The arrest of Ye Jianming, the chairman and executive director of CEFC China Energy, a Global Fortune 500 energy and finance conglomerate, may have wide repercussions. Mr. Ye was reportedly arrested on the direct order of Chinese President Xi Jinping. Reports suggests that CEFC had been facing a cash crunch, claiming that the conglomerate was prepared to pay annual rates of as much as 36% for short-term funding.
The company said in a statement that there was a “planned change in the shareholder structure” of CEFC and that Mr. Ye would “no longer be active as a shareholder nor in the company’s leadership.”
The largest creditor is China Development Bank. The Shanghai government has taken control of CEFC.