Tuesday, August 19, 2014

There's something about China Poly Group

The Aquis flying circus landed in town at the weekend with an investor roadshow covered in traditional enthusiastic fashion by Nick Dalton at the Cairns Post: Hong Kong tycoon encouraged by interest in Aquis resort plan

There was one potential investor particularly noted:
They included China Poly Group Corporation president Zhang Zhengao – on his first visit to Cairns – who has had a business relationship with Mr Fung for 20 years
Poly Group specialises in international trading and real estate and is ranked 63rd in the top 500 Chinese companies. Its assets total more than $67 billion.
China Poly Group is a large State Owned Enterprise (SOE) with historical links to the People's Liberation Army (PLA). Poly was founded and directly controlled by the PLA until 1999 when it was formally handed over to the central authority. It's reported to retain close links to the PLA.

It does indeed specialise in international trading and real estate. However the international trading component would appear to be mainly military arms which has attracted some controversy: China's Poly Group: The most important company you've never heard of
Picture the China Poly Group Corporation as the first of a set of Russian nesting dolls. Each of the larger wooden baubles represents a new line of diverse subsidiaries that shield its cloistered, princeling-controlled core.
It does sound like an interesting company ideal as an investor in Australia's largest casino:
On any given day, observers say, Poly might ship arms to Zimbabwe or Sudan, announce plans to build a highway from Iraq to Syria or win China distribution rights for Ferrari or Maserati. The next day, it might hold a public offering on the Nasdaq for a movie distributor, win a lengthy exclusive fishing rights deal for Mauritius’ economic waters, be accused of bribing a former Namibian defense minister or get linked to missile sales to Iran or Saudi Arabia.
But, until recently, it was mainly known for Poly Technologies, China’s biggest arms exporter.
The arms trading activities have attracted the interest of Amnesty International for human rights issues and also arms trading violation sanctions from the USA as recently as last year:
On 11 Feb 2013, the US Department of State imposed sanctions Poly Technologies, saying that the company had violated the Iran, North Korea, and Syria Nonproliferation Act (INKSNA). Poly Technologies denied exporting weapons or technology to nations or regions under UN Security Council Resolution sanctions.[9]
With the usual opacity around the Aquis structure and funding 'Fung-o' indicated in the CP report that investors may be tied to specific components of the project but was vague about the gaming licence. So it isn't clear how any potential investors maybe linked to the gaming licence itself where the applicant is Fung as the sole shareholder. Presumably any further investors in the licence if approved would also require probity clearance. SOE reform has been on the agenda in China recently.

Anyway, our local members managed to share a Chinese feed during the visit where Trouty informs us Mr Zhang "asked pertinent questions about the political stability in Queensland and Australia."
Source: Gavin King via Facebook

I hope nobody took home any brown paper doggy bags!

Update: The past associations of Tony Fung and China Poly Group have included business deals such as this previous post here at Loose Change:  Tony Fung: Past business deals and the BVI. You can also visit the ICIJ offshore leaks database to explore the extensive British Virgin Islands corporate network around Zhang Zhen Gao.

1 comment:

  1. This is China Poly Group! Beware Cairns, you are being bought out by a powerful Chines State Controlled company with string military links.