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Hu Xingrong, the principal owner of a Chinese investment firm known as the largest shareholder of a textile manufacturing company, has been subjected to mandatory measures by authorities in China. The company announced yesterday that Hu is under “compulsory measures” based on information received from a Wenzhou-based enterprise.
The company did not specify the reasons behind this action, but such measures generally fall into two categories: criminal and administrative. Criminal measures include summonses, bail pending trial, residential surveillance, detention, and arrest. Administrative measures involve restrictions on personal freedom, sealing of property, confiscation of assets, and freezing bank accounts or remittances.
Authorities responsible for investigations include courts, prosecutors, public security agencies, tax authorities, and customs officials. This move follows rumors that Hu, 45 years old and a recent addition to the Hurun Global Rich List with an estimated net worth of 13 billion yuan (about 1.9 billion USD) in 2024, has not been seen in public lately.
It is important to note that Hu has never held a formal position at the company and does not participate in its daily operations or strategic decisions. The company stated that its board and management continue to operate normally, with no disruption to production or business activities.
Shares of the company closed 2.7% higher at 1.55 yuan (roughly 23 cents USD) today, even as the overall Shenzhen market declined by 1.9%. Since the end of last year, the company’s stock price has fallen by approximately 65%.
As of the end of the first quarter, the investment firm owned nearly 16% of the textile company. Hu has full ownership of his investment firm and is also the founder of a large private enterprise ranked among China’s top 500 companies. This enterprise, which ranked 143rd on the Fortune China 500 list in 2024, reported annual revenues of 218.9 billion yuan (about 32.2 billion USD) and total assets valued at 143.3 billion yuan. It employs over 10,000 workers and operates across sectors such as smart manufacturing, urban development, trade, aviation, renewable energy, and cultural tourism real estate.
Hu has largely remained out of the public eye since his last appearance in October 2025. Meanwhile, his private enterprise is reportedly experiencing liquidity challenges.
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