HongDai in intervened Hong Kong. Kong. on behalf of he oversaw Haitong Securities, the others control of Dinghe Ven- cembercember 2002 2002 to become to become mayor mayor of of The pricechairwoman was much on on the Haitong’son lowerPingthe Ping An board than boardAn board what of supervi- of thesupervi- Big financialPing An,services but in Aprilcompanies 2002 the alsothe bank’ssought brokerage division. for Mr.for Mr. Che, Che, the the son-in-law, son-in-law, de- de- ture Capital, whichIn made 2007,In 2007, the after in- after a second a second stock stock list- list-Tianjin.Tianjin. Then, Then, in 2008, in 2008, he became he became niednied by e-mail byBritish e-mail that thatbank he had heof supervisors. HSBC had ever ever paidsors.sors. Hisfor His terma 10 term percent ran ran from from 2006stake 2006 to toingMr. ining Dai’s Shanghai, in Shanghai, aidcompany inthe navigating valuethe was value of allowed the of the tohead reorga-state’shead of the of tight theNationalIn 1995, Nationalreg he - Councilwas Councilappointed for for head vestments in Ping An and Hai- nize and retain its brokerage and heldheld a stake a stake in Ping in Ping An.A An. spokesman The The2009. for2009. Mr. Dai and company’scompany’s shares shares skyrocketed. skyrocketed.SocialSocial Security of Security China’s Fund. central Fund. Duringbank, During one of the in Ping An thein NationalOctober Social of Securitythat year. Fund HSBCtong Securities. paid ulatory The records environment.trust division. For Two instance, years later, Pingnation’s An’s most powerful financial spokeswomanspokeswoman said saidanother another busi- busi- TheThe Times Times reported reported last lastmonth monthToday,Today, Ping Ping An An is one is one of the of the what at today’sdid not exchange return phone rates calls seek- wouldshow be that $1.60 one of thelongtime companies chairman,Ping An sold Mr. shares Ma, to kept themuch publicmuch a oftelephone his ofposts. career,his career, He di he stepped- developed he developed down in De- ing comment. A spokeswoman later nominated Mr. Che to serve for the first time in Hongclose Kong.close ties tiescember with with senior2002 senior to become Chinese Chinese mayor of a share. for Mr. Che, the son-in-law, de- on the Ping An boardrectory of supervi- with InMr. 2007, Dai’s after name,a second as stockleaders, wellleaders, list- as including the including name Mr. Mr. Wen, Wen, who who CoscoCosco Tianjin. Then, in 2008, he became A LucrativeA Lucrative ItStock is Stock unclear Salenied Sale by e-mailwhy thatCosco he had would ever sors.have His sold term ranof from his 2006 wife to anding inson-in-law, Shanghai, the according valueserved ofserved the with to headwith himrecords of himon the the on National powerfulthe powerful Council for On Dec.On Dec. 26, 2002,26, 2002, Cosco, Cosco,held a global aa global stake in Ping An. The 2009. 246.4246.4 MILLION MILLION company’s shares skyrocketed.CentralCentral FinancialSocial Financial SecurityWork Work Commis- Fund. Commis- During spokeswoman said another busi- The Times reported last month Today, Ping An is one of the shippingshipping giant giant owned owned by the by the PING PINGAN SHARES AN SHARES sion.sion. The Themuch commission commission of his career, oversaw he oversaw developed close ties with senior Chinese ChineseChinese government, government, sold sold246.4 246.4 China’sChina’s banking,leaders, banking, includingsecurities securities Mr. and Wen, and who millionmillion shares shares of Ping of Ping An to AAn threeLucrative to three Stock Sale Cosco insuranceinsurance served regulators, regulators, with him and on andthe the powerful the companies,companies, including including two twowithOn Dec. with 26, 2002, Cosco, a global 246.4 MILLION biggestbiggest financialCentral financial institutions. Financial institutions. Work Commis- PING AN SHARES ties tiesto relatives to relatives of of shipping giant owned by the Big Big financial financialsion. The services services commission compa- compa- oversaw high-rankinghigh-ranking Chinese Chinese Chinese government, sold 246.4 niesnies also also soughtChina’s sought Mr. banking, Mr.Dai’s Dai’s securitiesaid inaid in and insurance regulators, and the officials.officials. millionTianjin sharesTianjin Taihong of Ping Taihong An to three DingheDinghe GuangzhouGuangzhou Hengde Hengde navigatingnavigating the state’sthe state’s tight tight regu- regu- companies,Investment Investmentincluding two with VentureVenture Capital Capital TradingTrading latorylatory environment. environment.biggest financial For Forinstance, institutions. instance, ties to relatives of Big financial services compa- OwnedOwned by by PartlyPartly controlled controlled by by ControlledControlled by the by brotherthe brother Ping Ping An’s An’s longtimenies longtime also chairman,sought chairman, Mr. Dai’sMr. Mr. aid in high-ranking Chinese Ma, Ma, kept kept a telephone a telephone directory directory officials.businesswomanbusinesswoman Duan DuanTianjin Taihongrelativesrelatives of Dai of Dai Dingheof Leeof LeeShau Shau Kee,Guangzhou Kee, the the Hengde navigating the state’s tight regu- Weihong,Weihong, and andlater later InvestmentXianglong,Xianglong, the formerthe formerVenture CapitalHongHong Kong Kong property property Trading withwith Mr. Mr. Dai’slatory Dai’s name, environment. name, as well as For well as instance, as partlypartly by the by relativesthe relatives Ownedcentralcentral by bank bank chief chief whoPartly who controlled tycoontycoon by who whocontrolsControlled controls by thethe brother the name name ofPing his of An’s wife his longtime wife and and son-in- chairman, son-in- Mr. law, law, according accordingMa, kept to a records to telephone records re- directory re- of Primeof Prime Minister Minister Wen Wen businesswoman had hadoversightDuan oversight of ofrelatives of HendersonDai Henderson Landof Lee Land Shau Kee, the viewedviewed by with Theby The Mr.Times Dai’sTimes and name, andan in-asan well in- as Jiabao.Jiabao. Weihong,insurance andinsurance later companies. companies.Xianglong, the formerDevelopment.Development. Hong Kong property partly by the relatives central bank chief who tycoon who controlsterviewterview withthe with a nameformer a former of staff his wifestaff assist- and assist- son-in- law, according to records re- of Prime Minister Wen had oversight of Henderson Land ant toant Mr. to Ma.Mr.viewed Ma. by The Times and an in- Jiabao. insurance companies. Development.In addition,In addition, Li Chunyan, Li Chunyan, who who Dec.Dec. 26, 200226, 2002 79.9 79.9MILLION MILLION 66.5 66.5MILLION MILLION 100 MILLION100 MILLION terview with a former staff assist- InitialInitial number number SHARESSHARES = = SHARESSHARES = = SHARESSHARES = = onceonce ran ranPingant Ping toAn’s Mr. An’s BeijingMa. Beijing office, office, In addition, Li Chunyan, who of sharesof shares Dec. 26,$65 2002 $65million million 79.9 MILLION$55 $55million million 66.5 MILLION $82 $82million million100 MILLIONsaidsaid last lastmonth month in a intelephone a telephone in- in- SHARES = SHARES = SHARES =terviewterview thatonce that he ran had he Ping hadset An’s upset meet- Beijingup meet- office, (Value(Value in in Initial number of shares $65 million $55 million $82 millioningsings between betweensaid Mr.last month Mr. Ma Ma and in a andtelephone rela- rela- in- terview that he had set up meet- today'stoday's prices) prices) (Value in tivestives of Mr. ofings Mr. Dai, between Dai, including including Mr. Ma his and his rela- today's prices) son-in-law,son-in-law, tivesMr. Che.Mr. of Che. Mr. Dai, including his “I wouldn’t“I wouldn’tson-in-law, say say IMr. introduced Che. I introduced In 2003,In 2003, Ping Ping An had An hada a them,them, but but I “I brought Iwouldn’t brought them,” say them,” I introduced he he two twofor one for onestock stock split, split, In 2003, Ping An had a said,said, declining decliningthem, tobut give toI brought give details. details. them,” he two for159.8 one 159.8stock MILLION MILLIONsplit, 132.9132.9 MILLION MILLION 200 MILLION200 MILLION meaningmeaning that thatall all SHARESSHARES 159.8 MILLIONSHARESSHARES 132.9 MILLION SHARESSHARES 200 MILLION“I’m“I’m just justsaid, a small a declining small potato, potato, to give you details.you meaning that all shareholdersshareholders doubled doubled SHARES SHARES SHARESknow.”know.” He “I’m added,He added, just “I’m a small“I’m very very potato, fa- fa- you shareholders doubled know.” He added, “I’m very fa- theirtheir number number of shares. of shares.their number of shares. miliarmiliar with with miliarthe familythe with family the of familyMr. of Dai.”Mr. of Mr.Dai.” Dai.” Later,Later, at theLater, at theNational at National the National Council Council Council for Socialfor Social Securityfor SocialSecurity Fund,Security Fund, Mr. Fund, Mr.Dai Mr.Dai Dai began overseeing a huge fund Peak share beganbegan overseeing overseeing a huge a huge fund fund PeakPeak share share that has acquired stakes in Hai- value, 2007 thatthat has has acquired acquired stakes stakes in Hai- in Hai- value,value, 2007 2007 tongtong and and Pingtong Ping An.and An.Ping Last Last An. Septem- Last Septem- Septem- It’s unclearIt’s unclear if the if the It’s unclear if the ber, the government-controlled $3.7 billion $3.1 billion $4.6 billionber, ber, the the government-controlled government-controlled companies$3.7 held$3.7 billion their billion $3.1$3.1 billion billion $4.6$4.6 billion billion social security fund said it would companiescompanies held held their their entire stakes until 2007, socialsocial security security fund fund said said it would it would entireentire stakes stakes until until 2007, 2007, allocate $3.6 billion to a group of but most of the shares allocateallocate $3.616 $3.6 billion Chinese billion to private a togroup a equitygroup of funds,of but mostbut most of the of sharesthe shares were still held by them or 16 Chinese16 Chineseincluding private private New equity equityHorizon funds, funds,Capital, a werewere still heldstill held by them by them or in or affiliated companies. includingincluding Newfund New Horizon whose Horizon Capital, founders Capital, a include a in affiliatedin affiliated companies. companies. fundfund whose whoseWen foundersYunsong, founders the include only include son of the Source: Ping An prospectus; corporate registration filings. THE NEWWen YORKWen TIMESYunsong, Yunsong,prime the minister. onlythe only son sonof the of the Source:Source: Ping AnPing prospectus; An prospectus; corporate corporate registration registration filings. filings. THE NEWTHE YORK NEW TIMESYORK TIMESprimeprime minister. minister. Nxxx,2012-12-31,A,003,Bs-BW,E1_K

K THE NEW YORK TIMES, MONDAY, DECEMBER 31, 2012 N A3

GILLES SABRIE FOR THE NEW YORK TIMES The Ping An International Finance Center, being built in Shenzhen. Ping An is among the world’s biggest financial institutions. Chinese Regulator’s FamilyReaps Insurance Profit

world’s biggest financial institu- From Page A1 tions, worth an estimated $65 bil- tion, these transactions feed into lion. a problematic perception that is The decision to grant the waiv- widespread in the P.R.C.: the rel- er came after Ping An executives atives of China’s highest officials and the insurer’s bankers had ag- are given privileged access to gressively lobbied regulators, in- pre-I.P.O. properties.” He was us- cluding Mr. Dai. ing the abbreviation for China’s The Times reviewed copies of official name, the People’s Re- letters written to Mr. Dai. In one, public of China. Ma Mingzhe, the chairman of The company that bought the Ping An, pleaded with Mr. Dai to Ping An stake was controlled by approve an overseas stock of- a group of investment firms, in- fering in 1998, saying, “It would cluding two set up by Mr. Dai’s be rather difficult to raise such a son-in-law, Che Feng, as well as huge amount of money in the do- other firms associated with Mr. mestic market.” Che’s relatives and business as- The regulatory filings show sociates, the regulatory filings that Dinghe, the company partly show. controlled by Mr. Dai’s relatives, The company, Dinghe Venture got an extremely good deal on Capital, got the shares for an ex- the shares of Ping An it had tremely good price, the records CHINAFOTOPRESS/GETTY IMAGES bought. In December 2002, show, paying a small fraction of Dai Xianglong, who has had a long career as a regulator, now Dinghe bought 66.5 million what a large British bank had heads the council overseeing China’s social security fund. shares from Cosco, a Chinese paid per share just two months state-owned shipping giant, pay- ing about 40 cents a share, after earlier. The company paid $55 nessman had bought the Ping An that another investment compa- adjusting for a later stock split, million for its Ping An shares on shares and then, facing financial ny had also bought shares in Ping according to public filings and a Dec. 26, 2002. By 2007, the last difficulties, sold them to a group An Insurance at an unusually low time the value of the investment report in a state-run newspaper. that included Mr. Che’s friends price on the same day in 2002 as was made public, the shares were It was the same price paid by Tai- and relatives, but not Mr. Che. Dinghe Venture Capital. That worth $3.1 billion. hong, the company affiliated with The businessman “could not company, Tianjin Taihong, was In its investigation, The New the relatives of Mr. Wen. later partly controlled by rela- York Times found no indication afford what he has created, so he The price was much lower than tives of Prime Minister Wen Jia- that Mr. Dai had been aware of had to sell his shares all at once,” what the British bank HSBC paid bao, then serving as vice premier his relatives’ activities, or that for a 10 percent stake in Ping An with oversight of China’s finan- any law had been broken. But the in October of that year. HSBC cial institutions. In late 2007, the relatives appeared to have made paid what at today’s exchange a fortune by investing in financial An insurer won an shares Taihong bought in Ping rates would be $1.60 a share. services companies over which An were valued at $3.7 billion. It is unclear why Cosco would Mr. Dai had regulatory authority. exemption from rules The investments by Dinghe have sold Ping An shares at such In another instance, in Novem- requiring a breakup. and Taihong are significant in a substantial discount. Cosco did ber 2002, Dinghe acquired a big part because by late 2002, Beijing not return calls seeking com- stake in Haitong Securities, a regulators had granted Ping An ment. A spokeswoman for Ping brokerage firm that also fell un- an unusual waiver to rules that An also did not return calls. der Mr. Dai’s jurisdiction, accord- the spokeswoman, Jenny Lau, would have forced the insurer to Mr. Dai, 68, has had a long ca- sell off some divisions. Through- ing to the brokerage firm’s wrote in an e-mail. reer as a government regulator out the late 1990s, the company Shanghai prospectus. The corporate records re- and an executive at state-owned By 2007, just after Haitong’s was fighting rules that would companies. He held high-level po- viewed by The Times, however, have required a breakup, a move public listing in Shanghai, those show that Mr. Che, his relatives sitions at the Agricultural Bank shares were worth about $1 bil- that Ping An executives worried of China, China Pacific Insurance and longtime business associates could lead to bankruptcy. lion, according to public filings. set up a complex web of compa- and, in the early 1990s, at the Later, between 2007 and 2010, Mr. It is unclear whether Mr. Wen Bank of Communications, where nies that effectively gave him and Dai’s wife, Ke Yongzhen, was or Mr. Dai intervened on behalf of he oversaw Haitong Securities, the others control of Dinghe Ven- chairwoman on Haitong’s board Ping An, but in April 2002 the the bank’s brokerage division. ture Capital, which made the in- of supervisors. company was allowed to reorga- In 1995, he was appointed head A spokesman for Mr. Dai and vestments in Ping An and Hai- nize and retain its brokerage and of China’s central bank, one of the the National Social Security Fund tong Securities. The records trust division. Two years later, nation’s most powerful financial did not return phone calls seek- show that one of the companies Ping An sold shares to the public posts. He stepped down in De- ing comment. A spokeswoman later nominated Mr. Che to serve for the first time in Hong Kong. cember 2002 to become mayor of for Mr. Che, the son-in-law, de- on the Ping An board of supervi- In 2007, after a second stock list- Tianjin. Then, in 2008, he became nied by e-mail that he had ever sors. His term ran from 2006 to ing in Shanghai, the value of the head of the National Council for held a stake in Ping An. The 2009. company’s shares skyrocketed. Social Security Fund. During spokeswoman said another busi- The Times reported last month Today, Ping An is one of the much of his career, he developed close ties with senior Chinese leaders, including Mr. Wen, who Cosco A Lucrative Stock Sale served with him on the powerful On Dec. 26, 2002, Cosco, a global 246.4 MILLION Central Financial Work Commis- shipping giant owned by the PING AN SHARES sion. The commission oversaw Chinese government, sold 246.4 China’s banking, securities and million shares of Ping An to three insurance regulators, and the companies, including two with biggest financial institutions. ties to relatives of Big financial services compa- high-ranking Chinese nies also sought Mr. Dai’s aid in officials. Tianjin Taihong Dinghe Guangzhou Hengde navigating the state’s tight regu- Investment Venture Capital Trading latory environment. For instance, Owned by Partly controlled by Controlled by the brother Ping An’s longtime chairman, Mr. businesswoman Duan relatives of Dai of Lee Shau Kee, the Ma, kept a telephone directory Weihong, and later Xianglong, the former Hong Kong property with Mr. Dai’s name, as well as partly by the relatives central bank chief who tycoon who controls the name of his wife and son-in- law, according to records re- of Prime Minister Wen had oversight of Henderson Land viewed by The Times and an in- Jiabao. insurance companies. Development. terview with a former staff assist- ant to Mr. Ma. Dec. 26, 2002 79.9 MILLION 66.5 MILLION 100 MILLION In addition, Li Chunyan, who Initial number SHARES = SHARES = SHARES = once ran Ping An’s Beijing office, of shares $65 million $55 million $82 million said last month in a telephone in- (Value in terview that he had set up meet- ings between Mr. Ma and rela- today's prices) tives of Mr. Dai, including his son-in-law, Mr. Che. “I wouldn’t say I introduced In 2003, Ping An had a them, but I brought them,” he two for one stock split, 159.8 MILLION 132.9 MILLION 200 MILLION said, declining to give details. meaning that all SHARES SHARES SHARES “I’m just a small potato, you shareholders doubled know.” He added, “I’m very fa- their number of shares. miliar with the family of Mr. Dai.” Later, at the National Council for Social Security Fund, Mr. Dai began overseeing a huge fund Peak share that has acquired stakes in Hai- value, 2007 tong and Ping An. Last Septem- It’s unclear if the ber, the government-controlled companies held their $3.7 billion $3.1 billion $4.6 billion social security fund said it would entire stakes until 2007, allocate $3.6 billion to a group of but most of the shares 16 Chinese private equity funds, were still held by them or including New Horizon Capital, a in affiliated companies. fund whose founders include Wen Yunsong, the only son of the Source: Ping An prospectus; corporate registration filings. THE NEW YORK TIMES prime minister. reviewed by The Times and an interview with a “I’m very familiar with the family of Mr. Dai.” former staff assistant to Mr. Ma. Later, at the National Council for Social Se- In addition, Li Chunyan, who once ran Ping curity Fund, Mr. Dai began overseeing a huge An’s Beijing office, said last month in a tele- fund that has acquired stakes in Haitong and phone interview that he had set up meetings be- Ping An. Last September, the government-con- tween Mr. Ma and relatives of Mr. Dai, including trolled social security fund said it would allocate his son-in-law, Mr. Che. $3.6 billion to a group of 16 Chinese private equi- “I wouldn’t say I introduced them, but I tyfunds, including New Horizon Capital, a fund brought them,” he said, declining to give details. whose founders include Wen Yunsong, the only “I’m just a small potato, you know.” He added, son of the prime minister. n CCCMMMYYYKKK Nxxx,2012-05-18,A,001,Bs-BK,E3Nxxx,2012-05-18,A,001,Bs-BK,E3Nxxx,2012-05-18,A,001,Bs-BK,E3

LateLateLate Edition Edition Edition C M Y K Nxxx,2012-05-18,A,001,Bs-BK,E3Today,Today,Today,anan an abundance abundance abundance of of sun, of sun, sun, nice, nice, nice, highhighhigh 73. 73. 73. Tonight,Tonight, Tonight,clear,clear,clear, cool cool cool once once once again,again,again, low low low 53. 53. 53.Tomorrow, Tomorrow, Tomorrow,plentyplentyplenty of of of sunshine,sunshine,sunshine, pleasant, pleasant, pleasant, a a bit abit bit warmer, warmer, warmer, Late Edition Today, an abundance of sun, nice, highhighhigh 79. 79. 79. Weather Weather Weather map, map, map, Page Page Page B16. B16. B16. high 73. Tonight, clear, cool once again, low 53. Tomorrow, plenty of sunshine, pleasant, a bit warmer, high 79. Weather map, Page B16. VOL.VOL.VOL. CLXI CLXI CLXI . . . . No.. No. . No. 55,775 55,775 55,775 ©© 2012 2012© 2012 The The TheNew New New York York York Times Times Times NEWNEWNEW YORK, YORK, YORK, FRIDAY, FRIDAY, FRIDAY, MAY MAY MAY 18, 18, 18, 2012 2012 2012 $2.50$2.50$2.50 VOL. CLXI . . No. 55,775 © 2012 The New York Times NEW YORK, FRIDAY, MAY 18, 2012 $2.50 China ‘Princelings’ Using ChinaChinaChina ‘Princelings’‘Princelings’ ‘Princelings’ UsingUsing UsingFamily Ties to Gain Riches

Leaders’ Relatives Take Key Business Posts FamilyFamilyFamily TiesTies Ties toto to GainGain Gain RichesRiches Riches— Spoils System Poses Risk to Party

By DAVID BARBOZA and SHARON LaFRANIERE SHANGHAI — The Hollywood who abused his power, even as Leaders’Leaders’Leaders’ RelativesRelatives Relatives TakeTake Take KeyKey Key BusinessBusiness Businessstudio DreamWorksPostsPosts Posts Animation his family members accumulated recently announced a bold move a substantial fortune. to crack China’s tightly protected But evidence is mounting that film industry: a $330 million deal the relatives of other current and ——— SpoilsSpoils Spoils SystemSystem System PosesPoses Poses RiskRisk Risk toto to PartyPartyto Party create a Shanghai animation former senior officials have also studio that might one day rival amassed vast wealth, often play- the California shops that turn out ing central roles in businesses hits like “Kung Fu Panda” and closely entwined with the state, “The Incredibles.” including those involved in fi- ByBy ByDAVID DAVID DAVID BARBOZA BARBOZA BARBOZA and and and SHARON SHARON SHARON LaFRANIERE LaFRANIERE LaFRANIEREWhat DreamWorks did not nance, energy, domestic security, showcase, however, was one of telecommunications and enter- SHANGHAISHANGHAISHANGHAIBy DAVID — — The —The BARBOZA The Hollywood Hollywood Hollywood and whoSHARONwhowho abused abused abused LaFRANIERE his his his power, power, power,its newest even even — evenand most as as important as tainment. Many of these so-called — Chinese partners: Jiang Mian- princelings also serve as middle- studiostudiostudio DreamWorks DreamWorks DreamWorks Animation Animation Animationhishishis family family family members members members heng,accumulated accumulated accumulated the 61-year-old son of Jiang men to a host of global companies SHANGHAI But evidenceZemin, is themounting former Communist thatand wealthythe relativestycoons eager to do recentlyrecentlyrecently announcedannounced announced aa boldbolda bold movemove moveaa substantial substantiala substantial fortune. fortune. fortune.Party leader and the most power- business in China. h e Hollywood studio DreamWorks Ani- ofButBut otherBut evidenceevidence evidence current isis mountingismountingful andmounting political former kingmaker thatthat that of seniorChina’s “Whenever officials there ishave something toto crack tocrack crack China’s China’s China’s tightly tightly tightly protected protected protected last two decades. profitable that emerges in the DADO RUVIC/REUTERS mation recentlyfilmfilm filmannounced industry: industry: industry: a a $330 $330aa $330 bold million million million move deal deal deal thethealsothe relatives relatives relativesamassed of of other ofother othervast current Thecurrent youngercurrentwealth, Mr.and and Jiang’sand often coups playingeconomy, they’ll central be at the front of Remembering a Horror have included ventures with the queue,” said Minxin Pei, an toto to create create create a a Shanghai a Shanghai Shanghai animation animation animationformerformerformer senior senior senior officials officials officialsMicrosoft have have have and also Nokia also also and over- expert on China’s leadership and Mejra Dzogaz, whoto lostcrack her husband, China’s three sons tightly and a grandson protected to the 1995 Srebrenica film in massacre,- inroles Potocari, in Bosnia. businesses In The sight of a closely clutch of state-backed entwinedprofessor ofwith government the at Hague,T it was Day 2 of the genocide trial of studioRatkostudiostudio Mladic, that that who that mightled might the might military one one oneunit day daythat day carried rival rival rival out theamassedamassed massacre.amassed Page vast vast A12. vast wealth, wealth, wealth,investment often often often vehiclesplay- play- play- that have Claremont McKenna College in dustry: a $330 millionthethe dealthe California California California to create shops shops shops a that thatShanghai that turn turn turn out out out ingingstate,ing central central central including roles roles roles in inmajor those in businesses businesses interests businesses involved in telecommuni- inCalifornia. finance, “They’ve ener gotten - into cations, semiconductors and con- private equity, state-owned en- animation studio thathitshits hitsmight like like like “Kung “Kung one “Kung Fuday Fu Fu Panda” Panda” rival Panda” the and and and closelycloselygy,closely domestic entwined entwined entwined security, with with struction with the the projects. the state, state,telecommunications state, terprises, natural resources and — Magnate Steps Cataloging Wounds of War to Help Heal Them That a dealmaker like Mr. you name it.” California shops that“The “Theturn“The Incredibles.” Incredibles.” out Incredibles.” hits like “Kung Fu includingincludingentertainment.including those those those involved involved JiangMany involved would be inof in included in fi-these fi- fi- in an un- so-calledFor example, prince Wen Yunsong,- His database is one part of a and diseases took which soldiers dertaking like that of Dream- the son of Prime Minister Wen WhatWhatWhat DreamWorks DreamWorks DreamWorks did did did not not notnance,nance,nance, energy, energy, energy, domestic domestic domestic security, security, security, Jiabao, heads a state-owned com- Into 2012 Fray vast store of information re- off duty, and for how long. He Works is almost a given in to- Panda” and “The Incredibles.” lings also serve as middlemen topany a hostthat boasts of that glob it will soon- By C. J. CHIVERS corded about the experiences of mappedtelecommunicationstelecommunicationstelecommunications where on a human body day’s and and China. and enter- enter-Analysts enter- say this is showcase,showcase,showcase, however, however, however, was was was one one one of of of be Asia’s largest satellite commu- On Wild Pitch FORT CAMPBELL, Ky. — To American combatants. But there bullets most often struck. how the Communist Party shares What DreamWorks did not showcase, how- tainment.tainment.altainment. companies Many Many Many of of andthese ofthese these wealthyso-called so-called so-called tycoonsnications eager operator. Presidentto do Hu those unfamiliaritsits itsnewest newest with newest a battle- — — and —andare and concernsmost most most important that important important the potential A year after he returned to the the spoils, allowing the relatives of senior leaders to cash in on one Jintao’s son, Hu Haifeng, once field’s bleak routine, Col. Michael lessons from such data could be states, Colonel Wirt and his data- ever, was one of its —newest— Chinese —Chinese Chinese — partners: partners: and partners: most Jiang Jiang Jiang impor Mian- Mian- Mian-- princelingsprincelingsbusinessprincelings also alsoin also China. serve serve serveof the as as biggest asmiddle- middle- middle-economic booms in managed a state-controlled firm By JIM RUTENBERG D. Wirt’s database could be read lost, because no one has yet base point to the promise and ob- history. that held a monopoly on security and JEFF ZELENY like a catalogheng,heng, heng, of horrors. the the the 61-year-old In61-year-old it,61-year-oldbrought the son informationson son of of Jiang ofJiang together Jiangstaclesmenmenmen related to to a toa tohost hosta studying host of of moreglobal ofglobal global companies companies companies tant — Chinesemore partners: than 500 American Jiang soldiers andMianheng, made it fully cohere. the “Whenever Asthere the scandal is oversomething Bo Xilai scanners profitable used in China’s air- Joe Ricketts, an up-by-the- than a decade of American war. ports, shipping ports and subway are subjectedZemin,Zemin, Zemin, to characteristic the the the former former Colonel former Wirt Communist Communist was Communist a brigade sur- andandand wealthy wealthy wealthy tycoons tycoons tycoonscontinues eager eager eager to reverberate,to to do todo do the au- bootstraps billionaire whose var- The amassed information on stations. 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China.Mr. Bo, a fallen leader who was brand brokerage firm in Omaha, amounts to the most detailed guo, the party’s second-ranking munist Party leaderFaces are andsmacked thewith shrap- mosteffort powerfulin 2010 and 2011 to dislodgepo- front of the queue,”one of 25 memberssaid ofMinxin China’s rul- Pei, an expert a baseball team in Chicago, herds fulful fulpolitical political political kingmaker kingmaker kingmaker of of China’s ofChina’s China’s “WheneverContinued“Whenever“Whenever on Page A3there there there ising is Politburo, something issomething something as a rogue operator Continued on Page A14 of bison in Wyoming and a start- nel, legs are blasted away near the Taliban from their rural up news Web site in New York, knees, bulletslastlastlast two passtwo two decades. throughdecades. decades.stronghold along the Arghandab profitableprofitableprofitable that that that emerges emerges emerges in in in the the the liticalDADO DADOkingmakerDADO RUVIC/REUTERS RUVIC/REUTERS RUVIC/REUTERS of China’s last two decades. on China’s leadership and professor of govern- wanted to be a player in the 2012 young men’s abdomens. 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Bosnia. a $10 Inmil-In In TheThedreds The more begin journeys home, ed soldiers, and to inform him of True to Its Old Self, Only Better Don’t Flaunt It lion advertisingoversight campaign of linking a clutchsometimessight toofsight treatmentsight state-backed of of that a of a clutchwill aclutch clutchtheir ofprognosis of investment state-backed of state-backed state-backed and whereabouts professorprofessorownedprofessor enterprises, of of of government government government natural at at at resources — you Hague,Hague,Hague, it it was wasit was Day Day Day 2 2 of of2 theof the the genocide genocide genocide trial trial trial of of Ratkoof Ratko Ratko Mladic, Mladic, Mladic, who who who led led led the the the military military military unit unit unit that that that carried carried carried out out out the the the massacre. massacre. massacre.President Page ObamaPage Page toA12. A12. the A12. incendi- last the rest of their lives. in the medical system. 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To us it seemed aa baseball baseballa baseball team team team in in Chicago, inChicago, Chicago, herds herds herds With her doe eyes, cascade of MICHAEL OCHS ARCHIVES/GETTY IMAGES Thursday that on the eve of its hair and sinuous dance moves, vades 21st-century pop. Her own were appalled by the idea. time to at least loosen up thethethe Taliban Taliban Taliban from from from their their their rural rural rural ContinuedContinuedContinuedily members on on onPage Page Page A3 A3 accumulated A3Donna Summeringinging Politburo, Politburo,in 1978.Politburo, a substantial as as aas a rogue roguea rogue fortune. operator operator operator ContinuedContinuedMuchContinued of on onthe onPage Page Pageincome A14 A14 A14 earned stockby market families debut it was of invit- nel,nel,nel, legs legs legs are are are blastedblasted blasted awayaway away nearnear near Ms. Summer became the queen recordings have been sampled Barnes spent years obsessively Barnes’s straitjacketed displays, ofof bison ofbison bison in in Wyoming inWyoming Wyoming and and and a a start- start-a start- ing employees to a hackathon, or knees,knees,knees, bullets bullets bullets pass pass pass through through throughstrongholdstrongholdstronghold along along along the the the Arghandab Arghandab Arghandab of disco — the music’s glamorous by, among others, Beyoncé, the arranging his installation cheek- wonderful as they often were. upup up news news news Web Web Web site site site in in Newin New New York, York, York, public face — as well as an idol She riffled through styles as di- Pet Shop Boys, Justice and Nas. by-jowl in the mansion in Lower And why go to the trouble of mov- Continued on Page B7 youngyoungyoung men’s men’s men’s abdomens. abdomens. abdomens. Vehicles Vehicles VehiclesRiver.River.River. His His His database database database was was was part part part offi- offi- offi- with a substantial gay following. verse as funk, electronica, rock Ms. Summer won Grammy Merion, Pa., that he built for the ing the collection to a more acces- wantedwantedwanted to to be tobe bea a player playera player in in the inthe the 2012 2012 2012 Her voice, airy and ethereal or and torch song as she piled up 14 Awards for dance music, R&B, purpose and opened in 1925, and sible location when the galleries election.election.election. On On On Thursday Thursday Thursday he he he was, was, was,rollrollroll over, over, over, crushing crushing crushing bones. bones. bones. Ear- Ear- Ear-cialcialcial record, record, record, part part part personal personal personal re- re- re- brightly assertive, sailed over Top 10 singles in the United rock and gospel. Her recorded he stipulated that, after he died, it were not going to be any bigger? 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Residents of the isolated Mosquito The Senate voted to confirm two nomi- Win or lose, John PresidentPresidentPresident Obama Obama Obama to to theto the the incendi- incendi- incendi- Coast of Honduras have burned down nees for the Federal Reserve Board of TortorellaInIn ofIn the Silicon Silicon Silicon Valley Valley Valley aryaryary race-infused race-infused race-infused statements statements statements of of of EachEachEach waswas was listedlisted listed inin aina smallsmalla small butbut but ToTo Tothis, this, this, Colonel Colonel Colonel Wirt Wirt Wirt added added added lay- lay- lay- government buildings and are demand- Governors, overcoming Republican ob- Rangers conducts ing that American drug agents leave the jections and bringing the seven-mem- postgame news hishishis former former former pastor, pastor, pastor, thethe the Rev. Rev. Rev. Jere-Jere- Jere-meticulousmeticulousmeticulous computer computer computer entry entry entry by by byersersers of of information. ofinformation. information. He He He document- document- document- area immediately. PAGE A5 ber board to full strength for the first conferences that miahmiahmiah A. A. A. Wright Wright Wright Jr., Jr., Jr., brought brought broughtColonelColonelColonel Wirt, Wirt, Wirt, a a doctor adoctor doctor intent intent intent on on oneded ed whichwhich which weaponsweapons weapons causedcaused caused whichwhich which time since 2006. PAGE B3 are short — one NEW YORK A24-28 lasted 16 secondsByBy BySOMINI SOMINI SOMINI SENGUPTA SENGUPTA SENGUPTA waveswaveswaves ofof denunciationofdenunciation denunciation fromfrom from MittMitt Mittdocumentingdocumentingdocumenting how how how soldiers soldiers soldiers were were werewounds.wounds.wounds. He He He tried tried tried to to to record record record in- in- in- Bribery Case May Widen — antagonistic and Mary Kennedy Is Mourned Wal-Mart suggested in a regulatory fil- invariablyMENLOMENLO MENLOdevoid PARK, PARK, PARK, Calif. Calif. Calif. — — — Romney,Romney,Romney, the the the Obama Obama Obama campaign campaign campaignwoundedwoundedwounded or or or sickened, sickened, sickened, how how how they they theycreasedcreasedcreased or or decreasedor decreased decreased risk risk risk factors factors factors Robert F. Kennedy Jr. said his es- ing that the scope of an internal investi- of revealing re- andandand much much much of of the ofthe the rest rest rest of of the ofthe the politi- politi- politi-werewerewere treated treated treated and and and how how how they they they fared. fared. fared.—— whether —whether whether the the the victim victim victim was was was wear- wear- wear- tranged wife had “a lot of agony” in her gation into bribery accusations had wid- sponses.WealthWealthWealth PAGE is B13is here ishere here if if you youif you know know know where where where life. She had been suffering from alco- ened beyond the huge retailer’s subsid- toto find tofind find it. it. it. calcal calworld. world. world. ForForFor thosethose those seekingseeking seeking toto understandtounderstand understandinginging larger larger larger or or smalleror smaller smaller body body body armor, armor, armor, holism and depression. PAGE A25 iary in Mexico. PAGE B1 WEEKEND C1-32 HighlightingHighlightingHighlighting thethe the perilsperils perils ofof mix-ofmix- mix-warwarwar and and and how how how best best best to to tosurvive survive survive it, it, it,whetherwhetherwhether a a bomb-sniffing bomb-sniffinga bomb-sniffing dog dog dog was was was FabulousFabulousFabulous home home home theaters theaters theaters are are are Already a Crowd Pleaser NATIONAL A16-22 The True Stars at Cannes inginging partisan partisan partisan politics politics politics and and and corpo- corpo- corpo-thethethe doctor doctor doctor on on on his his his own own own initiative initiative initiativepresent,present,present, when when when a a tourniquet atourniquet tourniquet was was was A month before his planned walk across If the movies that win acclaimtuckedtuckedtucked at into into into the the the basements basements basements of of of Niagara Falls, Nik Wallenda, a descend- Edwards Case in Jury’s Hands France’s Cannes Film Festival have lit- rateraterate citizenship, citizenship, citizenship, the the the reverbera- reverbera- reverbera-createdcreatedcreated an an an evidence-based evidence-based evidence-based tool tool toolapplied.applied.applied. ant of the Flying A jury began deliberating the fate of the tle impact on the box office,plainplain plainthey remainsuburban suburban suburban houses. houses. houses. Bespoke Bespoke Bespoke ContinuedContinuedContinued on on onPage Page Page A20 A20 A20 andandand a a possible possiblea possible model. model. model. HeHeHe recorded recorded recorded which which which accidents accidents accidents Wallendas family former presidential candidate John Ed- influential, and for goodjeansjeans reason.jeans PAGE that that C1 that start start start at at at $1,200 $1,200 $1,200 can can can be be be of circus perform- wards. His lawyer argued that he com- ers, practices in detecteddetecteddetected only only only by by by a a tiny tinya tiny red red red logo logo logo mitted a wrong, but did not commit a EDITORIAL, OP-ED A30-31 the town twice a crime. PAGE A16 onon on the the the button. button. button. The The The hand-painted hand-painted hand-painted day, across the David Brooks PAGE A31 street from a mini- Details Released in Killing ItalianItalianItalian bicycles bicycles bicycles that that that flash flash flash across across across DONNADONNADONNA SUMMER, SUMMER, SUMMER, 1948-2012 1948-2012 1948-2012 mart, with dozens Police tried frantically to save Trayvon of onlookers and a Martin after he was shot by a neighbor- SiliconSiliconSilicon Valley Valley Valley on on onSaturday Saturday Saturday morn- morn- morn- hot dog stand near- hood watch volunteer, documents re- U(D54G1D)y+$!#!\!=!$ingsingsings have have have become become become the the the new new new Ferra- Ferra- Ferra- by. PAGE A24 leased in the caseFREDFRED show.FRED R. R. CONRAD/THE CONRAD/THER. CONRAD/THEPAGE A16 NEW NEW NEW YORK YORK YORK TIMES TIMES TIMESriri ri — — — and and and only only only the the the cognoscenti cognoscenti cognoscenti TheTheThe QueenQueen Queen ofof of Disco,Disco, Disco, WhoWho Who TranscendedTranscended Transcended thethe the EraEra EraTheTheThe new new new Barnes Barnes Barnes Foundation, Foundation, Foundation, in in ain a new newa new shell shell shell in in Philadelphia. inPhiladelphia. Philadelphia. couldcouldcould imagine imagine imagine that that that they they they cost cost cost moremoremore than than than $20,000. $20,000. $20,000. “She“She“She Works Works Works Hard Hard Hard for for forthe the the Money.” Money.” Money.” EvenEvenEven at at Facebook, atFacebook, Facebook, ground ground ground zero zero zero InIn theIn the the late late late ’70s ’70s ’70s she she she had had had three three three dou- dou- dou- PHILADELPHIAPHILADELPHIAPHILADELPHIA — — The —The The tendancetendancetendance and and and public public public hours hours hours im- im- im- forfor for the the the nouveau nouveau nouveau tech tech tech riche, riche, riche, peer peer peer ByBy ByJON JON JON PARELES PARELES PARELES blebleble albums albums albums in in a ina row rowa row that that that reached reached reachedBarnesBarnesBarnes Foundation’s Foundation’s Foundation’s move move move from from from posedposedposed by by byzoning zoning zoning restrictions restrictions restrictions — — — pressurepressurepressure dictates dictates dictates that that that consump- consump- consump- DonnaDonnaDonna Summer, Summer, Summer, the the the multi- multi- multi- No.No.No. 1, 1, and 1,and and each each each sold sold sold more more more than than than a a asuburbansuburbansuburban Philadelphia Philadelphia Philadelphia to to the tothe the cen- cen- cen-announcedannouncedannounced plans plans plans to to relocate. torelocate. relocate. tiontiontion be be keptbe kept kept on on onthe the the down down down low. low. low. million-sellingmillion-sellingmillion-selling singer singer singer and and and song- song- song- millionmillionmillion copies. copies. copies. terterter of of the ofthe the city city city caused caused caused art art art lovers lovers lovers ManyManyMany people, people, people, including including including a a group groupa group “The“The“The message message message here here here is, is, is, ‘Keep ‘Keep ‘Keep writerwriterwriter whose whose whose hits hits hits captured captured captured both both both HerHerHer combination combination combination of of of a a church- achurch- church-lotslotslots of of worry. ofworry. worry. thatthatthat sued sued sued to to stop tostop stop the the the move, move, move, were were were shippingshippingshipping product,’” product,’” product,’” said said said a a Face- aFace- Face- thethethe giddy giddy giddy hedonism hedonism hedonism of of the of the the 1970s 1970s 1970s rootedrootedrooted voice voice voice and and and up-to-the- up-to-the- up-to-the- DevoteesDevoteesDevotees of of this ofthis this great great great polyglot polyglot polyglot suresuresure that that that it it could couldit could only only only desecrate desecrate desecrate bookbookbook executive executive executive who who who requested requested requested discodiscodisco era era era and and and the the the feisty feisty feisty female female female minuteminuteminute dance dance dance beats beats beats was was was a a tem- atem- tem- collection,collection,collection, heavy heavy heavy with with with thisthisthis singular singular singular institution. institution. institution. anonymityanonymityanonymity while while while discussing discussing discussing in- in- in- solidaritysolidaritysolidarity of of the ofthe the early early early 1980s, 1980s, 1980s, died died died plateplateplate for for for 1970s 1970s 1970s disco, disco, disco, and, and, and, with with withROBERTAROBERTAROBERTARenoir,Renoir,Renoir, Cézanne Cézanne Cézanne and and and Others,Others,Others, myself myself myself included, included, included, did did did ternalternalternal matters. matters. matters. “If “If “Ifsomeone someone someone buys buys buys onon on ThursdayThursday Thursday atat herather her homehome home inin Na-inNa- Na- herherher producers producers producers Giorgio Giorgio Giorgio Moroder Moroder Moroder Matisse,Matisse,Matisse, which which which the the the notnotnot object object object to to the tothe the move move move per per per se, se, se,but but but aa fancy fancya fancy car car car and and and posts posts posts a a picture picturea picture of of of ples,ples,ples, Fla. Fla. Fla. She She She was was was 63. 63. 63. andandand Pete Pete Pete Bellotte, Bellotte, Bellotte, she she she pioneered pioneered pioneered SMITHSMITHSMITH omnivore omnivoreomnivore art art art shopper shopper shopper feltfeltfelt that that that faithfully faithfully faithfully reproducing reproducing reproducing it,it, it, they they they get get get ridiculed ridiculed ridiculed and and and berat- berat- berat- electronicelectronicelectronic dance dance dance music music music with with with the the the TheTheThe cause cause cause was was was cancer, cancer, cancer, her her her pub- pub- pub- AlbertAlbertAlbert C. C. Barnes C.Barnes Barnes thethethe old old old Barnes Barnes Barnes in in the inthe the new new new space, space, space, ed.”ed.”ed.” licist,licist,licist, Brian Brian Brian Edwards, Edwards, Edwards, said. said. said. synthesizersynthesizersynthesizer pulse pulse pulse of of of “I “I “I Feel Feel Feel ARTARTART amassedamassedamassed between between between 1912 1912 1912asas promisedas promised promised by by by the the the trustees, trustees, trustees, was was was REVIEWREVIEWREVIEW TheTheThe company company company disclosed disclosed disclosed on on on Love”Love”Love” in in 1977,in 1977, 1977, a a sound asound sound that that that per- per- per- andandand his his his death death death in in 1951, in1951, 1951, aa terrible terriblea terrible idea. idea. idea. To To Tous us itus it seemed seemed it seemed WithWithWith her her her doe doe doe eyes, eyes, eyes, cascade cascade cascade of of of MICHAELMICHAELMICHAEL OCHS OCHS OCHS ARCHIVES/GETTY ARCHIVES/GETTY ARCHIVES/GETTY IMAGES IMAGES IMAGES ThursdayThursdayThursday that that that on on on the the the eve eve eve of of of its its its hairhairhair and and and sinuous sinuous sinuous dance dance dance moves, moves, moves, vadesvadesvades 21st-century 21st-century 21st-century pop. pop. pop. Her Her Her own own ownwerewerewere appalled appalled appalled by by bythe the the idea. idea. idea. timetimetime to to at toat least atleast least loosen loosen loosen up up up DonnaDonnaDonna Summer Summer Summer in in 1978.in 1978. 1978. stockstockstock market market market debut debut debut it it was itwas was invit- invit- invit- Ms.Ms.Ms. Summer Summer Summer became became became the the the queen queen queen recordingsrecordingsrecordings have have have been been been sampled sampled sampledBarnesBarnesBarnes spent spent spent years years years obsessively obsessively obsessively Barnes’sBarnes’sBarnes’s straitjacketed straitjacketed straitjacketed displays, displays, displays, inginging employees employees employees to to a toa hackathon, hackathon,a hackathon, or or or ofof disco ofdisco disco — — the— the the music’s music’s music’s glamorous glamorous glamorous by,by, by, among among among others, others, others, Beyoncé, Beyoncé, Beyoncé, the the thearrangingarrangingarranging his his his installation installation installation cheek- cheek- cheek- wonderfulwonderfulwonderful as as theyas they they often often often were. were. were. publicpublicpublic face face face — — —as as as well well well as as as an an an idol idol idol SheSheShe riffled riffled riffled through through through styles styles styles as as di-as di- di-PetPetPet Shop Shop Shop Boys, Boys, Boys, Justice Justice Justice and and and Nas. Nas. Nas. by-jowlby-jowlby-jowl in in the inthe the mansion mansion mansion in in Lower inLower Lower AndAndAnd why why why go go goto to the tothe the trouble trouble trouble of of mov- ofmov- mov- ContinuedContinuedContinued on on onPage Page Page B7 B7 B7 withwithwith a a substantial substantiala substantial gay gay gay following. following. following.verseverseverse as as as funk, funk, funk, electronica, electronica, electronica, rock rock rock Ms.Ms.Ms. Summer Summer Summer won won won Grammy Grammy GrammyMerion,Merion,Merion, Pa., Pa., Pa., that that that he he hebuilt built built for for forthe the the inginging the the the collection collection collection to to a toa more morea more acces- acces- acces- HerHerHer voice, voice, voice, airy airy airy and and and ethereal ethereal ethereal or or orandandand torch torch torch song song song as as asshe she she piled piled piled up up up14 14 14AwardsAwardsAwards for for for dance dance dance music, music, music, R&B, R&B, R&B,purposepurposepurpose and and and opened opened opened in in 1925, in1925, 1925, and and and siblesiblesible location location location when when when the the the galleries galleries galleries brightlybrightlybrightly assertive, assertive, assertive, sailed sailed sailed over over overTopTopTop 10 10 10 singles singles singles in in in the the the United United Unitedrockrockrock and and and gospel. gospel. gospel. Her Her Her recorded recorded recordedhehe hestipulated stipulated stipulated that, that, that, after after after he he hedied, died, died, it it itwerewerewere not not not going going going to to be tobe anybe any any bigger? bigger? bigger? AA RICH RICHA RICH START START STARTFacebookFacebookFacebook sold sold sold 421 421 421 dancedancedance floors floors floors and and and leapt leapt leapt from from from ra- ra- ra-States,States,States, among among among them them them “Love “Love “Love to to tocatalogcatalogcatalog spans spans spans the the the orgasmic orgasmic orgasmicshouldshouldshould remain remain remain exactly exactly exactly as as itas it was. was.it was. AndAndAnd yet yet yet the the the new new new Barnes Barnes Barnes p provesroves provesmillionmillionmillion shares shares shares for for for$38 $38 $38 each, each, each, rais- rais- rais- diosdiosdios from from from the the the mid-’70s mid-’70s mid-’70s well well well into into intoLoveLoveLove You You You Baby,” Baby,” Baby,” “Bad “Bad “Bad Girls,” Girls,” Girls,”moansmoansmoans of of of her her her first first first hit, hit, hit, “Love “Love “Love to to to InIn 2002In 2002 2002 the the the foundation’s foundation’s foundation’s board board board allall allof of us ofus wrong.us wrong. wrong. Against Against Against all all allodds, odds, odds, inginging $16 $16 $16 billion billion billion and and and valuing valuing valuing the the the thethethe ’80s. ’80s. ’80s. “Hot“Hot“Hot Stuff,” Stuff,” Stuff,” “Last “Last “Last Dance” Dance” Dance” and and and ContinuedContinuedContinued on on onPage Page Page A23 A23 A23 —— constrained —constrained constrained by by bylimits limits limits on on onat- at- at- ContinuedContinuedContinued on on onPage Page Page A18 A18 A18 companycompanycompany at at $104 at$104 $104 billion. billion. billion. PAGE PAGE PAGE B1 B1 B1

INTERNATIONALINTERNATIONALINTERNATIONAL A4-14 A4-14 A4-14 BUSINESSBUSINESSBUSINESS DAY DAY DAY B1-9 B1-9 B1-9 SPORTSFRIDAYSPORTSFRIDAYSPORTSFRIDAY B10-16 B10-16 B10-16 AngerAngerAnger Rises Rises Rises After After After Drug Drug Drug Sweep Sweep Sweep SenateSenateSenate Clears Clears Clears Fed Fed Fed Nominees Nominees Nominees AA CoachA Coach Coach of of ofFew Few Few Words Words Words ResidentsResidentsResidents of of the ofthe the isolated isolated isolated Mosquito Mosquito Mosquito TheTheThe Senate Senate Senate voted voted voted to to confirm toconfirm confirm two two two nomi- nomi- nomi- WinWinWin or or lose,or lose, lose, John John John CoastCoastCoast of of Honduras ofHonduras Honduras have have have burned burned burned down down down neesneesnees for for forthe the the Federal Federal Federal Reserve Reserve Reserve Board Board Board of of of TortorellaTortorellaTortorella of of the ofthe the governmentgovernmentgovernment buildings buildings buildings and and and are are are demand- demand- demand- Governors,Governors,Governors, overcoming overcoming overcoming Republican Republican Republican ob- ob- ob- RangersRangersRangers conducts conducts conducts inginging that that that American American American drug drug drug agents agents agents leave leave leave the the the jectionsjectionsjections and and and bringing bringing bringing the the the seven-mem- seven-mem- seven-mem- postgamepostgamepostgame news news news areaareaarea immediately. immediately. immediately. PAGEPAGEPAGE A5 A5 A5 berberber board board board to to full tofull full strength strength strength for for forthe the the first first first conferencesconferencesconferences that that that timetimetime since since since 2006. 2006. 2006. PAGEPAGEPAGE B3 B3 B3 areareare short short short — — one —one one NEWNEWNEW YORK YORK YORK A24-28 A24-28 A24-28 lastedlastedlasted 16 16 seconds 16seconds seconds BriberyBriberyBribery Case Case Case May May May Widen Widen Widen —— antagonistic —antagonistic antagonistic and and and MaryMaryMary Kennedy Kennedy Kennedy Is Is Mourned IsMourned Mourned Wal-MartWal-MartWal-Mart suggested suggested suggested in in a ina regulatory regulatory a regulatory fil- fil- fil- invariablyinvariablyinvariably devoid devoid devoid RobertRobertRobert F. F. Kennedy F.Kennedy Kennedy Jr. Jr. saidJr. said said his his his es- es- es- inginging that that that the the the scope scope scope of of an ofan aninternal internal internal investi- investi- investi- ofof revealing ofrevealing revealing re- re- re- trangedtrangedtranged wife wife wife had had had “a “a lot“a lot lotof of agony” ofagony” agony” in in her inher her gationgationgation into into into bribery bribery bribery accusations accusations accusations had had had wid- wid- wid- sponses.sponses.sponses. PAGEPAGE PAGE B13 B13 B13 life.life.life. She She She had had had been been been suffering suffering suffering from from from alco- alco- alco- enedenedened beyond beyond beyond the the the huge huge huge retailer’s retailer’s retailer’s subsid- subsid- subsid- holismholismholism and and and depression. depression. depression. PAGEPAGEPAGE A25 A25 A25 iaryiaryiary in in Mexico. inMexico. Mexico. PAGEPAGEPAGE B1 B1 B1 WEEKENDWEEKENDWEEKEND C1-32 C1-32 C1-32

AlreadyAlreadyAlready a a Crowd aCrowd Crowd Pleaser Pleaser Pleaser NATIONALNATIONALNATIONAL A16-22 A16-22 A16-22 TheTheThe True True True Stars Stars Stars at at atCannes Cannes Cannes AA month monthA month before before before his his his planned planned planned walk walk walk across across across IfIf the theIf the movies movies movies that that that win win win acclaim acclaim acclaim at at at NiagaraNiagaraNiagara Falls, Falls, Falls, Nik Nik Nik Wallenda, Wallenda, Wallenda, a a descend- descend- a descend- EdwardsEdwardsEdwards Case Case Case in in inJury’s Jury’s Jury’s Hands Hands Hands France’sFrance’sFrance’s Cannes Cannes Cannes Film Film Film Festival Festival Festival have have have lit- lit- lit- antantant of of the ofthe the Flying Flying Flying AA jury juryA jury began began began deliberating deliberating deliberating the the the fate fate fate of of the ofthe the tletle tleimpact impact impact on on theon the the box box box office, office, office, they they they remain remain remain WallendasWallendasWallendas family family family formerformerformer presidential presidential presidential candidate candidate candidate John John John Ed- Ed- Ed- influential,influential,influential, and and and for for forgood good good reason. reason. reason. PAGEPAGE PAGE C1 C1 C1 ofof circus ofcircus circus perform- perform- perform- wards.wards.wards. His His His lawyer lawyer lawyer argued argued argued that that that he he com-he com- com- ers,ers,ers, practices practices practices in in in mittedmittedmitted a a wrong, wrong, a wrong, but but but did did did not not not commit commit commit a a a EDITORIAL,EDITORIAL,EDITORIAL, OP-ED OP-ED OP-ED A30-31 A30-31 A30-31 thethethe town town town twice twice twice a a a crime.crime.crime. PAGEPAGEPAGE A16 A16 A16 day,day,day, across across across the the the DavidDavidDavid Brooks Brooks Brooks PAGEPAGEPAGE A31 A31 A31 streetstreetstreet from from from a a mini- mini- a mini- DetailsDetailsDetails Released Released Released in in inKilling Killing Killing mart,mart,mart, with with with dozens dozens dozens PolicePolicePolice tried tried tried frantically frantically frantically to to save tosave save Trayvon Trayvon Trayvon ofof onlookers ofonlookers onlookers and and and a a a MartinMartinMartin after after after he he washe was was shot shot shot by by bya a neighbor- neighbor- a neighbor- hothothot dog dog dog stand stand stand near- near- near- hoodhoodhood watch watch watch volunteer, volunteer, volunteer, documents documents documents re- re- re- U(D54G1D)y+$!#!\!=!$U(D54G1D)y+$!#!\!=!$U(D54G1D)y+$!#!\!=!$ by.by. by. PAGEPAGEPAGE A24 A24 A24 leasedleasedleased in in the inthe the case case case show. show. show. PAGEPAGEPAGE A16 A16 A16 Nxxx,2012-05-18,A,014,Bs-BW,E1Nxxx,2012-05-18,A,014,Bs-BW,E1Nxxx,2012-05-18,A,014,Bs-BW,E1

A14 A14N A14 N N THE NEW YORKTHE TIMES NEWTHE YORK INTERNATIONAL NEW TIMES YORK INTERNATIONAL TIMESFRIDAY, INTERNATIONAL MAYFRIDAY, 18, 2012 MAYFRIDAY, 18, 2012 MAY 18, 2012 ConcernConcern AboutConcern About Stability About Stability GivesStability Gives Chinese Gives Chinese OfficialsChinese Officials OfficialsLeeway Leeway to Leeway Crush to Crush Dissentto Crush Dissent Dissent

By MICHAEL WINESBy MICHAELBy WINESMICHAELeven reward WINES localeven leaders rewardeven for local do-reward leaders local for leaders do- for do- Neither actionNeither by the localactionNeither au- by theaction local by au- the local au- LINYI, China LINYI, — The China centralLINYI, — TheChinaing so. central — The The reason ing central so. is The thating reason their so. The is thatreason their is that their thorities was thorities legal. “They wasthorities used legal. was “They legal. used “They used government saysgovernment that thegovernment activist says that Communistthe says activist that the Party Communistactivist careersCommunist Party de- careers Party de- careers de- the justificationthe of justification the one-childthe justification of the one-child of the one-child Chen GuangchengChen is Guangcheng a freeChen man, Guangcheng is apend free on man, is meeting a freepend man, a serieson meetingpend of per- on a meetingseries of a per- series of per- policy and policy stability andpolicy mainte- stability and stabilitymainte- mainte- and has promisedand himhas promisedanand investi- has himpromisedformance an investi- him goals an formanceinvesti- — from highgoalsformance eco- — from goals high — eco-from high eco- nance,” said nance,” Pu Zhiqiang, saidnance,” Pu a said Zhiqiang, Pu Zhiqiang, a a gation of the gation harrowing of thegation abuses harrowing of thenomic harrowing abuses growth nomic abuses to low growth levelsnomic to of growth low levels to low of levels of prominent humanprominent rights lawyer.prominenthuman rights human lawyer. rights lawyer. he suffered he at thesuffered handshe at suffered of the public hands at the unrest of hands public — whose of unrestpublic impor- — unrest whose — impor- whose impor- After the detentionAfter the generated detentionAfter the generateddetention generated guards here. Mr.guards Chen’s here.guards desper- Mr. Chen’shere.tance Mr. desper- far Chen’s outweigh tance desper- any far goldoutweightance stars far any outweigh gold stars any gold stars international headlines,international international Mr. headlines, Co- headlines, Mr. Co- Mr. Co- ate escape lastate month escape fromate last escape per- monthawarded last from month per- for fromfollowingawarded per- the forawarded law. following for the following law. the law. hen said, the publichen said, security thehen public min-said, securitythe public min- security min- secution to Americansecution protection tosecution American to American protectionThat system protection givesThat system leadersThat gives an system leaders gives an leaders an ister sent emissariesister sent to ister emissaries Shan- sent emissaries to Shan- to Shan- has embarrassedhas China’sembarrassedhas leaders embarrassed China’sincentive leaders China’s to silence incentiveleaders troublemak- toincentive silence to troublemak- silence troublemak- dong to discussdong the case.to discuss dongLater, theto in discuss case. Later, the case. in Later, in and cast new and shadows cast newand on their shadowscast newers onby shadows theirany means oners their byin orderanyers means to by win any in order means to in win order to win 2006, Mr. Chen2006, was convictedMr. Chen2006, wasand Mr. convictedChen was andconvicted and commitment tocommitment the rule ofcommitment law. to the rulehigh ofto law.the marks rule forofhigh law. maintaining markshigh for pub- marksmaintaining for maintaining pub- pub- imprisoned onimprisoned what expertsimprisoned on saidwhat experts on what said experts said But a visit to thisBut municipalitya visitBut to this a visit municipalitylic to stability, this municipality onelic of stability, the mostlic one stability, im- of the one most of im- the most im- were trumped-upwere charges, trumped-upwere and trumped-up charges, and charges, and in eastern China,in eastern where Mr. China,in eastern Chen where China,portance Mr. whereChen performance Mr.portance Chen metrics. performanceportance It performance metrics. It metrics. It his detention gainedhis detention a legalhis basis.gained detention a legal gained basis. a legal basis. and his familyand most his familyand recently his most familycan recently uncork most gushers recentlycan uncork of moneycan gushers uncork for of gushersmoney forof money for But when he wasBut released when heBut from was when released he was from released from spent 20 monthsspent as 20 prisoners monthsspent 20in as months prisonersadded assecurity inprisonersadded measures in securityadded to keep measures security tomeasures keep to keep prison in Septemberprison in 2010, prison September Mr. in September 2010, Mr. 2010, Mr. their own home,their offers own no home,their hint own offersof home,control no hint offers of of a no high-profilecontrol hint of of control a activist high-profile of a high-profile activist activist Chen again foundChen himself againChen andfound hisagain himself found and himself his and his a change in thea changeway China ina changethe deals way in Chinalike the Mr. way deals Chen. China like deals Mr. Chen.like Mr. Chen. family sealed familyinside theirsealedfamily village inside sealed their inside village their village with its dissidents.with its dissidents.with its dissidents.And it can payAnd off forit can the Andpay local itoff can for pay the offlocal for the local home, this timehome, surrounded this home,time by surrounded thisa time surrounded by a by a Journalists whoJournalistsNxxx,2012-05-18,A,014,Bs-BW,E1 sought onJournalists who Sun- soughtleaders who on Sun-sought who do leaderson the Sun- job who well.leaders do The the who job dowell. the The job well. The Nxxx,2012-05-18,A,014,Bs-BW,E1 cordon of fencescordon and of cordon security fences of and fences security and security day to talk to residentsday to talk a fewdayto residents hun-to talk toman a residents few Mr. hun- Chen a fewman has hun- Mr. blamed Chenman most hasMr. blamedChen has most blamed most equipment andequipment a contingentequipment and aof contingent and a contingent of of dred yards fromdred Dongshigu, yardsdred from theyards Dongshigu, for from his Dongshigu, detentionthe for his andthe detention imprison-for his detentionand imprison- and imprison- guards aroundguards the clock. around guards the around clock. the clock. village in Linyivillage where in Mr. Linyivillage Chen where in Linyiment Mr. where is Chen Li Qun, Mr.ment Chenwho is was Liment Qun, mayor is who Li Qun,was mayor who was mayor For the layersFor of thegovernment layersFor the of government layers of government was held captive,was held were wascaptive, quickly held were captive,of Linyi quickly werefrom 2003of quickly Linyi to 2007. fromof JustLinyi 2003 a fromto 2007. 2003 Just to a2007. Just a overseeing overseeing Dongshigu,overseeing Dongshigu, Mr. Dongshigu, Mr. Mr. A14 N escorted out escorted by thugs outescorted in THE byfour thugsNEW outfew YORK by inyearsA14 fourthugs TIMESbefore few in that, fourINTERNATIONALyears NMr. beforefew Li yearswas that, before Mr.FRIDAY, Li that, was Mr. MAY Li was 18, 2012 THE NEW YORK TIMES INTERNATIONAL FRIDAY, MAY 18, 2012Chen’s destitute,Chen’s remote destitute,Chen’s village, remotedestitute, village, remote village, cars, and latercars, were and accosted latercars, were inand a lateraccostedstudying were in accostedpublic a studying administration in a publicstudying administration at public administration at at detention has detentionbecome a haslucrativedetention become has a lucrativebecome a lucrative burst of arm-wrenchingburst of burst arm-wrenching and of the arm-wrenching University and the of New University and Haventhe University ofand New Haven of New and Haven and industry. Mr. industry. Chen has Mr.industry. claimed Chen Mr. has Chen claimed has claimed name-calling. name-calling.name-calling. an intern to thean New intern Haven toan the internmay- New to Haven the New may- Haven may- ED JONES/AGENCE FRANCE-PRESSEED JONES/AGENCE —ED GETTY JONES/AGENCEFRANCE-PRESSE IMAGES FRANCE-PRESSE —that GETTY his IMAGES captors — GETTYthat IMAGES told his him captorsthat it cost his told captors him it told cost him it cost or, John DeStefanoor, John Jr. DeStefanoor, John DeStefanoJr. Jr. about $9.5 millionabout annually $9.5about million to $9.5 annually million to annually to Concern About StabilityMembers of theMembers same gangGives ofMembers the still same of gang the ConcernChinese same still gang still OfficialsAboutSecurity guards StabilitySecurity barredLeeway guardsSecurity reporters barred guards fromGives reporters toseeing barred Crush Chen reportersfrom Chinese Guangchengseeing from Chen Dissentseeing Guangchengat a Chen Beijing Officials Guangcheng hospital at a Beijing on at May hospitala Beijing 4.Leeway on hospital May 4. on May to 4. Crush Dissent keep Mr. Chen’skeep mother Mr. keep Chen’s under Mr. mother Chen’sMr. underLi mother has since underMr. been Li has promoted sinceMr. Li been has sincepromoted been promoted keep him underkeep house him arrest. underkeep himhouse under arrest. house arrest. siege here. Mr.siege Chen’s here. siege nephew Mr. here. Chen’sto Mr. party nephew Chen’s secretary nephewto party of Shandong’s secretaryto party ofsecretary Shandong’s of Shandong’s The target of The that target smotheringThe of that target smothering of that smothering By MICHAEL WINES even reward local leaders for do- By MICHAEL WINES even reward local leaders for do- Neither action by the local au- Neither action by the local au- faces a chargefaces of attempted a chargefaces mur- of a attemptedchargebiggest of attemptedmur- port, Qingdao,biggest mur- port,andbiggest heQingdao, sits port, and Qingdao, he sits and he sits all the other all local the officials otherall the local that other officialsthe localtool that of officials choicethe to thattool deal of withchoicethe tool dis- to of deal choicesecurity with to dis- isdeal now withsecurity in adis- Beijing is securitynow hospi- in a isBeijing now in hospi- a Beijing hospi- ing so. The reason is that their ing so. The reason is that their thorities was legal. “They used thorities was legal. “They used LINYI, China — The central der after he slashedder after a heder knife slashed after at he on a slashed knife theLINYI, atprovince’s a knifeon China the at Communist — province’son The the central province’s CommunistA system Communist gearedA system Ato systemgearedthere’s gearedto a different tothere’s way a differentthere’s of doing a way differentsidents of doing and way troublemakers. ofsidents doing andsidents troublemakers. andtal, troublemakers. preparing tal, to move preparing tal, with preparing to his move with to move his with his Communist Party careers de- Communist Party careers de- the justification of the one-child the justification of the one-child government says that the activist plainclothes officersplainclothes who plainclothesinvaded officers whoParty officers invadedgovernment standing who invadedParty says committee, standing thatParty the itsactivist committee,standing committee, its its things now. Andthings that now. wouldthings And be thatnow.a would AndA self-taughtthat be awould A lawyerbe self-taught a whoA self-taught islawyerwife who and lawyer daughteris wife who and to is the daughterwife United and to daughter the United to the United pend on meeting a series of per- allowingpend on localmeetingallowing leaders a allowingseries local of per- leaders local leaders policy and stability mainte- policy and stability mainte- Chen Guangcheng is a free man, his home and hisbeat home him. andLawyershis homebeat him. andhighest LawyersbeatChen rulinghim. Guangcheng Lawyers highestbody. ruling ishighest a body.free ruling man, body. very fundamentalvery change.” fundamentalvery fundamental change.”blind, Mr.change.” Chenblind, crusaded Mr. blind, Chen for so- crusaded Mr. ChenStates for crusaded to so-studyStates law. for so-But to studytheStates costly law. to Butstudy the law. costly But the costly formance goals — from high eco- formance goals — from high eco- nance,” said Pu Zhiqiang, a nance,” said Pu Zhiqiang, a and has promised him an investi- seeking to defendseeking the to seeking nephew defend to the defend Only nephewand whenhas the promised nephew Only local whenmeasureshimOnly an localinvesti- when measures local measures A serious inquiryA serious also A would inquiry serious cial also inquiry justice would also incial hiswould justice nativecial in Shan- justice his nativecrackdown in his Shan- native continuescrackdown Shan- unabated.crackdown continues unabated.continues unabated. nomic growth to low levels of to ignorenomic growth theto ignore law. to lowto theignore levels law. of the law. prominent human rights lawyer. prominent human rights lawyer. gation of the harrowing abuses have been orderedhave been to drophave ordered the been to blow ordered drop gation up the intoto of drop blow national the the harrowingup intoorblow global national up abuses into or national global or global send a signal send that when a signalsend enough that a signal whendong that enough Province, when dong enough and Province, in dong the pro- Province,and in Outside the and pro- in Dongshigu, theOutside pro- Outside Dongshigu,police Dongshigu, police police public unrest — whose impor- public unrest — whose impor- After the detention generated After the detention generated he suffered at the hands of case or face retribution.case or facecase retribution. or faceembarrassments, retribution.he sufferedembarrassments, as at they theembarrassments, have hands in as they of have as inthey have in publicity and pressurepublicity isand publicitybrought pressure andcess is pressure brought imperiled is broughtcess party imperiled cess officials’ imperiled partyvans officials’ dot party the hig officials’vanshway, dot their thevans higlights dothway, the their highway, lights their lights tance far outweigh any gold stars tance far outweigh any gold stars international headlines, Mr. Co- international headlines, Mr. Co- guards here. Mr. Chen’s desper- There is no evidenceThere is that noThere evidence the is Mr. no that evidence Chen’sguards the case, here. thatMr. theisChen’sMr. the Chen’sMr. central case, Chen’s desper- is the case, central is the central to bear, the Communistto bear, the Partyto Communist bear, can the recordCommunist Party not can only Partyrecord on cankeeping not recordonly order, on not keeping onlyflashing, on order, keeping and flashing, carloads order, and offlashing, plain- carloads and of carloads plain- of plain- awarded for following the law. hen said.awarded “I can henfor tell following said. you that“Ihen can the there said. tell law. you“I can that tell there you that there hen said, the public security min- hen said, the public security min- ate escape last month from per- government ingovernment Beijing government ordered in Beijinggovernment in ordered ate Beijing escape obliged orderedgovernment last month to government step obliged from in per- to obliged step in to step in be forced to change.be forced tobe change. forced tobut change. also on anotherbut also important onbut another also onclothes important another guards importantclothes roam sideguardsclothes roads, roam guards side roam roads, side roads, That system gives leaders an are thousandsThat system areof cases thousands gives likeare this.” leaders thousandsof cases an like of this.” cases like this.” ister sent emissaries to Shan- ister sent emissaries to Shan- secution to American protection this harassment,this all harassment, of whichthis harassment,is il-all ofand which ordersecution all is of il- face-savingwhich and to Americanis order il- measures and face-saving protection order face-saving measures measures “The main problem“The main with“The problem Bei- mainmeasure: with problem Bei- enforcing withmeasure: Bei- the one-childenforcingmeasure: theenforcingtheir one-child license the one-child their plates license sometimestheir plates license sometimes plates sometimes incentive to silence troublemak- To thoseincentive who tostudyTo silence those the whosystem, troublemak-To thosestudy whothe system, study the system, dong to discuss the case. Later, in dong to discuss the case. Later, in has embarrassed China’s leaders legal under legal Chinese under law.legal Chinese But underlike law. Chinese investigations.has But embarrassed law.like But investigations. In China’s countlesslike investigations. leaders In countless In countless jing is that veryjing often, is that theyjing very con- is often, that population-control very they often, con- theypopulation-control con- policy.population-control policy.covered policy. in camouflagecovered incloth. coveredcamouflage in camouflage cloth. cloth. ers by any means in order to win its successers by makes anyits means success it unlikely inits makesorder success that toit winunlikely makes itthat unlikely that 2006, Mr. Chen was convicted and 2006, Mr. Chen was convicted and and cast new shadows on their there is also there no any is indication alsothere no is any alsoother indication noand instances, any cast indication other new the shadows instances, expertsother say, on instances, the their experts the say, experts say, done injusticesdone even injustices thoughdone they eveninjustices thoughIn evenAugust they though 2005,In they after August he Inbegan2005, August after 2005,Onhe began Sunday,after he whenbeganOn Sunday, journalistsOn when Sunday, journalists when journalists high marks for maintaining pub- high marks for maintaining pub- imprisoned on what experts said imprisoned on what experts said commitment to the rule of law. that Beijing wantsthat itBeijing to stop.that wants Beijing it toBeijing wantsstop.commitment itquietly to stop.Beijing tolerates to the quietly localruleBeijing oftoleratesoffi- law. quietlyparty local tolerates leaders offi- local willparty offi-use leaders theparty embar- will leaders use knowthe will embar- thatuse the the knowembar- local that authoritiesknow the local that a authoritiesthe deftly local publicized authoritiesa deftly campaign publicizeda deftly to publicized campaignsought to campaign to visitsought Mr. toChen’s to sought visit home Mr. to Chen’s visit Mr. home Chen’s home lic stability, one of the most im- lic stability, one of the most im- were trumped-up charges, and were trumped-up charges, and But a visit to this municipality In fact, both In rights fact, activists bothIn fact, rights cials’ both activists lawlessness, rightsBut a activistsvisitcials’ andto lawlessness, this theycials’ municipality do lawlessness,so andrassment they do and so of they therassment do Chen so episode ofrassment the Chen to ofare episode the in Chen the to wrong,” episodeare in said to the Nicholasare wrong,” in the said wrong,”help Nicholas citizens said sue Nicholashelp the citizens localhelp govern- sue citizens the localin sue Dongshigu,govern- the local ingovern- about Dongshigu, 33in miles Dongshigu, about 33 about miles 33 miles portance performance metrics. It portance performance metrics. It his detention gained a legal basis. his detention gained a legal basis. in eastern China, where Mr. Chen and legal expertsand say, legal the expertsand system legal say, experts forthe a system simplein say, eastern the reason: forsystem China, a simple with wherefor rare reason: a Mr. simpleex- Chen withpush reason: rare for ex- with changes rarepush ex- for that push changes could for Bequelin that changes could of that HumanBequelin could Rights ofBequelin Human Watch Rights ofment Human Watch over Rights forcedment Watch late-term over mentforced abor- over late-term forcedfrom abor- Linyi,late-term theyfrom abor- were Linyi, from quickly they Linyi, were they quickly were quickly can uncork gushers of money for can uncork gushers of money for But when he was released from But when he was released from and his family most recently for dealing withfor dissidentsdealingfor with dealing and dissidentsceptions, withand dissidents and the his ceptions, system family and is most theceptions, exceed- system recently the themselves is system exceed- isprove themselves exceed- destabilizing.themselves prove destabilizing.in prove Hong destabilizing. Kong.in “But Hong many Kong.in ofHong “Butthe Kong. manytions “But of and the many sterilizations,tions of the and tions sterilizations, the re- and sterilizations,and theroughly re- escorted and the roughly re- awayand escorted by roughly se- away escorted by se- away by se- added security measures to keep added security measures to keep prison in September 2010, Mr. prison in September 2010, Mr. spent 20 months as prisoners in other troublemakersother troublemakers is gearedother troublemakersto- isingly geared spentefficient to- is 20geared atingly months stifling to-efficient as unrest.ingly prisoners at efficient stifling in unrest.“It at stiflingwould have unrest.“It implications would have“It notwould implicationsproblems have implications not thatproblems come not up thatproblems in these come that upaction in come these was up swift: inaction these a was mobaction swift: sur- was a curity mob swift: guardssur- a mobcurity in sur- plain guards curity clothes. in guards plain clothes. in plain clothes. control of a high-profile activist control of a high-profile activist Chen again found himself and his Chen again found himself and his their own home, offers no hint of ward allowing wardlocal allowingleadersward to local allowingig- leadersJerome localtheir to leadersig- Cohen,own home, Jerometo a ig-law offers professor Cohen,Jerome no hinta law Cohen, justof professor in aone law city professorjust or onein one county, justcity in orbut one one city casescounty, or areone but notcounty, cases isolated but are — notcases they’re isolated are notrounded — isolated they’re Mr. — Chen’s rounded they’re village Mr.rounded Chen’shome, Mr. villageLater, Chen’s home, in village Yinan,Later, home, the countyin Yinan,Later, seat, the in Yinan, county the seat, county seat, like Mr. Chen. like Mr. Chen. family sealed inside their village family sealed inside their village a change in the way China deals nore the law, withnore Beijing’s the law,nore some-with the Beijing’s law,at with New asome- Beijing’schange York at Universityin some- Newthe way Yorkat andChina New University an deals Yorkfor University the and entire an for country,” and the an entire Fufor Hual- the country,” entireendemic. Fu country,” Hual- And Fu endemic. Beijing Hual- fears Andendemic. thatBeijing Andtrapping fears Beijing that the fears trapping family that inside thetrapping family for the one inside family man for attacked insideone forman a photogra-one attacked man a attacked photogra- a photogra- And it can pay off for the local And it can pay off for the local home, this time surrounded by a home, this time surrounded by a with its dissidents. times silent assent.times silenttimes assent. silent adviser assent.with to its Mr. dissidents.adviser Chen, said to adviserMr. he Chen,was to Mr.saiding, Chen,he a was law said professor ing,he was a law ating, professor Hong a lawbacking professor at Hong down at backingon Hong one case downbacking would on one down weeks.case on would one Foreshadowingcaseweeks. would weeks. Foreshadowing the Foreshadowingpher who the was pherrecording thewho wasapher report- recording who was arecording report- a report- leaders who do the job well. The leaders who do the job well. The cordon of fences and security cordon of fences and security Journalists who sought on Sun- The central governmentThe centralThe may government centraltold government by mayJournalists a prominenttold may who by sought atold Chinese prominent byon Sun- a Kong prominent Chinese University, ChineseKong said University, inKong an in- University, saidopen in anthe said in-floodgates.” inopen an in-the floodgates.”open the floodgates.”events of thisevents spring, of Mr. events this Chen spring, of thiser’s Mr. attempt spring, Chen Mr.toer’s question Chen attempt him.er’s to attemptquestion to him. question him. man Mr. Chen has blamed most man Mr. Chen has blamed most equipment and a contingent of equipment and a contingent of day to talk to residents a few hun- criminalday to lawyer talkcriminal to that residents cases lawyercriminal a likefew that hun- lawyer terview. cases that like“This cases terview.is how like they “Thisterview. govern is how “This theyMr. is govern how Chen’s they case, governMr. one Chen’s of theMr. case, few Chen’s oneand of case, thea nephew fewone of eventuallyandthe fewa nephew andescaped eventually a nephew“Get eventuallyescaped out of escaped China,”“Get out the of“Get man China,” out of the China,” man the man for his detention and imprison- for his detention and imprison- guards around the clock. guards around the clock. dred yards from Dongshigu, the Shi Da contributedShi Da research contributedShi fromDa contributed researchMr. Chen’sdred from research yards wereMr. from Chen’s not Dongshigu,Mr. unusual. were Chen’s not thethe wereunusual. population. not unusual.the If youpopulation. punishthe population. Ifthe youto punish get If prolongedyou the punishto get public the prolonged scrutiny,to get prolonged publicto Beijing, scrutiny, public only scrutiny,to to Beijing, be seized toonly Beijing, there to be seizedonlyyelled to there be at aseized Chineseyelled there news at ayelled Chinese assist- at a news Chinese assist- news assist- ment is Li Qun, who was mayor ment is Li Qun, who was mayor For the layers of government For the layers of government village in Linyi where Mr. Chen Dongshigu, China,Dongshigu, and Dongshigu, Edy China, Yin and “They’re China, Edyvillage Yin and only in Edy“They’re Linyi unusual Yin where only“They’re because Mr. unusual Chen onlylocal because unusual government, becauselocal if government, youlocal dismiss government, if youoffers dismiss some if you insights offers dismiss some intooffers the insights in- some intoand insights returned the in- into homeand the returned in-by policeand home returnedoffi- byant. police home “You’re offi- by police notant. Chinese. offi- “You’reant. You’re not “You’re Chinese. not You’re Chinese. You’re of Linyi from 2003 to 2007. Just a of Linyi from 2003 to 2007. Just a overseeing Dongshigu, Mr. overseeing Dongshigu, Mr. was held captive, were quickly from Beijing. from Beijing.from Beijing.you knowwas held aboutyou captive, them,” know you were aboutMr. know Co- quickly them,” aboutthe Mr.officials, them,” Co- then Mr.the youofficials, Co- havethe thento officials, tell you centiveshave then to you tell that have centives maketo tell repression thatcentives make that cers repression makesent from repression cersShandong. sent fromcers Shandong. sent froma traitor.” Shandong. a traitor.” a traitor.” escorted out by thugs in four few years before that, Mr. Li was escorted out by thugs in four few years before that, Mr. Li was Chen’s destitute, remote village, Chen’s destitute, remote village, cars, and later were accosted in a studying public administration at cars, and later were accosted in a studying public administration at detention has become a lucrative detention has become a lucrative burst of arm-wrenching and the University of New Haven and burst of arm-wrenching and the University of New Haven and industry. Mr. Chen has claimed industry. Mr. Chen has claimed that his captors told him it cost name-calling. an intern to the New Haven may- name-calling. an intern to the New HavenED JONES/AGENCE may- FRANCE-PRESSE — GETTY IMAGES ED JONES/AGENCE FRANCE-PRESSE — GETTY IMAGES that his captors told him it cost or, John DeStefano Jr. or, John DeStefano Jr. about $9.5 million annually to about $9.5 million annually to Members of the same gang still In EconomicIn EconomicInSecurity Economic Rise, guardsMembers barredChina’sRise, of reporters the Rise, same China’s gangfrom ‘Princelings’ still seeingChina’s Chen ‘Princelings’ Guangcheng ‘Princelings’ atLearn a Beijing hospitalSecurity Learn to on guards CashMayLearn 4.barred to reportersCashIn to on fromCash InTheir seeing on ChenIn Their GuangchengFamily on Their Familyat a BeijingTies Family hospital Ties on May Ties 4. keep Mr. Chen’s mother under Mr. Li has since been promoted keep Mr. Chen’s mother under Mr. Li has since been promoted keep him under house arrest. keep him under house arrest. siege here. Mr. Chen’s nephew to party secretary of Shandong’s siege here. Mr. Chen’s nephew to party secretary of Shandong’s The target of that smothering The target of that smothering faces a charge of attempted mur- biggest port, Qingdao,From Page and he A1 sitsFrom APage systemFrom A1 Pagefaces geared A1 a charge to of attemptedall themur- otherbiggest local port, officials Qingdao, that andthe he tool sits ofPower choiceA system to anddealPower with geared Profit dis-Power and securityto Profit andis nowall theinProfit a otherBeijing local hospi- officials that the tool of choice to deal with dis- security is now in a Beijing hospi- der after he slashed a knife at on theofficial, province’s helped official, Merrill Communist helped Lynchofficial, Merrillwin helped Lynch Merrillder win after Lynch he win slashed a there’s knife at a Family differenton members the way province’sFamily ofof doingmany members Communisthigh-rankingFamilysidents of members many and officials troublemakers.high-ranking of many have high-ranking profited officials enormously have officialstal, profited preparing havefrom enormously there’sChina'sprofited to move aeconomicenormously from different with China's boom, his wayfrom economic ofChina's doing boom,economicsidents boom, and troublemakers. tal, preparing to move with his plainclothes officers who invaded Party a standing deal to arrange committee,a deal the to $22 arrangeitsa dealbillionallowing to the arrange $22 plainclothes billion local the $22 leaders billion officers whothings invaded now.oftenParty And through that standing would businessesoften be committee, through a tiedoftenA businesses to self-taughtthrough itsthe state.allowing businessestied Below, lawyerto the some state.tiedlocal who totop Below, the is Partyleaders state.wife some leaders, andBelow, top daughter andParty thingssome important leaders, topnow. to Party the And relatives.and Unitedleaders, thatimportant would and relatives. importantbe a relatives.A self-taught lawyer who is wife and daughter to the United his home and beat him. Lawyers highestpublic ruling listing body. public of the listinggiantpublic state- of the listing giant of his state-the home giant and state- beat him. veryLawyers fundamentalhighest change.” ruling body. blind, Mr. Chen crusaded for so- States to studyvery law. fundamental But the costly change.” blind, Mr. Chen crusaded for so- States to study law. But the costly seeking to defend the nephew Onlyrun when bank local I.C.B.C.,run measures bank in what run I.C.B.C., bankto be- ignore in I.C.B.C., whatseeking the be- in whatlaw. to defend be- the nephewA serious inquiryOnly when also would local measurescial justice to in ignore his native the Shan- law.crackdown continuesA serious unabated. inquiry also would cial justice in his native Shan- crackdown continues unabated. have been ordered to drop the blow upcame into the national world’scame or largest theglobal came world’s initial the largest world’s have initial largest been initial ordered to dropsend thea signalblow that up when into enoughnational ordong global Province, and in the pro- Outside send Dongshigu, a signal that police when enough dong Province, and in the pro- Outside Dongshigu, police case or face retribution. embarrassments,public stock as offering. publicthey have stock publicin offering. stock offering.case or face retribution. publicity andembarrassments, pressure is brought as theycess have imperiledin party officials’ vans dot thepublicity highway, and their pressure lights is brought cess imperiled party officials’ vans dot the highway, their lights There is no evidence that the Mr. Chen’sMuch case, of the is income theMuch central ofearned theMuch incomehen by ofsaid. the earned “I income canThere bytell earned you is nothat by evidence there to that bear, the the Mr.Communist Chen’s Party case, can is therecord central not onlyhen said.on keeping “I can tellorder, you thatflashing, there andto bear, carloads the Communist of plain- Party can record not only on keeping order, flashing, and carloads of plain- be forced to change. but also on another important clothes guardsbe forced roam to side change. roads, but also on another important clothes guards roam side roads, government in Beijing ordered governmentfamilies obliged of seniorfamilies to leaders step of familiesin seniormayare be leaders ofthousands senior maygovernment leaders of be cases may like in be this.” Beijing ordered government obliged to step in are thousands of cases like this.” this harassment, all of which is il- and order face-saving measures this harassment, all of which“The is il- mainand problem order face-saving with Bei- measuresmeasure: enforcing the one-child their license “The plates main sometimes problem with Bei- measure: enforcing the one-child their license plates sometimes entirely legal. entirelyBut it is legal.allentirely but But im-To itlegal. thoseis all But butwho it im- studyis all but the im-system, To those who study the system, legal under Chinese law. But like investigations. In countless legal under Chinese law.jing is But that like very investigations. often, they con- In countlesspopulation-control policy. covered in camouflagejing is that cloth. very often, they con- population-control policy. covered in camouflage cloth. possible to distinguishpossible topossible between distinguishits success to distinguish between makes it betweenunlikely that its success makes it unlikely that there is also no any indication other instances, the experts say, there is also no any indicationdone injusticesother even instances, though thethey expertsIn say,August 2005, after he began On Sunday,done when injustices journalists even though they In August 2005, after he began On Sunday, when journalists legitimate andlegitimate ill-gotten gains legitimateand ill-gotten partybe- andleaders gains ill-gotten will be- use gains the be- embar- that Beijing wants it to stop. Beijing quietly tolerates local offi- that Beijing wants it to stop.know that Beijing the local quietly authorities tolerates locala deftly offi- publicizedparty leaders campaign will use to thesought embar- to visitknow Mr. that Chen’s the home local authorities a deftly publicized campaign to sought to visit Mr. Chen’s home cause there iscause no public therecause disclo- is rassment no there public is of no disclo-HU the publicJINTAO Chen disclo- episodeHU JINTAO to HU JINTAO WEN JIABAO WEN JIABAOWEN JIABAOrassmentJIANG ofZEMIN the ChenJIANG episode ZEMINJIANG to ZEMIN LI PENG LI PENG LI PENG WU BANGGUO WU BANGGUOWU BANGGUO In fact, both rights activists cials’ lawlessness,sure of the wealth andsure they of of officials dothe sosure wealth andof theof officials wealth ofInand officials fact, both and rights are activists in the wrong,”cials’ lawlessness, said Nicholas and theyhelp do citizens so sue the local govern- in Dongshigu,are in about the wrong,” 33 miles said Nicholas help citizens sue the local govern- in Dongshigu, about 33 miles and legal experts say, the system for a simple reason: with rare ex- push forChina's and changes presidentlegal experts thatChina's could say,presidentChina's theBequelin system president ofPrime forHuman a simpleminister Rights reason:Prime Watch minister withPrimement rare ministerex-over forcedpushFormer late-term for president changes abor-Former that presidentfrom Former could Linyi, presidentBequelin theyFormer were of Human prime quickly minister RightsFormer WatchprimeFormer ministerment prime over China'sminister forced top late-term legislatorChina's abor- topChina's legislatorfrom top Linyi, legislator they were quickly their relatives.their Conflict-of-inter- relatives.their themselves relatives.Conflict-of-inter- p Conflict-of-inter-rove destabilizing. themselves prove destabilizing. for dealing with dissidents and ceptions,est laws the systemare weakest is laws or exceed- nonexistent. areest weak laws or are nonexistent. weakfor or dealingnonexistent. with dissidentsin Hong and Kong.ceptions, “But many the system of the is tions exceed- and sterilizations, the re- and roughlyin escorted Hong Kong. away “Butby se- many of the tions and sterilizations, the re- and roughly escorted away by se- “It would have implications not “It would have implications not other troublemakers is geared to- ingly efficientAnd the at business stiflingAnd unrest.dealings the businessAnd of thethe dealings business otherof dealings the troublemakers of the is gearedproblems to- thatingly come efficient up inat thesestifling unrest.action was swift: a mob sur- curity guardsproblems in plain that clothes. come up in these action was swift: a mob sur- curity guards in plain clothes. just in one city or one county, but just in one city or one county, but ward allowing local leaders to ig- Jeromepolitical Cohen, elite a law political are professor heavily elitepolitical cen- are eliteheavily areward cen- heavily allowing cen- local leaderscases to ig- are not Jerome isolated Cohen, — they’re a law professorrounded Mr. Chen’s village home, Later, in Yinan,cases the are county not isolated seat, — they’re rounded Mr. Chen’s village home, Later, in Yinan, the county seat, nore the law, with Beijing’s some- for the entirenore country,” the law, Fuwith Hual- Beijing’sendemic. some- And Beijing fears that trapping thefor family the entire inside country,” for Fuone Hual- man attackedendemic. a And photogra- Beijing fears that one man attacked a photogra- at Newsored York inUniversity thesored state-controlled and in ansored the state-controlled in theHu Haifeng state-controlledHu HaifengHuWen Haifeng YunsongatWen New Yunsong Zhang YorkWen University Beili YunsongZhang andJiang Beili anZhang Mianheng BeiliJiang MianhengAlvinJiang Jiang MianhengAlvin JiangLi AlvinXiaolin Jiang Li XiaolinLi XiaopengLi Xiaolin trappingLi Xiaopeng Feng theLi Xiaopeng familyShaodong insideFeng Shaodong for Feng Shaodong times silent assent. adviser to Mr. Chen, said he was ing, a lawtimes professor silent assent. at Hong backing downadviser on one to caseMr. Chen, would saidweeks. he was Foreshadowinging, a law professor the atpher Hong who wasbacking recording down a onreport- one case would weeks. Foreshadowing the pher who was recording a report- news media. news media.news media.Son Son SonSon Son WifeSon Wife Son Wife Son GrandsonSon GrandsonDaughterGrandson DaughterSon Daughter Son Son-in-lawSon Son-in-law Son-in-law The central government may told by The a prominent spoils system,The Chinese spoils for allThe system, Kong the spoils University, for system, all The the for saidcentral all in the governmentan in- open may the floodgates.”told by a prominent events Chinese of thisKong spring, University, Mr. Chen said iner’s an attempt in- open to question the floodgates.” him. events of this spring, Mr. Chen er’s attempt to question him. criminalefforts lawyer to keep thatefforts a caseslid on to it, likekeepefforts poses aterview. lid toa onkeep Servedit, “This aposes lid asis on ahow party it, posestheyServed govern a as partyServedMr. Wen’sMr. as partyChen’s son, criminal Mr.also case, Wen’s one According lawyer son, Mr.of the Wen’salso that fewto ason, According casesand also Partlya like nephew toAccording controls aterview. eventually Partlyto “This a controls escaped Announcedis howPartly they controls plans govern“GetAnnounced out Chairwoman ofMr.Announced plans China,” Chen’s theand case,plansChairwoman man one Former of Chairwomanthe and chairmanfew andFormer and a nephew chairmanAlsoFormer eventuallyknown chairman as Also escaped knownAlso as “Get known out as of China,” the man Shi Da contributed research from Mr. Chen’sfundamental were challengenotfundamental unusual. tofundamental the challengethe le- population.secretary tochallenge theShi Da le-If to you contributed to secretary thepunish le- the researchtosecretary knownto get from asto prolonged WinstonMr.known Chen’s public asU.S. Winstonknown scrutiny,Statewere as not WinstonU.S. to unusual. 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Nuclear Power Nuclear PowerNuclear Power From Page A1 point to the riskpoint that to national thepoint risk pol- tothat the national riskto detect that pol- nationalcontrabandFromto detect pol- Page contrabandto A1 privatedetectPower contraband equity firm. privateand equityProfitprivate firm. equity firm.DreamWorks deal.DreamWorksDreamWorks deal. deal. Power and Profit Holding Holding Holding icies may be subvertedicies may icies beby subverted lead- may beor subverted bydangerous lead- byor lead-dangerousor dangerous Corporation. Corporation.Corporation. official, helped Merrill Lynch win Family members of many high-ranking officials have profited enormously from China's economicFamily members boom, of many high-ranking officials have profited enormously from China's economic boom, ers and formerers leaders, and former ers many and leaders, of formermaterials. many leaders,official, of helped manymaterials. ofMerrillmaterials. Lynch win a deal to arrange the $22 billion whom exert influencewhom exert longwhom influence after exertoften long influence througha after deal longbusinesses to arrange after tied the to $22 the billion state. Below, some top Party leaders, and importantoften relatives. through businesses tied to the state. Below, some top Party leaders, and importantTHE NEW relatives. YORK TIMES THE NEW YORK TIMESTHE NEW YORK TIMES public listing of the giant state- their retirement,their acting retirement, totheir protect retirement, acting to protectpublic acting listingto protect of the giant state- run bank I.C.B.C., in what be- their own interests.their own interests.their own interests.closurerun reports bankclosure I.C.B.C., remain reports closure in secret; what remain reports be-want secret; to remain implement want secret; toreform, implementwant their to implement reform,that Zeng their reform, Wei,that the their Zengson of Wei,that China’s Zengthe son Wei,selves. of China’sthe “Theson of partyselves.China’s has “The selves. said party an- “The hasmunist party said Party an- has saidmunist promising an- Party munist to over- promising Party promising to over- to over- came the world’s largest initial Chinese officialsChinese and their officialsChinese rela- and officialsproposals theircame rela- and to thetheir makeproposals world’s rela- them largestproposals to public make initial them tochildren make public mightthemchildren public say, ‘Dad, mightchildren what say, might ‘Dad,former say, what vice ‘Dad, presidentformer what vice Zengformer president Qing- viceticorruption Zeng president Qing- Zeng effortsticorruption Qing- are a ticorruptionlife-and- efforts arehaul effortsa life-and- the are nation’s a life-and-haul media the nation’s haul and cul- the media nation’s and media cul- and cul- public stock offering. tives rarely discusstives rarely suchtives adiscuss del- rarely suchhave discuss public abeen del- suchshelved stockhave a offering. del- repeatedlybeen haveshelved beenby repeatedly shelvedabout my repeatedly by business?’”about by my business?’”about my business?’”hong, bought ahong, $32 millionboughthong, man- a $32 bought milliondeath a $32 man-issue,” million Mr.death man- Li issue,”said.death “But Mr. issue,” if Li said.tural Mr. “But industries, Li said. if tural “But the industries, if relativestural industries, of the relatives the of relatives of Much of the income earned by icate issue publicly.icate issue Theicate publicly. 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Overthe the nation. past the twoOver nation. dec- the past OverChina.Former two the China's“Afterdec- pastpresident twoaChina.president while dec- “Afteryou China. realize, a while “After youleaders a realize,whileFormer typicallyPrime you prime leadersrealize, minister followminister typically —leaders rather follow typicallywhich — rather followChina's the —Former topwhich sons, rather legislator president daughters, thewhich sons, the cluding daughters, sons, Shanghai daughters,cludingFormer Alliance Shanghai primecluding Invest- minister Alliance Shanghai Invest- Alliance Invest-China's top legislator their relatives. Conflict-of-inter- DreamWorks DreamWorks and MicrosoftDreamWorks and ades, Microsoft their business and relatives. Microsoftades, and businesspolitics Conflict-of-inter-ades, have and business politics and have politics have than precede —than a fall precede fromthan politi-— precede a fall spousesfrom — apoliti- fall and from closespouses politi- relatives andspouses closeact as relatives andment, close actwas relatives as timedment, act to as coincidewas ment,timed with wasto coincide timed to with coincide with est laws are weak or nonexistent. est laws are weak or nonexistent.wow, there arewow, actually there wow, a are lot thereactually of are a actually lot of a lot of declined to commentdeclined about todeclined comment their to becomeaboutcomment their so about tightlybecome their intertwined, sobecome tightly so intertwined,princelings tightly intertwined, outprincelings there,” saidprincelings out Victor there,” cal outsaid grace.there,” Victor Mr.said cal Bo’s Victor grace. downfall cal Mr. grace. 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Hey- transactions.liance is partlyliance controlled is partlyliance by Mr.controlled is partly controlledby Mr. by Mr. efforts to keep a lid on it, poses a Served as party Mr. Wen’s son, also effortsAccording to keep to aa lid onPartly it, poses controlsleaders. a Served “You’ve Announcedasleaders. party got the “You’ve plans leaders.children got Mr.“You’ve Chairwomanthe Wen’s children got son, the alsoand children AccordingFormer chairman to a Partly Alsocontrols known as Announced plans Chairwoman and Former chairman Also known as secretaryChina’s to ruling China’selite had knownruling carvedChina’s aselite up Winston ruling hadRoderick carved elite U.S.had up MacFarquhar, carvedStateRoderick up MacFarquhar,Roderick a ChinaShanghai MacFarquhar, Alliance a Chinasecretary to a raiseto China $1 billion knownchiefwood, asexecutive aWinston British ofwood, businessman, U.S. aof British aState wood,state- inbusinessman, a a BritishMoreover,Shanghai businessman, inWilson a Alliance China’s Feng,Moreover, in ahe leading isto raiseMoreover, China’s po- $1 billionJiang, leading China’s the po- leadingsonchiefJiang, of executive a po-former the Jiang,son of presi- of theaof formera son state- of presi-a former presi-Wilson Feng, he is fundamental challenge to the le- specialistfundamental at Harvardspecialist challenge University. atspecialist Harvard to the at le-of University. Harvardcurrent officials, University.of current the children officials,of current of the officials,dispute children the over of children dispute the family’s of overdispute busi- the family’sover the busi- family’s busi- dent, Jiang Zemin.dent, AJiang persondent, Zemin. who Jiang A person Zemin. who A person who Tsinghuathe Holdings, country’s the economic country’sWen, the pie. is country’sthe economic At economic pie.Department At pie. 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Microsoft joint Before formerthat, he executive was Communicationspower generating gemsProvince. market. Microsoftestablished joint by theformer executive power generating Province. established by the times called the Red Nobility, an- regulated marketplace.regulated marketplace.regulated marketplace.couldtimes benefit called thecould larger the benefit Red populace.could Nobility, the benefit larger an- populace.the larger populace. the authoritiesthe are authorities investigatingthe authorities are investigatingwhere, are according investigatingwhere, to according interviewswhere, according to Zeng interviews Qinghong, to interviewsZeng China’s Qinghong,Zeng former Qinghong, China’s former China’s former president of a Corporation and venture andagainst in president afrom againstculture of TPG,a theagainst ofa cultureCorporationcompanies. a cultureof and of venturestate-owned and in from TPG, the companies. state-owned alysts say the potential exists for A Chinese sportswearA Chinese compa- A sportswear ChineseChanges sportswear compa-alysts in bankingsay Changes compa- the potential and in financialChanges banking exists in and for banking financial and financial whether otherwhether assets held otherwhether by assets the other withheld assets bankersby the held andwith by investment thebankerswith and bankersad- investmentvice and president, investment ad- vice is also ad-president, in vicethe filmpresident,is also in theis also film in the film state-controlled firm the co-founder of China Netcom, state-controlledas American firm private the co-founder of ChinaGuangdong Netcom, as American private Guangdong a backlash against an increas- ny called Xidelong,ny called for example,Xidelong,ny called forXidelong,services, example,a backlash for for example, instance,services, against couldforservices, an instance, increas-af- for could instance, af- could af- family may havefamily been may family secretly have may beenvisers. have secretly Lately, been secretlyvisers.the progeny Lately,visers. of the the Lately, progenybusiness. the of progeny the He servedbusiness. of the as aHe business.consult- served Heas aserved consult- as a consult- that made scanners New Horizon, a big well as a ‘Redrecent Nobility.’equity‘Red giant. Nobility.’‘Red Nobility.’New Horizon, a big Nuclear Power equity giant. Nuclear Power ingly entrenched elite. They also proudly informedproudly some informed potentialproudly someinformedfect potential theingly some interests entrenched potentialfect of the the interestselite. familyfect Theythe ofof interests alsothe family thatof theof made family scanners of and illegally movedand illegally offshore.and moved illegally offshore.political movedwell as offshore. elite a recent political have retooled elitepolitical have the elite retooledant have for the the retooled patrioticant thefor theepicant patriotic “Be- for the epic patriotic “Be- epic “Be- point to the risk that national pol- to detectinvestors contraband thatinvestors one ofprivate its thatinvestors share- equity one of thatfirm.Zhu its oneRongji,point share- of to its China’stheZhu share- risk Rongji, that primeZhu national China’sDreamWorks min- Rongji, pol- prime China’s deal. to min- detect prime contraband min- privateWen equity Jiabao, firm. Wen the prime Jiabao,Wen min- the Jiabao, primespoilsDreamWorks the system min-Holding prime forspoils deal. a min- new system era,spoils mov-for system a newginning era, for amov- new of theera,ginning mov- Great of Revival.”ginning the Great of the Revival.” Great Revival.”Holding icies may be subverted by lead- or dangerousholders was theholders son of was Wenholders the Jia- son was ofister the Wen fromicies son Jia- of1998 may Wenister to be 2003 Jia- subvertedfrom and ister1998 one tofrom by of 2003 lead- 1998 and to one or2003 dangerous of and one of ister, respondedister, by respondeddemandingister, respondedby a demandinging intoby Corporation. demanding a high-financeing into a ventures high-financeing into high-financeThe ventures film exemplified venturesThe film the exemplified Thehand-in- film exemplified the hand-in- the hand-in-Corporation. ers and former leaders, many of materials. ers and former leaders, many of materials. bao, accordingbao, to one according ofbao, the according to in- onethe of architects theto one in- of theof the China’s architects in- theeconom- ofarchitects China’sprevious econom-of China’s officials, econom-previous the children officials,previous of the officials, morechildren forceful the of children morecrackdown offorcefulmore on crackdowncor- forcefullike crackdown on private cor- THE equity like onNEW cor-YORK private funds, TIMESlike equitywhere private funds,glove equity where relationship funds,glove where between relationshipglove busi- relationship between busi- between busi- THE NEW YORK TIMES whom exert influence long after vestors. (A privatevestors. equity (Avestors. private firm (A equityic private system.whom firm equity His exertic son, system. firm influence Levinic His system. long Zhu, son, after local Levin His son, officials, Zhu, Levinlocal central Zhu, officials, local officials, central officials,ruption. officials, central Without officials,ruption. naming Withoutruption. Mr. Bo naming Withoutthe potentialMr. naming Bo the returns Mr. potential Bo dwarfthe returns potential the ness dwarf returns and the politics. dwarfness the It and was politics.ness shown and It politics. was shown It was shown their retirement, acting to protect joinedtheir China retirement, joined International China actingjoined International Cap-to protect Chinamilitary International Cap- officers,military Cap- police officers,military offi- policeofficers,by name, offi- policePeople’sby name, offi-Daily, People’s bythe name, offi- Daily, People’sbenefits the offi-Daily, from thebenefits serving offi- fromasbenefits a mid- serving fromon as servingnearly a mid- 90,000 ason a mid- nearly movie on 90,000screens nearly movie 90,000 screens movie screens closureMr. reports Wen helped remainMr. found, Wen secret; NewhelpedMr. Hori- Wenwant found, helped to New implement found, Hori- New reform, Hori- their that Zeng Wei,closure the son reports of China’s remainselves. secret; “Thewant party to implement has said an- reform,munist their Partythat promising Zeng Wei, to the over- son of China’s selves. “The party has said an- munist Party promising to over- their own interests. zon, invested zon, in the invested companyzon, in invested inthe companyital inCorporation, their the in companyownital interests. one Corporation, in of theital coun- Corporation, one ofcials.We’re the onecoun- of the talkingcials.We’re coun- aboutcials.We’re talking hun- aboutcial talking Communist hun- aboutcial hun- Party Communist cial newspa- Communist Partydleman newspa- Party to government newspa-dleman to contracts dlemangovernment to governmentacross contracts the country. contractsacross Government theacross country. the Government country. Government proposals to make them public children might say, ‘Dad, what former viceproposals president Zeng to make Qing- themticorruption public children efforts are might a life-and- say, ‘Dad,haul what the nation’sformer media vice president and cul- Zeng Qing- ticorruption efforts are a life-and- haul the nation’s media and cul- Chinese officials and their rela- 2009, according2009, to according Xidelong’s2009, according to try’s Xidelong’s biggestChinese to Xidelong’s try’s investment officials biggest andtry’s banks, their investment biggest rela-dreds investment banks, of thousandsdreds banks, ofof peoplethousandsdreds out of thousandsofper, people denounced outof peopleper, fortune out denounced per, seekers denounced fortuneor holding seekers fortune an executiveor seekers holding post oran holding executive at a anoffices postexecutive andat a schools postoffices at were aand offices orderedschools and were schools ordered were ordered have been shelved repeatedly by about my business?’” hong, boughthave a $32been million shelved man- repeatedlydeath by issue,”about Mr. my Li said.business?’” “But if tural industries,hong, the bought relatives a $32 of million man- death issue,” Mr. Li said. “But if tural industries, the relatives of tives rarely discuss such a del- Web site.) “ThereWeb site.)are soWeb “There many site.) are in “There 1998 so tives many and are rarelyhas soin served many1998 discuss and asin its has such1998 chief served and a del- therehas as itsserved —chief all as trying itsthere chief to— useallthere trying their — all towho usetrying stain their to the usewho party’s their stain purity who the party’s stain by thestate purity party’s monopoly. by puritystate bymonopoly.state monopoly.to buy tickets toin buybulk. tickets Theto mediabuy in bulk.tickets The in mediabulk. The media the party-controlled legislature. sion in Sydney,the party-controlled Australia — are legislature.they want to clean house, it may China’s politicalsion in elite Sydney, are at Australia the — are they want to clean house, it may China’s political elite are at the icate issue publicly. The New ways to partnerways with to the partner waysfamilies towithThere partner theexecutive arefamilies icatewith also forthe issue growingthe familiesexecutive past publicly. decade. con- forexecutive the The past New for connectionsdecade. the past decade. toconnections make money.”connections to make money.”smuggling to makeThere money.” ill-gotten smuggling are also gains growingsmuggling ill-gotten out of con- gains ill-gottenJeffrey out ofZeng, gains the outJeffrey son of ofZeng, theJeffrey for-the son Zeng,was of thethebanned for-son offrom wasthe criticizingfor-bannedwas from it.banned It criticizing from criticizingit. It it. It The party is unlikely to move ignored by theThe Chinese-language party is unlikely be to fatal.” move head of the ignoredcrowd scrambling by the Chinese-language for be fatal.” head of the crowd scrambling for York Times made repeated at- of those in power,”of those said inof one power,” thosecerns fi- in said that power,”Efforts one aYork culture fi- tosaid Times open of oneEfforts nepotismthe made fi- power to repeated openEfforts sec- the to at-power openTo shore thesec- power up confidenceTo sec- shore upTo in confidence the shore the up country. confidencecerns in the thatthe in a country. culture the the of country. nepotismmer Politburo mermember Politburo Zengmer memberPei-Politburobecame Zeng member Pei- one Zeng ofbecame last Pei- year’s onebecame of top- last one year’s of last top- year’s top- more aggressively because fam- news mediamore and aggressively blocked by In- becauseChinese fam- tycoons have also footholds innews a new mediafrontier. and blocked by In- Chinese tycoons have also footholds in a new frontier. tempts to reach public officials nance executivenance who executive hasnance workedand whoexecutive privilege hastor toworked temptswho competition,nurtured has to torworked reach at to the for competition, publictop example,tor to officials competition, forgovernment’s example, for example, government’sability to tacklegovernment’s ability the to tackleSome abilityand the scholars privilegeto tackleSome argue thenurtured scholars thatSome at the the argue scholars topyan, that is argue the a managing thatyan, the is partner a yan, managing is at a managinggrossing partner films. at partnergrossing at films.grossing films. ilies of high-ranking past and cur- ternet censors.ilies of high-ranking pastbeen and cur- quietly welcomed into the The Februaryternet censors. announcement been quietly welcomed into the The February announcement and their relatives for this article, with the relativeswith ofthe senior relativeswith lead- ofthe theof relatives senior could systemand affectlead- of has theirsenior the flowed couldrelatives interestslead- affect down- forcould ofthe this rela- interestsaffect article,problem, the of interests rela- high-ranking problem,of rela- problem, high-ranking leaders high-rankingparty leadersof is the now system hostageparty leaders has is to now partyflowed its hostage own is down- nowKaixin to hostage its ownInv estments, to Kaixin its own Inv a venture-Kaixinestments, Inv estments, a Scholars venture- a describe venture-Scholars the film describeScholars in- the describe film in- the film in- rent officials are now deeply em- Allegationsrent of officialsbribery areand nowcor- deeplyfamilies em- of senior leaders, often of the deal betweenAllegations DreamWorks of bribery and cor- families of senior leaders, often of the deal between DreamWorks often through their companies. ers. “Just makeers. them “Just part makeers. of your“Just ward,them make parttives permeating ofthem oftenof your Li partPeng, through bureaucraciestives of youra formerof their Li tivesPeng, companies.prime of a Liformer Peng,regularly prime a former inveighregularly prime against inveighregularly greedy against inveighunholy greedyward, againstalliances. permeating unholygreedy Cheng alliances. Li, bureaucraciesunholy an ex- Cheng alliances.capital Li, an Cheng firm ex- set Li,capital upan withex- firm twocapital set state- up firm withdustry set two up state- aswith the two newdustry state- playground as thedustry new for as playground the new playground for for bedded in the economic fabric of ruption againstbedded the in nation’s the economic top throughfabric of secret partnerships in and three Chineseruption against partners, the in- nation’s top through secret partnerships in and three Chinese partners, in- None of those reached agreed to deal; it’s perfectlydeal; legal.” it’s perfectlydeal;at it’s everylegal.” perfectlyminister. levelNone legal.” ofLi of governmentXiaolin, thoseminister. reachedhis Lidaughter, minister. in Xiaolin, agreed Lihis officials toXiaolin, daughter, caught his daughter,officials with their caughtofficials hand with in caught theirpert hand withonat everyChinese theirin perthand level politics on in of Chinese government pertwith onthe politics Chinese owned in with politics entities,the withowned China the entities, Develop-owned China entities,princelings. Develop- China Zhang Develop-princelings. Xiaojin,princelings. Zhang direc- Xiaojin, Zhang direc- Xiaojin, direc- the nation. Over the past two dec- leaders typicallythe nation. follow Over — rather the past whichtwo dec- the sons, daughters, cluding Shanghaileaders Alliance typically Invest- follow — rather which the sons, daughters, cluding Shanghai Alliance Invest- comment on the record. Worried aboutWorried the appearance aboutWorriedChina. the appearanceaboutis “After thecomment the chairwomana while appearanceis onyou the the realize, and chairwoman record. chiefis the ex- chairwoman andthe chief till. In ex- and 2008, chiefthe for till. instance, ex- In 2008,the atill. for for- In instance, 2008,Brookings forChina. a instance, for- Institution“AfterBrookings a for-a while in Brookings Institutionyou Wash- realize, ment Institution in Wash-Bank and inment Wash-Citic Bank Capital.ment and LiuCiticBank Capital. torand of Citic the Liu Capital. Centertor of Liu thePolitical Centertor of De- the of Political Center of De- Political De- ades, business and politics have than precedeades, — a businessfall from andpoliti- politicsspouses have and close relatives act as ment, was timedthan precede to coincide — a with fall from politi- spouses and close relatives act as ment, was timed to coincide with DreamWorks and Microsoft of improprietyof and impropriety growingof impropriety pub- andwow, growing thereecutive and are pub- DreamWorks ofgrowing actually Chinaecutive pub- Power a lot of and ecutive ofInterna-China Microsoft Power of Chinamer Interna- Shanghai Power Interna-mer Party Shanghai secretary,mer ShanghaiPartyington, secretary, Partywow, said there secretary, itington, would are actually said be ington, difficult it would a said lot Lefei, beof it difficult would the son be Lefei, difficultof another the son Lefei,Politbu- of theanother sonvelopment ofPolitbu- another at TsinghuaPolitbu-velopment Universi-velopment at Tsinghua at Universi-Tsinghua Universi- become so tightly intertwined, cal grace. Mr.become Bo’s downfall so tightly this intertwined,middlemen or co-investors in real the high-profilecal grace. visit to Mr. the Bo’s Unit- downfall this middlemen or co-investors in real the high-profile visit to the Unit- declined to comment about their lic disgust withlic disgustofficial lic corrup- with disgustprincelings official tional, with corrup- declined out official the there,” flagship tional,to corrup- said comment of Victor the one tional, flagship about of the the their of flagshipChen one ofLiangyu, the of oneChen was of the Liangyu,sentencedChen was Liangyu,to sentencedfor thewasprincelings Chinesesentencedto for out government the tothere,” Chinesefor said the to governmentVictor Chinesero member, government to Liuro member,Yunshan, to ro Liu helpsmember, Yunshan,ty, Liu said, helpsYunshan, “Therety, arehelpssaid, cases “Therety, wheresaid, are “There cases whereare cases where they say, that the Communist spring, for they instance, say, came that afterthe Communistestate projects or other deals that ed States ofspring, Xi Jinping, for instance, China’s came after estate projects or other deals that ed States of Xi Jinping, China’s relationship with Mr. Jiang. tion, the Communisttion, the Party Communisttion, Shih, has the Communist abig Party China fiverelationship power has scholar Party biggenerating atwithfive has North- powerMr.big compa-Jiang. fivegenerating power18 years generating compa- in prison 18compa- years for bribery in18 prison years and for in briberyprisonpush Shih, through for and bribery a China push major and through scholar politicalpush atmajor re-through North- politicaloperate major the re- political $4.8operate billion re- the Citicoperate $4.8 Pri- billion thepropaganda $4.8 Citic billion Pri- Citicpropaganda ministry Pri- propaganda officials ministry ministry officials officials Party has effectively institution- his former policeParty chief has effectivelyin Chong- institution-need government approval or vice presidenthis former and presumptive police chief in Chong- need government approval or vice president and presumptive A secret United States State repeatedly revisedrepeatedly itsrepeatedly revisedethicswestern nies its revisedUniversity inethics A China. secret its near nies ethics Her United Chicago, in brother, China. nies States in Her Li State China. abuse brother, Her of power. Li brother,abuse One Liof hispower.abuse crimes One of power. offorms his crimesOnewestern aimed of his University atforms crimes extricating aimed formsnear at pow- Chicago, extricating aimedvate at Equity extricating pow- Fund,vate pow- oneEquity ofvate the Fund, big-Equity onespecifically Fund,of the onebig- of ask specificallythe their big- childrenspecifically ask their to children ask their to children to alized an entire ecosystem of cro- qing told alized American an entire diplomats ecosystembacking, of cro- according to investors next president.qing The told news American release diplomats backing, according to investors next president. The news release Department cable from 2009, re- codes and tightenedcodes andfinancial tightenedcodes dis-using and financial tightenedXiaopeng, theDepartment dis- labelfinancial was Xiaopeng, formerly commonly cabledis- fromtheXiaopeng,was head formerly 2009, was re-was the formerly pressinghead thewas businessmenhead pressingwas businessmenpressing to erful businessmenusingpolitical to thefamilieserful political tolabel fromerful commonlybusi-families politicalgest from families state-managed busi- fromgest busi- state-managed funds.gest Last state-managed funds.make films Last funds. whichmake Last they films thenmake which ap- films they which then they ap- then ap- ny capitalism. “They don’t want that Mr. Bo’sny wife, capitalism. Gu Kailai, “They had don’twho want have been involved in such did not mentionthat thatMr. Bo’sShanghai wife, Al-Gu Kailai, had who have been involved in such did not mention that Shanghai Al- leased two years ago by the Wiki- closure rules. closure In its latest rules.closure itera- Inslapped its rules. latestof on another In leaseddescendants itera- its latest two bigof years poweritera- another of party ago companyof by big another the power Wiki- funnel big company power benefits companyfunnel to his benefits closefunnel rela- to benefits hisness close toslappedwithout rela- his close givingonness descendants rela- without immunityness giving withoutof to party immunityyear, giving Alvin toimmunity Jiang,year, the Alvinto grandsonyear, Jiang, Alvin of the grandsonprove.”Jiang, the of grandsonprove.” of prove.” to bring this into the open,” said ordered theto murder bring thisof Neil into Hey- the open,”transactions. said liance is partlyordered controlled the murder by Mr. of Neil Hey- transactions. liance is partly controlled by Mr. Leaks project, cited reports that tion, the party tion,in 2010 the required partytion, in theleaders. all2010 party requiredand “You’ve in isLeaks 2010 now all required gota project,public andthe is children official.all citednow anda reportspublic is now official. that atives, public including official.tives, a land including dealtives, that a including landthose deal leaders. anow thatland in dealpower. “You’vethose that now got inthose the power. childrennow informer power. presidentformer Jiang presidentformer Zemin, president JiangZhao Zemin, Xiao, Jiang an Zemin, Zhaoeconomist Xiao, Zhao atan the economist Xiao, an economistat the at the Roderick MacFarquhar, a China wood, a BritishRoderick businessman, MacFarquhar, in a a Moreover, China China’s leading po- Jiang, the sonwood, of a Britishformer businessman,presi- in a Moreover, China’s leading po- Jiang, the son of a former presi- China’s ruling elite had carved up officials to reportofficials the jobs, to officialsreport where-of thecurrent to jobs,report“This officials, where-China’s the is jobs, one theruling where- ofchildren“This the elite mostis had of one“This carved diffi- of the is upnetted one most of diffi- thehis brother,mostnetted diffi- Chen his netted brother, Liang- his Chen brother,And Liang-of withcurrent Chen no officials, Liang-independentAnd with the noAnd children judi- independent withhelped ofno independent judi- establishhelped Boyujudi- establish Capital,helped Boyu a establishUniversity Capital, Boyu a of Capital, University Science a andUniversity of Tech- Science of and Science Tech- and Tech- specialist at Harvard University. dispute overspecialist the family’s at Harvard busi- University.litical families, often through in- dent, Jiang disputeZemin. A over person the who family’s busi- litical families, often through in- dent, Jiang Zemin. A person who the country’s economic pie. At abouts and investmentsabouts and abouts of investments their andcult investments ofchallengesthe their country’s cult of China their challenges economic faces,”cult challengessaid China pie. jun, Atfaces,” aChina $20 said million faces,”jun, profit. said a $20 millionjun, a $20 profit. millionciary profit. in China,ciary he in said, China,ciary party in he China, said,private party he equity said,private firm party that equity private is on firm its equity thatnology is firm on in thatitsBeijing, isnology on said, its in “They Beijing,nology are insaid, Beijing, “They said, are “They are “It would be a tsunami.” ness interests.“It would be a tsunami.” termediaries, hold secret shares answered theness telephone interests. at the termediaries, hold secret shares answered the telephone at the the same time, many companies spouses and children,spouses asandspouses well children, as andMr. as children, wellPei,the an sameas as authority Mr. well time, Pei, as many on anMr. China’s authority companies Pei, an on authorityBut China’s exposés on China’s But in the exposés foreignBut in exposés theleaders foreign in would the leaders foreign essentially wouldleaders be essentially wouldway to essentially raising be wayat least to be raising $1 billion.way at to least raising everywhere,$1 billion.at least $1 billion. aseverywhere, long aseverywhere, the as in- long as as the long in- as the in- Critics charge that powerful Evidence hasCritics surfaced charge of that at powerfulin dozens of companies, including Shanghai AllianceEvidence office hashere surfacedde- of at in dozens of companies, including Shanghai Alliance office here de- openly boast that their ties to the their own incomes.their own But their incomes. the dis- own But incomes.leadership. theopenly dis- But boast the“Wheneverleadership. dis-that theirleadership. “Wheneverties they to the press “Whenever — they likepress the they report — likepress in the 2010 — report likecharged the in 2010report with investigatingcharged in 2010 withcharged them-investigating with Mostinvestigating them- recently, them-Most with recently, the Most Com- with recently,dustry the Com- withis profitable.” thedustry Com- is profitable.”dustry is profitable.” political elite give them a compet- vested interests are now strong political elite give them aleast compet- $160 millionvested ininterests assets areheld nowmany strong that are publicly listed in clined to comment.least $160 million in assets held many that are publicly listed in clined to comment. itive advantage in China’s highly enough to block reforms that Fears ofitive a backlash advantage in China’sby highly close relativesenough of Bo to Xilai, block and reformsHong that Kong,Fears Shanghai of anda backlash else- Zeng Qinghuai,by close the relatives brother of ofBo Xilai, and Hong Kong, Shanghai and else- Zeng Qinghuai, the brother of regulated marketplace. could benefit the larger populace. against regulateda culture marketplace. of the authoritiescould are benefit investigating the larger populace.where, accordingagainst to interviewsa cultureZeng of Qinghong,the authorities China’s former are investigating where, according to interviews Zeng Qinghong, China’s former A Chinese sportswear compa- Changes in banking and financial A Chinese sportswearwhether compa- otherChanges assets in held banking by the and withfinancial bankers and investment ad- vice president,whether is also other in the assets film held by the with bankers and investment ad- vice president, is also in the film ny called Xidelong, for example, services, for instance, could af- ‘Red Nobility.’ny called Xidelong, for example,family mayservices, have been for secretly instance, couldvisers. af- Lately,‘Red the progenyNobility.’ of the business. Hefamily served may as a haveconsult- been secretly visers. Lately, the progeny of the business. He served as a consult- proudly informed some potential fect the interests of the family of proudly informed some potentialand illegallyfect moved the offshore.interests of the familypolitical of elite have retooled the ant for theand patriotic illegally epic moved “Be- offshore. political elite have retooled the ant for the patriotic epic “Be- investors that one of its share- Zhu Rongji, China’s prime min- investors that one of its Wen share- Jiabao,Zhu Rongji,the prime China’s min- primespoils min- system for a new era, mov- ginning of theWen Great Jiabao, Revival.” the prime min- spoils system for a new era, mov- ginning of the Great Revival.” holders was the son of Wen Jia- ister from 1998 to 2003 and one of holders was the son of Wenister, Jia-respondedister fromby demanding 1998 to 2003 a anding one into of high-finance ventures The film exemplifiedister, responded the hand-in- by demanding a ing into high-finance ventures The film exemplified the hand-in- bao, according to one of the in- the architects of China’s econom- previous officials,bao, according the children to oneof ofmore the forceful in- the crackdown architects ofon China’s cor- likeeconom- privateprevious equity funds, officials, where the childrenglove relationshipof more forceful between crackdown busi- on cor- like private equity funds, where glove relationship between busi- vestors. (A private equity firm ic system. His son, Levin Zhu, local officials,vestors. central (A private officials, equityruption. firm Withoutic system. naming His Mr. son, Bo Levinthe Zhu,potentiallocal returns officials, dwarf central the ness officials, and politics.ruption. It Without was shown naming Mr. Bo the potential returns dwarf the ness and politics. It was shown Mr. Wen helped found, New Hori- joined China International Cap- military officers,Mr. Wen helped police found, offi- Newby name,Hori- People’sjoined ChinaDaily, the International offi- benefits Cap- frommilitary serving officers, as a mid- policeon nearly offi- 90,000by name, movie People’s screens Daily, the offi- benefits from serving as a mid- on nearly 90,000 movie screens zon, invested in the company in ital Corporation, one of the coun- cials.We’re zon, talking invested about in thehun- companycial Communist in ital Corporation, Party newspa- one of thedleman coun- to governmentcials.We’re contracts talking aboutacross hun- the cial country. Communist Government Party newspa- dleman to government contracts across the country. Government 2009, according to Xidelong’s try’s biggest investment banks, dreds of thousands2009, according of people out to Xidelong’sper, denouncedtry’s fortune biggest seekers investmentor banks,holding andreds executive of thousands post at ofa peopleoffices out and per,schools denounced were ordered fortune seekers or holding an executive post at a offices and schools were ordered Web site.) “There are so many in 1998 and has served as its chief there — allWeb trying site.) to “There use their are sowho many stain thein 1998 party’s and has purity served by asstate its chief monopoly.there — all trying to useto buy their ticketswho in stainbulk. The the party’smedia purity by state monopoly. to buy tickets in bulk. The media ways to partner with the families executive for the past decade. connectionsways to make to partner money.” with thesmuggling families ill-gottenexecutive gainsfor the out past of decade.Jeffrey Zeng,connections the son ofto themake for- money.”was bannedsmuggling from criticizing ill-gotten it. It gains out of Jeffrey Zeng, the son of the for- was banned from criticizing it. It of those in power,” said one fi- Efforts to open the power sec- To shore of up those confidence in power,” in the saidthe one country. fi- Efforts to open the powermer Politburosec- To member shore upZeng confidence Pei- became in the onethe of country. last year’s top- mer Politburo member Zeng Pei- became one of last year’s top- nance executive who has worked tor to competition, for example, government’snance ability executive to tackle who the has workedSome scholarstor to argue competition, that the for example,yan, is a managinggovernment’s partner ability at to tacklegrossing the films.Some scholars argue that the yan, is a managing partner at grossing films. with the relatives of senior lead- could affect the interests of rela- problem, high-rankingwith the relatives leaders of seniorparty lead- is nowcould hostage affect to the its interests own Kaixin of rela- Investments,problem, ahigh-ranking venture- leadersScholars party describe is now the hostagefilm in- to its own Kaixin Investments, a venture- Scholars describe the film in- ers. “Just make them part of your tives of Li Peng, a former prime regularly inveighers. “Just against make greedy them partunholy of your alliances.tives ofCheng Li Peng, Li, an a ex- formercapital prime firm regularlyset up with inveigh two state- againstdustry greedy as theunholy new playgroundalliances. Cheng for Li, an ex- capital firm set up with two state- dustry as the new playground for deal; it’s perfectly legal.” minister. Li Xiaolin, his daughter, officials caughtdeal; with it’s theirperfectly hand legal.” in pert on Chineseminister. politics Li Xiaolin, with the his daughter,owned entities,officials China caught Develop- with theirprincelings. hand in pert Zhang on Xiaojin,Chinese direc- politics with the owned entities, China Develop- princelings. Zhang Xiaojin, direc- Worried about the appearance is the chairwoman and chief ex- the till. In 2008,Worried for instance, about a the for- appearanceBrookings is Institution the chairwoman in Wash- and chiefment ex-Bank theand till. Citic In 2008,Capital. for Liuinstance,tor a of for- the CenterBrookings of Political Institution De- in Wash- ment Bank and Citic Capital. Liu tor of the Center of Political De- of impropriety and growing pub- ecutive of China Power Interna- mer Shanghaiof impropriety Party secretary, and growingington, pub- saidecutive it would of be China difficult Power Lefei, Interna- the sonmer of another Shanghai Politbu- Party secretary,velopment atington, Tsinghua said Universi- it would be difficult Lefei, the son of another Politbu- velopment at Tsinghua Universi- lic disgust with official corrup- tional, the flagship of one of the Chen Liangyu,lic disgust was sentenced with official to for corrup- the Chinesetional, government the flagship to of onero of member, the Chen Liu Liangyu, Yunshan, was helps sentencedty, said, to “Therefor the are Chinese cases where government to ro member, Liu Yunshan, helps ty, said, “There are cases where tion, the Communist Party has big five power generating compa- 18 years in prisontion, the for bribery Communist and Partypush has throughbig majorfive power political generating re- operate compa- the18 $4.8 years billion in prison Citic Pri-for briberypropaganda and push ministry through officials major political re- operate the $4.8 billion Citic Pri- propaganda ministry officials repeatedly revised its ethics nies in China. Her brother, Li abuse of power.repeatedly One of his revised crimes itsforms ethics aimednies at extricating in China. Her pow- brother,vate Equity Li abuse Fund, of one power. of the One big- of hisspecifically crimes forms ask their aimed children at extricating to pow- vate Equity Fund, one of the big- specifically ask their children to codes and tightened financial dis- Xiaopeng, was formerly the head was pressingcodes businessmen and tightened tofinancialerful dis-politicalXiaopeng, families wasfrom formerly busi- gestthe head state-managedwas pressing funds. businessmen Last make films to erful which political they thenfamilies ap- from busi- gest state-managed funds. Last make films which they then ap- closure rules. In its latest itera- of another big power company funnel benefitsclosure to his rules. close In rela- its latestness itera- withoutof giving another immunity big power to companyyear, Alvin Jiang,funnel the benefits grandson to his of closeprove.” rela- ness without giving immunity to year, Alvin Jiang, the grandson of prove.” tion, the party in 2010 required all and is now a public official. tives, includingtion, the a land party deal in 2010 that requiredthose nowall inand power. is now a public official.former presidenttives, including Jiang Zemin, a land dealZhao that Xiao,those an economist now in power. at the former president Jiang Zemin, Zhao Xiao, an economist at the officials to report the jobs, where- “This is one of the most diffi- netted his brother,officials to Chen report Liang- the jobs, where-And with no“This independent is one of judi- the mosthelped diffi- establishnetted Boyu his brother, Capital, Chena University Liang- of And Science with andno independent Tech- judi- helped establish Boyu Capital, a University of Science and Tech- abouts and investments of their cult challenges China faces,” said jun, a $20 millionabouts profit. and investmentsciary of their in China,cult challenges he said, China party faces,”private said equityjun, firma $20 that million is on profit. its nology in Beijing,ciary said, in China, “They heare said, party private equity firm that is on its nology in Beijing, said, “They are spouses and children, as well as Mr. Pei, an authority on China’s But exposésspouses in and the children, foreign asleaders well as wouldMr. Pei, essentially an authority be onway China’s to raisingBut at least exposés $1 billion. in the everywhere, foreign leaders as long would as the essentially in- be way to raising at least $1 billion. everywhere, as long as the in- their own incomes. But the dis- leadership. “Whenever they press — liketheir the own report incomes. in 2010 But charged the dis- withleadership. investigating “Whenever them- Most they recently,press —with like the the Com- reportdustry in 2010 is profitable.”charged with investigating them- Most recently, with the Com- dustry is profitable.” Nxxx,2012-05-18,A,014,Bs-BW,E1

A14 N THE NEW YORK TIMES INTERNATIONAL FRIDAY, MAY 18, 2012 Concern About Stability Gives Chinese Officials Leeway to Crush Dissent

By MICHAEL WINES even reward local leaders for do- Neither action by the local au- LINYI, China — The central ing so. The reason is that their thorities was legal. “They used government says that the activist Communist Party careers de- the justification of the one-child Chen Guangcheng is a free man, pend on meeting a series of per- policy and stability mainte- and has promised him an investi- formance goals — from high eco- nance,” said Pu Zhiqiang, a gation of the harrowing abuses nomic growth to low levels of prominent human rights lawyer. he suffered at the hands of public unrest — whose impor- After the detention generated guards here. Mr. Chen’s desper- tance far outweigh any gold stars international headlines, Mr. Co- ate escape last month from per- awarded for following the law. hen said, the public security min- secution to American protection That system gives leaders an ister sent emissaries to Shan- has embarrassed China’s leaders incentive to silence troublemak- dong to discuss the case. Later, in and cast new shadows on their ers by any means in order to win 2006, Mr. Chen was convicted and commitment to the rule of law. high marks for maintaining pub- imprisoned on what experts said But a visit to this municipality lic stability, one of the most im- were trumped-up charges, and in eastern China, where Mr. Chen portance performance metrics. It his detention gained a legal basis. and his family most recently can uncork gushers of money for But when he was released from spent 20 months as prisoners in added security measures to keep prison in September 2010, Mr. their own home, offers no hint of control of a high-profile activist Chen again found himself and his a change in the way China deals like Mr. Chen. family sealed inside their village with its dissidents. And it can pay off for the local home, this time surrounded by a Journalists who sought on Sun- leaders who do the job well. The cordon of fences and security day to talk to residents a few hun- man Mr. Chen has blamed most equipment and a contingent of dred yards from Dongshigu, the for his detention and imprison- guards around the clock. village in Linyi where Mr. Chen ment is Li Qun, who was mayor For the layers of government was held captive, were quickly of Linyi from 2003 to 2007. Just a overseeing Dongshigu, Mr. escorted out by thugs in four few years before that, Mr. Li was Chen’s destitute, remote village, cars, and later were accosted in a studying public administration at detention has become a lucrative burst of arm-wrenching and the University of New Haven and industry. Mr. Chen has claimed name-calling. an intern to the New Haven may- ED JONES/AGENCE FRANCE-PRESSE — GETTY IMAGES that his captors told him it cost or, John DeStefano Jr. about $9.5 million annually to Members of the same gang still Security guards barred reporters from seeing Chen Guangcheng at a Beijing hospital on May 4. keep Mr. Chen’s mother under Mr. Li has since been promoted keep him under house arrest. siege here. Mr. Chen’s nephew to party secretary of Shandong’s The target of that smothering faces a charge of attempted mur- biggest port, Qingdao, and he sits all the other local officials that the tool of choice to deal with dis- security is now in a Beijing hospi- der after he slashed a knife at on the province’s Communist A system geared to there’s a different way of doing sidents and troublemakers. tal, preparing to move with his plainclothes officers who invaded Party standing committee, its allowing local leaders things now. And that would be a A self-taught lawyer who is wife and daughter to the United his home and beat him. Lawyers highest ruling body. very fundamental change.” blind, Mr. Chen crusaded for so- States to study law. But the costly seeking to defend the nephew Only when local measures to ignore the law. A serious inquiry also would cial justice in his native Shan- crackdown continues unabated. have been ordered to drop the blow up into national or global send a signal that when enough dong Province, and in the pro- Outside Dongshigu, police case or face retribution. embarrassments, as they have in publicity and pressure is brought cess imperiled party officials’ vans dot the highway, their lights There is no evidence that the Mr. Chen’s case, is the central hen said. “I can tell you that there to bear, the Communist Party can record not only on keeping order, flashing, and carloads of plain- be forced to change. but also on another important clothes guards roam side roads, government in Beijing ordered government obliged to step in are thousands of cases like this.” this harassment, all of which is il- and order face-saving measures “The main problem with Bei- measure: enforcing the one-child their license plates sometimes To those who study the system, legal under Chinese law. But like investigations. In countless jing is that very often, they con- population-control policy. covered in camouflage cloth. its success makes it unlikely that there is also no any indication other instances, the experts say, done injustices even though they In August 2005, after he began On Sunday, when journalists that Beijing wants it to stop. Beijing quietly tolerates local offi- party leaders will use the embar- know that the local authorities a deftly publicized campaign to sought to visit Mr. Chen’s home In fact, both rights activists cials’ lawlessness, and they do so rassment of the Chen episode to are in the wrong,” said Nicholas help citizens sue the local govern- in Dongshigu, about 33 miles and legal experts say, the system for a simple reason: with rare ex- push for changes that could Bequelin of Human Rights Watch ment over forced late-term abor- from Linyi, they were quickly for dealing with dissidents and ceptions, the system is exceed- themselves prove destabilizing. in Hong Kong. “But many of the tions and sterilizations, the re- and roughly escorted away by se- other troublemakers is geared to- ingly efficient at stifling unrest. “It would have implications not problems that come up in these action was swift: a mob sur- curity guards in plain clothes. ward allowing local leaders to ig- Jerome Cohen, a law professor just in one city or one county, but cases are not isolated — they’re rounded Mr. Chen’s village home, Later, in Yinan, the county seat, nore the law, with Beijing’s some- at New York University and an for the entire country,” Fu Hual- endemic. And Beijing fears that trapping the family inside for one man attacked a photogra- times silent assent. adviser to Mr. Chen, said he was ing, a law professor at Hong backing down on one case would weeks. Foreshadowing the pher who was recording a report- The central government may told by a prominent Chinese Kong University, said in an in- open the floodgates.” events of this spring, Mr. Chen er’s attempt to question him. criminal lawyer that cases like terview. “This is how they govern Mr. Chen’s case, one of the few and a nephew eventually escaped “Get out of China,” the man Shi Da contributed research from Mr. Chen’s were not unusual. the population. If you punish the to get prolonged public scrutiny, to Beijing, only to be seized there yelled at a Chinese news assist- Dongshigu, China, and Edy Yin “They’re only unusual because local government, if you dismiss offers some insights into the in- and returned home by police offi- ant. “You’re not Chinese. You’re from Beijing. you know about them,” Mr. Co- the officials, then you have to tell centives that make repression cers sent from Shandong. a traitor.” In Economic Rise, China’s ‘Princelings’ Learn to Cash In on Their Family Ties

From Page A1 Power and Profit official, helped Merrill Lynch win Family members of many high-ranking officials have profited enormously from China's economic boom, a deal to arrange the $22 billion often through businesses tied to the state. Below, some top Party leaders, and important relatives. public listing of the giant state- run bank I.C.B.C., in what be- came the world’s largest initial public stock offering. Much of the income earned by families of senior leaders may be entirely legal. But it is all but im- possible to distinguish between legitimate and ill-gotten gains be- cause there is no public disclo- HU JINTAO WEN JIABAO JIANG ZEMIN LI PENG WU BANGGUO sure of the wealth of officials and China's president Prime minister Former president Former prime minister China's top legislator their relatives. Conflict-of-inter- est laws are weak or nonexistent. And the business dealings of the political elite are heavily cen- sored in the state-controlled Hu Haifeng Wen Yunsong Zhang Beili Jiang Mianheng Alvin Jiang Li Xiaolin Li Xiaopeng Feng Shaodong news media. Son Son Wife Son Grandson Daughter Son Son-in-law The spoils system, for all the efforts to keep a lid on it, poses a Served as party Mr. Wen’s son, also According to a Partly controls Announced plans Chairwoman and Former chairman Also known as fundamental challenge to the le- secretary to known as Winston U.S. State Shanghai Alliance to raise $1 billion chief executive of of a state- Wilson Feng, he is gitimacy of the Communist Party. Tsinghua Holdings, Wen, is the Department Investments, a for his investment China Power controlled power the general As the state’s business has be- an umbrella chairman of the cable, she state-backed fund, Boyu International, the company until manager of a come increasingly intertwined company, from late state-owned China controls part of company that Capital, which was flagship of one of 2008; now vice nuclear power with a class of families some- 2008 to 2009. Satellite the precious invested in a formed with a China’s big five governor of Shanxi investment fund times called the Red Nobility, an- Before that, he was Communications gems market. Microsoft joint former executive power generating Province. established by the alysts say the potential exists for president of a Corporation and venture and in from TPG, the companies. state-owned a backlash against an increas- state-controlled firm the co-founder of China Netcom, as American private Guangdong ingly entrenched elite. They also that made scanners New Horizon, a big well as a recent equity giant. Nuclear Power point to the risk that national pol- to detect contraband private equity firm. DreamWorks deal. Holding icies may be subverted by lead- or dangerous Corporation. ers and former leaders, many of materials. whom exert influence long after THE NEW YORK TIMES their retirement, acting to protect their own interests. closure reports remain secret; want to implement reform, their that Zeng Wei, the son of China’s selves. “The party has said an- munist Party promising to over- Chinese officials and their rela-seniorproposals leaders tomay make be thementirely public legal.children But mightit is say, ‘Dad,Worried what aboutformer the vice appearance president Zeng of Qing- impropriticorruption- efforts are a life-and- haul the nation’s media and cul- tives rarely discuss such a all del- buthave impossible been shelved to repeatedly distinguish by betweenabout my business?’” le- ety and growinghong, public bought disgust a $32 millionwith official man- cordeath- issue,” Mr. Li said. “But if tural industries, the relatives of the party-controlled legislature. sion in Sydney, Australia — are they want to clean house, it may China’s political elite are at the icate issue publicly. The Newgitimate and ill-gotten gains becauseThere there are is also ruption, growing con-the Communist Party has repeatedly York Times made repeated at- The party is unlikely to move cerns that a culture of nepotism ignored by the Chinese-language be fatal.” head of the crowd scrambling for tempts to reach public officialsno publicmore disclosure aggressively of because the wealth fam- and of privilegeofficials nurtured revised at the its top ethicsnews codes media and and tightened blocked by financial In- Chinese tycoons have also footholds in a new frontier. and their relatives for this article,and theirilies ofrelatives. high-ranking Conflict-of-interest past and cur- of the laws system are hasdisclosure flowed down- rules.ternet In itscensors. latest iteration, the partybeen quietly welcomed into the The February announcement often through their companies.weak orrent nonexistent. officials are now And deeply the businessem- ward, dealings permeating in bureaucracies 2010 requiredAllegations all officials of briberyto report and cor-the jobs,families of senior leaders, often of the deal between DreamWorks None of those reached agreed to bedded in the economic fabric of ruption against the nation’s top through secret partnerships in and three Chinese partners, in- of the political elite are heavily censoredat every in levelthe of governmentwhereabouts in and investments of their spouses comment on the record. the nation. Over the past two dec- China. “After a while you realize, leaders typically follow — rather which the sons, daughters, cluding Shanghai Alliance Invest- DreamWorks and Microsoftstate-controlledades, business news and media. politics have wow, there are actuallyand children, a lot of asthan well precede as their — a fallown from incomes. politi- Butspouses and close relatives act as ment, was timed to coincide with declined to comment about their Thebecome spoils so system, tightly for intertwined, all the effortsprincelings to keep out there,”the said disclosure Victor calreports grace. remain Mr. Bo’s secret; downfall proposals this middlemen or co-investors in real the high-profile visit to the Unit- relationship with Mr. Jiang. a lid onthey it, say, poses that a the fundamental Communist challengeShih, a China to scholarto make at North- them spring,public forhave instance, been shelved came after repeatestate- projects or other deals that ed States of Xi Jinping, China’s A secret United States State Party has effectively institution- western University near Chicago, his former police chief in Chong- need government approval or vice president and presumptive the legitimacyalized an entire of the ecosystem Communist of cro- Party. As the edly by the party-controlledqing told American legislature. diplomats backing, according to investors next president. The news release Department cable from 2009, re- using the label commonly ny capitalism. “They don’t want that Mr. Bo’s wife, Gu Kailai, had who have been involved in such did not mention that Shanghai Al- leased two years ago by the Wiki-state’s business has become increasinglyslapped interon descendants- The of party party is unlikely to move more aggres- to bring this into the open,” said ordered the murder of Neil Hey- transactions. liance is partly controlled by Mr. Leaks project, cited reports twined that with a class of families sometimesleaders. called “You’ve gotsively the children because families of high-ranking past Roderick MacFarquhar, a China wood, a British businessman, in a Moreover, China’s leading po- Jiang, the son of a former presi- China’s ruling elite had carved up of current officials, the children of the country’s economic pie.the At Redspecialist Nobility, at Harvard analysts University. say the potential ex- and current officialsdispute are over now the deeply family’s embedded busi- litical families, often through in- dent, Jiang Zemin. A person who the same time, many companiesists for“It woulda backlash be a tsunami.” against an in theness economic interests. fabric of the nation.termediaries, hold secret shares answered the telephone at the openly boast that their ties toincreasingly the Critics entrenched charge that powerfulelite. OverEvidence the past hastwo surfaceddecades, of business at in dozens of companies, including Shanghai Alliance office here de- political elite give them a compet-They vestedalso point interests to the are nowrisk strongthat andleast politics $160 millionhave become in assets so held tightlymany that are publicly listed in clined to comment. itive advantage in China’s highly enough to block reforms that Fears of a backlash by close relatives of Bo Xilai, and Hong Kong, Shanghai and else- Zeng Qinghuai, the brother of regulated marketplace. nationalcould policies benefit the may larger be populace. sub- against a culture of intertwined,the authorities they are say, investigating that the Comwhere,- according to interviews Zeng Qinghong, China’s former A Chinese sportswear compa-vertedChanges by leaders in banking and and former financial munistwhether Party other hasassets effectively held by the instiwith- bankers and investment ad- vice president, is also in the film ny called Xidelong, for example,leaders,services, many for of instance, whom could exert af- ‘Red Nobility.’ tutionalizedfamily may an have entire been ecosystem secretly visers. of Lately, the progeny of the business. He served as a consult- fect the interests of the family of and illegally moved offshore. political elite have retooled the ant for the patriotic epic “Be- proudly informed some potentialinfluence long after their retire- crony capitalism. “They don’t want investors that one of its share- Zhu Rongji, China’s prime min- Wen Jiabao, the prime min- spoils system for a new era, mov- ginning of the Great Revival.” holders was the son of Wen ment, Jia- isteracting from to 1998 protect to 2003 their and oneown of to ister,bring responded this into by demandingthe open,” a saiding into high-finance ventures The film exemplified the hand-in- bao, according to one of theinterests. in- the architects of China’s econom- previous officials, theRoderick children MacFarquhar,of more forceful acrackdown China specialist on cor- like at private equity funds, where glove relationship between busi- vestors. (A private equity firm Chineseic system. officials His son, and Levin their Zhu, relativeslocal officials,rarely centralHarvard officials, University.ruption. “It Without would naming be a tsunami.” Mr. Bo the potential returns dwarf the ness and politics. It was shown Mr. Wen helped found, New Hori- joined China International Cap- military officers, police offi- by name, People’s Daily, the offi- benefits from serving as a mid- on nearly 90,000 movie screens zon, invested in the companydiscuss in ital such Corporation, a delicate one ofissue the coun-publicly.cials.We’re The New talking aboutCritics hun- chargecial Communistthat powerful Party vested newspa- interdleman- to government contracts across the country. Government 2009, according to Xidelong’sYork Timestry’s biggest made investment repeated banks, attemptsdreds to of reach thousands ests of people are nowout per,strong denounced enough fortune to block seekers reformsor holding an executive post at a offices and schools were ordered Web site.) “There are so manypublicin officials 1998 and and has servedtheir relatives as its chief forthere this article, — all trying that to usecould their benefitwho the stain larger the party’s populace. purity Changes by state monopoly. to buy tickets in bulk. The media ways to partner with the familiesoften executivethrough fortheir the pastcompanies. decade. Noneconnections of those to makein money.” banking andsmuggling financial ill-gotten services, gains for out instance, of Jeffrey Zeng, the son of the for- was banned from criticizing it. It of those in power,” said one fi- Efforts to open the power sec- To shore up confidence in the the country. mer Politburo member Zeng Pei- became one of last year’s top- nance executive who has workedreachedtor agreed to competition, to comment for example, on the record.government’s abilitycould to tackle affect the the Someinterests scholars of arguethe family that the of Zhuyan, is a managing partner at grossing films. with the relatives of senior lead- DreamWorkscould affect the andinterests Microsoft of rela- problem,declined high-rankingto Rongji, leaders China’sparty prime is nowminister hostage from to its1998 own to 2003Kaixin Investments, a venture- Scholars describe the film in- ers. “Just make them part of yourcommenttives aboutof Li Peng, their a formerrelationship prime withregularly Mr. inveigh Ji- againstand one greedy of theunholy architects alliances. of Cheng China’s Li, an economic ex- capital firm set up with two state- dustry as the new playground for deal; it’s perfectly legal.” minister. Li Xiaolin, his daughter, officials caught with their hand in pert on Chinese politics with the owned entities, China Develop- princelings. Zhang Xiaojin, direc- Worried about the appearanceang. is the chairwoman and chief ex- the till. In 2008, for system.instance, aHis for- son,Brookings Levin Zhu, Institution joined in China Wash- Interment- Bank and Citic Capital. Liu tor of the Center of Political De- of impropriety and growing pub- A ecutivesecret of United China Power States Interna- State Departmentmer Shanghai Partynational secretary, Capitalington, Corporation, said it would one be of difficult the counLefei,- the son of another Politbu- velopment at Tsinghua Universi- lic disgust with official corrup-cable tional,from 2009, the flagship released of one two of years the Chen ago Liangyu,by the wastry’s sentenced biggest to investmentfor the Chinese banks, government in 1998 and to hasro member, Liu Yunshan, helps ty, said, “There are cases where tion, the Communist Party WikiLeaks has big five project, power generating cited reports compa- that18 years China’s in prison forserved bribery as and its chiefpush executive through major for the political past re-decade.operate the $4.8 billion Citic Pri- propaganda ministry officials repeatedly revised its ethics nies in China. Her brother, Li abuse of power. One of his crimes forms aimed at extricating pow- vate Equity Fund, one of the big- specifically ask their children to codes and tightened financialruling dis- Xiaopeng, elite had was carved formerly up the the head country’swas pressing eco- businessmenEfforts to to openerful political the power families sector from tobusi- compegest- state-managed funds. Last make films which they then ap- closure rules. In its latest itera-nomicof pie. another At the big same power time, company manyfunnel companies benefits to tition, his close for rela- example,ness without could givingaffect immunity the interests to year, of Alvin Jiang, the grandson of prove.” tion, the party in 2010 requiredopenly all and boast is now that a public their official. ties to the politicaltives, including elite a relatives land deal thatof Lithose Peng, now a in former power. prime minister.former president Jiang Zemin, Zhao Xiao, an economist at the officials to report the jobs, where- “This is one of the most diffi- netted his brother, Chen Liang- And with no independent judi- helped establish Boyu Capital, a University of Science and Tech- abouts and investments of theirgive themcult challenges a competitive China faces,” advantage said jun, in a China’s$20 million profit.Li Xiaolin, his ciarydaughter, in China, is the he chairwoman said, party andprivate equity firm that is on its nology in Beijing, said, “They are spouses and children, as wellhighly as Mr. regulated Pei, an authority marketplace. on China’s But exposés inchief the executive foreign leaders of China would Power essentially International, be way to raising at least $1 billion. everywhere, as long as the in- their own incomes. But the dis- A leadership.Chinese sportswear “Whenever theycompanypress —called like the the report flagship in 2010 ofcharged one of with the investigating big five power them- genMost- recently, with the Com- dustry is profitable.” Xidelong, for example, proudly informed some erating companies in China. Her brother, Li potential investors that one of its shareholders Xiaopeng, was formerly the head of another big was the son of Wen Jiabao, according to one of power company and is now a public official. the investors. (A private equity firm, New Ho- “This is one of the most difficult challenges rizon, that the son, Wen Yunsong helped found China faces,” said Mr. Pei, an authority on Chi- invested in the company in 2009, according to na’s leadership. “Whenever they want to imple- Xidelong’s Web site.) “There are so many ways ment reform, their children might say, ‘Dad, to partner with the families of those in power,” what about my business?’ ” said one finance executive who has worked with There are also growing concerns that a cul- the relatives of senior leaders. “Just make them ture of nepotism and privilege nurtured at the part of your deal; it’s perfectly legal.” top of the system has flowed downward, perme- ating bureaucracies at every level of govern- an expert on Chinese politics with the Brook- ment in China. “After a while you realize, wow, ings Institution in Washington, said it would there are actually a lot of princelings out there,” be difficult for the Chinese government to push said Victor Shih, a China scholar at Northwest- through major political reforms aimed at extri- ern University near Chicago, using the label cating powerful political families from business commonly slapped on descendants of party without giving immunity to those now in power. leaders. “You’ve got the children of current of- And with no independent judiciary in Chi- ficials, the children of previous officials, the na, he said, party leaders would essentially be children of local officials, central officials, mili- charged with investigating themselves. “The tary officers, police officials.We’re talking about party has said anticorruption efforts are a life- hundreds of thousands of people out there — all and-death issue,” Mr. Li said. “But if they want trying to use their connections to make money.” to clean house, it may be fatal.” To shore up confidence in the government’s Chinese tycoons have also been quietly wel- ability to tackle the problem, high-ranking lead- comed into the families of senior leaders, often ers regularly inveigh against greedy officials through secret partnerships in which the sons, caught with their hand in the till. In 2008, for daughters, spouses and close relatives act as instance, a former Shanghai Party secretary, middlemen or co-investors in real estate proj- Chen Liangyu, was sentenced to 18 years in ects or other deals that need government ap- prison for bribery and abuse of power. One of proval or backing, according to investors who his crimes was pressing businessmen to funnel have been involved in such transactions. benefits to his close relatives, including a land Moreover, China’s leading political fami- deal that netted his brother, Chen Liangjun, a lies, often through intermediaries, hold se- $20 million profit. cret shares in dozens of companies, including But exposés in the foreign press — like the many that are publicly listed in Hong Kong, report in 2010 that Zeng Wei, the son of China’s Shanghai and elsewhere, according to inter- former vice president Zeng Qinghong, bought a views with bankers and investment advisers. $32 million mansion in Sydney, Australia — are Lately, the progeny of the political elite have ignored by the Chinese-language news media retooled the spoils system for a new era, mov- and blocked by Internet censors. ing into high-finance ventures like private eq- Allegations of bribery and corruption uity funds, where the potential returns dwarf against the nation’s top leaders typically fol- the benefits from serving as a middleman to low — rather than precede — a fall from po- government contracts or holding an executive litical grace. Mr. Bo’s downfall this spring, for post at a state monopoly. instance, came after his former police chief in Jeffrey Zeng, the son of the former Polit- Chongqing told American diplomats that Mr. buro member Zeng Peiyan, is a managing part- Bo’s wife, Gu Kailai, had ordered the murder of ner at Kaixin Investments, a venture-capital Neil Heywood, a British businessman, in a dis- firm set up with two state-owned entities, China pute over the family’s business interests. Development Bank and Citic Capital. Liu Lefei, Evidence has surfaced of at least $160 mil- the son of another Politburo member, Liu Yun- lion in assets held by close relatives of Bo Xilai, shan, helps operate the $4.8 billion Citic Private and the authorities are investigating whether Equity Fund, one of the biggest state-managed other assets held by the family may have been funds. Last year, Alvin Jiang, the grandson of secretly and illegally moved offshore. former president Jiang Zemin, the former Com- Wen Jiabao, the prime minister, responded munist Party leader and president, helped es- by demanding a more forceful crackdown on tablish Boyu Capital, a private equity firm that corruption. Without naming Mr. Bo by name, is on its way to raising at least $1 billion. People’s Daily, the official Communist Party Most recently, with the Communist Party newspaper, denounced fortune seekers who promising to overhaul the nation’s media and stain the party’s purity by smuggling ill-gotten cultural industries, the relatives of China’s po- gains out of the country. litical elite are at the head of the crowd scram- Some scholars argue that the party is now bling for footholds in a new frontier. hostage to its own unholy alliances. Cheng Li, The February announcement of the deal between DreamWorks and three Chinese part- shown on nearly 90,000 movie screens across ners, including Shanghai Alliance Investment, the country. Government offices and schools was timed to coincide with the high-profile visit were ordered to buy tickets in bulk. The media to the United States of Xi Jinping, China’s vice was banned from criticizing it. It became one of president and presumptive next president. The last year’s top-grossing films. news release did not mention that Shanghai Al- Scholars describe the film industry as the liance is partly controlled by Jiang Zemin’s son new playground for princelings. Zhang Xiaojin, Jiang Mianheng. A person who answered the director of the Center of Political Development telephone at the Shanghai Alliance office here at Tsinghua University, said, “There are cases declined to comment. where propaganda department officials spe- Zeng Qinghuai, the brother of Zeng Qing- cifically ask their children to make films which hong, China’s former vice president, is also in they then approve.” the film business. He served as a consultant for Zhao Xiao, an economist at the University of the patriotic epic “Beginning of the Great Reviv- Science and Technology in Beijing, said, “They al.” The film exemplified the hand-in-glove rela- are everywhere, as long as the industry is prof- tionship between business and politics. It was itable.” n