Guan Jun donated 29% of HNA Group of China to a private foundation based in New York. These shares represent an equivalent of over $18 billion. It remains unclear how Jun, living in relative modesty, came to own such a large portion of one of China’s largest conglomerates. The ownership structure behind HNA is somewhat opaque, which creates problems for potential American investment companies subject to know-your-customer-rules. Bank of America recently abstained from doing any business with the Chinese conglomerate, citing issues with its murky shareholder structure and noting probable connections within the Chinese government.
The large transfer also elicits concerns with taxes and the possibility that HNA is using the donation as a means to avoid certain tax liabilities at home and abroad.
See Michael Forsythe & Alexandra Stevenson, Behind an $18 Billion Donation to a New York Charity, a Shadowy Chinese Conglomerate, The New York Times, July 26, 2017.
