Midea Denies Founder’s Alleged Hostage Takers Were Disgruntled Suppliers
Zhang Yushuo
DATE:  Jun 16 2020
/ SOURCE:  Yicai
Midea Denies Founder’s Alleged Hostage Takers Were Disgruntled Suppliers Midea Denies Founder’s Alleged Hostage Takers Were Disgruntled Suppliers

(Yicai Global) June 16 -- Midea Group has denied rumors that the five intruders who allegedly held billionaire founder He Xiangjian hostage in his own home were a crew of suppliers angry at their treatment by China’s most valuable home appliances maker.

The claims are libelous and Midea will to take legal action against whoever started the rumor, Guangdong province-based firm said on Weibo today.

The suspects, who also supposedly held He’s family captive, were suppliers seeking long-overdue payments, according to a screenshot of a conversation on WeChat that went viral yesterday. Midea often mistreats its suppliers and He’s son, He Jiangfeng, runs a financial company that makes money by lending to them at excessive rates when they run into cash-flow problems, per the conversation in the image.

Midea’s shares [SHE:000333] closed up 1.7 percent at CNY59 (USD8.34) each today after falling by nearly 5 percent yesterday.

Police in the southern Chinese city of Foshan detained five suspects for breaking into He’s home on June 14 and are still investigating the incident, local authorities said.

He is the controller of Midea Group’s parent company Midea Holding and the largest shareholder in Midea Group, with a 31.7 percent stake. His son oversees the company’s real estate business.

Editor: James Boynton

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Keywords:   Media Group,supplier,household appliance