Jiang Mianheng, son of former president Jiang Zemin, has been accused of carrying out the "Nanjing Massacre" of Chinese finance. (File photo/CNS)
Jiang Mianheng, son of former Chinese president Jiang Zemin and co-founder of China Netcom, was stripped of his position as vice president of the Chinese Academy of Sciences last November after being found to have been involved in a series of major corruption scandals. All of the scandals involved bribery and the embezzlement of public funds reaching astronomical sums and drawing anger from the public.
Jiang is believed to have been responsible for the Shanghai bidding scandal, manipulating a 1.2-billion yuan (US$160.6 billion) deal from behind the scenes. In October 2007, the share price of the stock in question plummeted from 4.949 yuan (US$0.78) per share to 0.002 yuan (US$0.0003), causing more than 500,000 investors to go bankrupt and inducing direct losses of over 50 billion yuan (US$7.9 billion).
Chinese investors have referred to the incident as the "Nanjing Massacre" of finance, filing letters of complaint on the internet and asking for fraud investigations to be carried out by the Shanghai stock exchange. But reports on the incident were removed from the web, said some insiders, as they touched the nerves of several senior officials.
Before the case, Jiang received a doctorate from Drexel University in Philadelphia, and worked at Hewlett-Packard in California from 1991-1993. He is also one of the head researchers for the Chinese space program.
But in 2007, he failed to win nomination as a delegate to the Communist Party's 17th National Congress. He was vice president of the Chinese Academy of Sciences from 1993 until being removed from the position in November 2011. Currently, Jiang heads China's project to develop a liquid fluoride thorium reactor.
It has been reported that China Netcom, a telecom provider co-founded by Jiang, is the largest asset controlled by a Chinese "princeling" — the children of powerful party officials — at net worth of 166.6 million yuan (US$26.4 million). Jiang also serves as chairman of Shanghai Alliance Investment, a company that has invested in Shanghai Automotive Industry, Shanghai Airport Group, Phoenix Satellite TV and other firms.
Jiang Mianheng 江綿恆
Jiang Zemin 江澤民
China Network Communications Corporation 中國網通