(Yicai) Aug. 8 -- Yao Zhenhua, the actual controller of Chinese real estate and financial services conglomerate Baoneng Group, deserves praise and encouragement for still being actively involved in corporate affairs at a time when private businesses are under intense pressure, according to China Vanke founder Wang Shi.

The property tycoon defended Yao in a video clip posted to his Weibo social media account late yesterday, after his erstwhile rival was accosted at the end of last month by employees demanding overdue salaries be paid.

Labor disputes have arisen as businesses run into difficulties amid the economic downturn, Wang said. But while the actions taken by some staff (chasing and beating Yao, for example) are understandable, they are ill-advised, he added. Wang said such problems need to be tackled through legal means.

Yao fell and his spectacles were knocked off when he was chased and surrounded by angry employees, a video clip circulating online shows.

Baoneng issued a statement on Aug. 3 saying the group had taken legal action to ensure the safety of all its staff and noted that most of its business units were on track with salary payments and some with delays were doing their best to solve them.

Shenzhen-based Baoneng made a failed hostile takeover bid for property developer Vanke in 2015. At the time, Wang made clear that he did not want Yao to become its biggest shareholder and even called him “a barbarian.”

Editor: Peter Thomas