In early November 2024, Zhang Xinming, the former “richest man” in Shanxi, along with his brothers Zhang Xinyue and Zhang Xingliang, as well as their spouses, drivers, and others were arrested. Zhang Xinming had close ties with several high-ranking officials and the political circle in Shanxi. This time, they were detained on suspicion of operating illegal gambling activities, which were linked to the case of “Washing Rice Hua,” a casino boss in Macau.
According to a report by the Chinese media outlet “Economic Observer” on November 29th, from November 20th to 29th, Zhang Xinming and his brothers, along with their spouses, drivers, and others were taken away by the police for investigation and were being held in various locations in Shanxi like Jincheng and Changzhi.
It was reported that Zhang Xinming was suspected of operating illegal gambling activities. Sources revealed that Zhang Xinming had a gambling habit and enjoyed organizing mainland wealthy individuals to gamble in places like Macau. He had a deep collaboration with “Washing Rice Hua,” the owner of the Sun City casino in Macau.
“Washing Rice Hua,” also known as Zhou Zhuohua, is the owner of the Sun City Group in Macau, with businesses ranging from casinos, real estate, finance, to tourism. In November 2021, Zhou Zhuohua was arrested and sentenced to 18 years in prison in January 2023.
It was disclosed by insiders that Zhang Xinming had established close ties with Zhou Zhuohua over a decade ago, helping organize mainland wealthy individuals to gamble at Zhou Zhuohua’s casino. Zhang Xinming provided Zhou Zhuohua with around 50 million yuan in funds, believing it was for investment in the casino. About a year later, Zhou Zhuohua handed him a card with 60 million yuan, which could only be used for consumption and limited to 50,000 yuan a day.
Zhang Xinming was reported to have several identification cards with different names, birthdates, and provinces. One version close to reality indicated he was born in October 1963 in Wuermao Village, Hekou Town, Gujiao, Shanxi.
In an interview with the “New Beijing News” in May 2014, Zhang Xinming claimed to have come from a poor background, having worked various jobs such as coal mine laborer, cart puller, repairman, and construction worker.
Zhang Xinming entered the Armed Police School in 1986, served as the Director of the Inner Mongolia Forest Armed Police Corps Comprehensive Training Base in 1993, and concurrently held the position of Chairman of the Huabei Jin Industry Group, a company engaged in the third industry within the Armed Police system at that time. The Shanxi Huabei Jin Industry Group was established in May 1994, with Zhang Xinming as the legal representative.
In 1999, Zhang Xinming left the Armed Police system. Before his departure in December 1998, he founded the Shanxi Jin Industry Coal Coking Group Co., Ltd., focusing on coal mining and processing of coal products, including coking coal required for steelmaking.
The current legal representative of Jin Industry Group is Zhang Xinming’s son Zhang Wenyang, holding a 78% stake, while Zhang Xinming’s brother, Zhang Xinyue, holds a 20% stake.
In 2004, the Zhang Xinming family ranked 112th on the Rich List of China in New Fortune. In 2005, they ranked 7th with 1 billion yuan on the Hurun Energy Rich List, first in Shanxi Province.
Over the past 20 years, Zhang Xinming has been involved in multiple legal issues and controversies.
In 2010, Chinese media reported Zhang Xinming was wanted by the Henan Provincial Public Security Department for forged passports and illegal exit, offering a reward of 500 yuan. Zhang Xinming admitted in an interview with the “New Beijing News” that he had indeed obtained fake documents in 2009 because he was well-known and preferred not to use his own ID when traveling to places like Macau. He also stated that he voluntarily went to the Henan Public Security Bureau to accept punishment later on.
According to reports by “Economic Observer,” regarding the false documents, Zhang Xinming had a transaction with Qin Yuhai, the Vice Governor of Henan Province and Director of the Public Security Bureau at the time, where Zhang Xinming provided substantial benefits to Qin Yuhai. In September 2014, Qin Yuhai was arrested.
Zhang Xinming was also involved in the case of the loss of state-owned assets in the central enterprise Huarun. In 2010, Huarun Group’s Huarun Power Holding Co., Ltd. and Shanxi Huarun Liansheng Energy Investment Co., Ltd. signed a tripartite agreement with Zhang Xinming, agreeing that Huarun would purchase 80% equity of 10 assets from Jin Industry Group for no more than 7.9 billion yuan. The then Chairman of Huarun and Party Secretary Song Lin was a close associate of the Jiang faction leader, Zeng Qinghong.
In July 2013, the official Chinese media reporter Wang Wenzhi first reported to the Central Discipline Inspection Commission that Song Lin and other senior executives at Huarun Group intentionally sabotaged the multi-billion acquisition of Shanxi Jin Industry, causing the loss of hundreds of million yuan of state-owned assets.
In April 2014, Song Lin was arrested, and three years later, he was sentenced to 14 years for corruption. In May 2014, during an interview with the “New Beijing News,” Zhang Xinming claimed to be the biggest victim in this acquisition case.
Zhang Xinming had complex relationships with the political and business circles in Shanxi, known as the “Shanxi Gambling King” and the “Second Minister of the Taiyuan Organization Department.” In 2014, when the Shanxi political scene was in turmoil, Zhang Xinming was once taken away by the police. According to mainland media reports, two Standing Committee members of the Shanxi Provincial Party Committee, Chen Chuanping, and Nie Chunyu, who were investigated that year, were rumored to have been confessed by Zhang Xinming to protect himself.
Zhang Xinming had close ties with He Jintao, the son of He Guoqiang, the former Secretary of the Communist Party’s Central Commission for Discipline Inspection. The “Caijing” magazine reported that Zhang Xinming and He Jintao landed at the Wusu Airport, where Jin Daoming, the Shanxi Provincial Commission for Discipline Inspection Secretary at that time, went to greet them.
Behind Zhang Xinming, there was also a case involving buying official positions through Zhou Yongkang’s son Zhou Bin to operate the appointment of Ding Xuefeng as the Mayor of Lu Liang. On February 20, 2014, Lu Liang’s Mayor Ding Xuefeng was relieved of his positions as Deputy Secretary, Standing Committee Member, and Member of the Lu Liang Municipal Party Committee. In March, Jin Daoming, the former Secretary of the Shanxi Provincial Commission for Discipline Inspection, was investigated.
Furthermore, media sources indicated that even after being accused of debt dumping, embezzlement, illegal excavation and sale of coal, and extortion by gangsters, Zhang Xinming managed to evade capture and lead a carefree life, mainly due to the protection umbrella provided by Zhou Yongkang, the former Secretary of the Communist Party’s Politics and Law Commission. Especially concerning the case known as the “two major coal merchants’ equity dispute,” when the case was sent to the Supreme People’s Court of the Communist Party, the entire verdict was turned upside down under the intervention of Zhou Yongkang and Cao Jianming, the then Vice-President of the Supreme Court.
Retired Chinese General Liu Yazhou has been secretly sentenced to life imprisonment this year.
On March 24, 2023, the Hong Kong “Ming Pao” reported that Liu Yazhou was involved in a severe corruption case, where Zhang Xinming, the former richest man in Shanxi and former chairman of Jin Industry Group, donated millions of yuan in “political contributions” to Liu.