Former Boss of Shanghai’s State-owned Conglomerate Tried for Embezzlement and Bribery

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A court in Shanghai heard the case against Zhou Jun

Zhou Jun, the former president of the state-owned investment conglomerate Shanghai Industrial Investment (Holdings) Co. Ltd., appeared in court on Wednesday to face charges of embezzlement and bribery totaling 176 million yuan ($24.5 million), Caixin learned.

A court in Shanghai heard the case against Zhou, who is accused of embezzling more than 154 million yuan in public funds during his tenure as president of Shanghai Industrial Investment from 2019 to 2023.

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Zhou Jun, former president of Shanghai Industrial Investment (Holdings) Co. Ltd., faced charges of embezzlement and bribery totaling 176 million yuan ($24.5 million).
The charges include embezzling 154 million yuan in public funds (2019-2023) and accepting 21.5 million yuan in bribes (2006-2023).
Zhou was placed under investigation in November 2023, expelled from public office in March, influencing ongoing deals and investigations.

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Who’s Who

Shanghai Industrial Investment (Holdings) Co. Ltd.: Shanghai Industrial Investment (Holdings) Co. Ltd., founded in July 1981 in Hong Kong, is the investment platform for the Shanghai municipal government. The conglomerate operates across infrastructure, property, and pharmaceuticals sectors. It controls numerous listed companies and comprises 1,000 member companies with over 60,000 employees. Zhou Jun's presidency saw major mergers and investments, but also led to his downfall due to charges of embezzlement and bribery.

Shanghai Xinghe Digital Investment Co. Ltd.: Shanghai Xinghe Digital Investment Co. Ltd. is a subsidiary of the state-owned conglomerate Shanghai Industrial Investment (Holdings) Co. Ltd. Zhou Jun, former president of Shanghai Industrial Investment, was accused of accepting bribes while serving as a senior executive at Shanghai Xinghe Digital Investment Co. Ltd., among other subsidiaries.

Shanghai Industrial Holdings Ltd.: Shanghai Industrial Holdings Ltd. is a subsidiary of Shanghai Industrial Investment (Holdings) Co. Ltd. It is involved in infrastructure, property, and other sectors. Zhou Jun, the former president of Shanghai Industrial Investment, is accused of embezzling public funds and accepting bribes during his tenure at this and other related entities. The company is part of a larger conglomerate with numerous listed subsidiaries and extensive business operations.

SIIC Environment Holdings Ltd.: SIIC Environment Holdings Ltd. is a subsidiary of the state-owned conglomerate Shanghai Industrial Investment (Holdings) Co. Ltd. Zhou Jun, the former president, was charged with accepting 21.5 million yuan in bribes while serving as a senior executive there. The company operates under Shanghai Industrial Investment, which manages various businesses spanning infrastructure, property, and pharmaceuticals.

Shanghai Pharmaceuticals Holding Co. Ltd.: Shanghai Pharmaceuticals Holding Co. Ltd. is a drug distribution unit listed both in Shanghai and Hong Kong. Zhou Jun became the legal representative and chairman of the company in October 2016, a month after being named president of Shanghai Industrial Investment. The company was involved in various deals and mergers under Zhou’s tenure, including becoming the majority shareholder of Tianjin Pharmaceutical Holdings Co. Ltd. following a 2020 investment.

Tianjin Pharmaceutical Da Ren Tang Group Corp. Ltd.: Tianjin Pharmaceutical Da Ren Tang Group Corp. Ltd. had 33,112 shares frozen by Shanghai graft busters in January, amid an investigation into former Shanghai Industrial Investment president Zhou Jun. The controlling shareholder, Tianjin Pharmaceutical Holdings Co. Ltd. (Tianjin Parma), became majority-owned by Shanghai Industrial Investment following a 2020 investment led by Zhou.

Tianjin Pharmaceutical Holdings Co. Ltd.: Tianjin Pharmaceutical Holdings Co. Ltd. (Tianjin Pharma) is the controlling shareholder of Tianjin Pharmaceutical Da Ren Tang Group Corp. Ltd. In January, 33,112 of its shares were frozen by Shanghai graft investigators due to Zhou Jun's involvement. Shanghai Industrial Investment became the majority shareholder of Tianjin Pharma following a 2020 investment led by Zhou.Contact reporter Han Wei (weihan@caixin.com)

Shanghai Industrial Financial Leasing Co. Ltd: Shanghai Industrial Financial Leasing Co. Ltd. is the financial leasing unit of Shanghai Industrial Investment (Holdings) Co. Ltd. Its controlling shareholder, Lin Zhen, was taken into custody in June 2023 as part of an investigation into Dong Yunhu, former head of the Shanghai legislature. Lin was released in December 2023 and claimed that Zhou Jun's support had previously benefited the company's business, although their relations soured since 2022.

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What Happened When

September 2016：: Zhou Jun was named president of Shanghai Industrial Investment.

October 2016：: Zhou Jun became legal representative and chairman of Shanghai Pharmaceuticals.

By 2020：: Shanghai Industrial Investment, under Zhou's leadership, became the majority shareholder of Tianjin Parma.

June 2023：: Lin Zhen, chairman of Shanghai Industrial Financial Leasing Co. Ltd., was taken into custody as part of the investigation into Dong Yunhu.

November 2023：: Zhou Jun was placed under investigation by China’s top anti-graft agency.

December 2023：: Lin Zhen was freed.

December 2023：: Gao Yiyi, governor of Shanghai’s Baoshan district, was placed under investigation for corruption.

January 2024：: Tianjin Pharmaceutical Da Ren Tang Group Corp. Ltd. said its shares held by Tianjin Parma were frozen by graft busters in Shanghai.

March 2024：: Zhou Jun was expelled from public office and the Communist Party.

June 2024：: Authorities in Shanghai stopped Shanghai Industrial Investment’s project to build a campus for the Shanghai University Fine Arts College in Baoshan district.

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