CHINA

Chairman of Chinese Hospital Giant Detained in Graft Probe

Published: Jul. 8, 2025 2:00 p.m. GMT+8

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Lin Yanglin.

The chairman of New Journey Health Technology Group, a major Chinese private hospital operator, has been detained and placed under investigation by anti-graft authorities in Shanxi, the company said, a development that casts a shadow over the sector’s aggressive expansion.

In a stock exchange filing on Monday, Shenzhen-listed New Journey Health Technology Group Co. Ltd. (002219.SZ) said it was notified by the family of Chairman Lin Yanglin that he had been detained by the anti-graft Supervisory Committee in the Xiaodian District of Taiyuan, a city in northern China's Shanxi province.

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Lin Yanglin, chairman of New Journey Health Technology Group, was detained by Shanxi anti-graft authorities; the investigation is said to be unrelated to company affairs.
New Journey is a major private hospital operator in China, running over 40 hospitals with 30,000 beds and 22,000 employees, reporting 2024 revenue of 3.8 billion yuan.
A prior hospital acquisition by New Journey is under scrutiny, but no clear link has been established between this and Lin's detention.

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Who’s Who

New Journey Health Technology Group: New Journey Health Technology Group is a major Chinese private hospital operator listed on the Shenzhen stock exchange. It runs over 40 hospitals, employing 22,000 staff. Its rapid expansion was fueled by privatized state-owned enterprise hospitals. Its chairman, Lin Yanglin, is currently under investigation by anti-graft authorities, though the company states this is unrelated to its corporate affairs.

China Resources Medical: China Resources Medical is identified as a rival to New Journey Health Technology Group, one of China's largest private hospital operators. It is also mentioned that Xu Minggui, acting chairman of New Journey, is a former executive at state-backed conglomerates, including China Resources Power Holdings.

General Healthy: General Healthy (also known as Universal Health) is one of China's largest private hospital operators, rivaling New Journey Health Technology Group in scale. Like New Journey, it has likely benefited from the government's push to privatize hospitals formerly owned by state-owned enterprises. The article mentions it as a major player in the private healthcare sector alongside China Resources Medical.

CITIC Private Equity Funds Management Co.: CITIC Private Equity Funds Management Co. is a state-backed investment firm. In 2016, it made a strategic controlling investment in New Journey Health Technology Group Co. Ltd., a major Chinese private hospital operator. This investment provided New Journey with state-backed credentials, which helped them acquire several former state-owned enterprise (SOE) hospitals.

Shanxi Jincheng Anthracite Mining Group: Shanxi Jincheng Anthracite Mining Group (Jinmei) is a state-owned Chinese coal conglomerate. Its former chairman, Li Hongshuang, wasremoved from office in October 2024 for "improper performance of duties" related to the "irregular privatization" of Jincheng General Hospital. This hospital was sold to New Journey Health Technology Group in 2019.

China Resources Power Holdings: China Resources Power Holdings is a state-backed conglomerate. The acting chairman of New Journey Health Technology Group, Xu Minggui, is a former executive at China Resources Power Holdings.

China Resources Environmental: China Resources Environmental is a state-backed conglomerate. Its past executive, Xu Minggui, is now acting chairman of New Journey Health Technology Group while its chairman is under investigation.

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What Happened When

2014：: A policy shift began pushing SOEs in China to divest non-core assets, including hospitals.

2016：: New Journey secured a strategic controlling investment from CITIC Private Equity Funds Management Co.

2019：: New Journey acquired a 70% stake in Jincheng General Hospital from Shanxi Jincheng Anthracite Mining Group.

2019：: Lin Yanglin described the wave of hospital privatizations as a 'historic and systemic opportunity' in a Caixin interview.

By 2021：: The policy shift for SOEs to divest hospitals and other non-core assets had largely concluded.

October 2024：: Li Hongshuang, former chairman of Shanxi Jincheng Anthracite Mining Group, was expelled from the Communist Party and removed from public office, partly due to irregularities in the privatization of Jincheng General Hospital.

Fiscal Year 2024：: New Journey reported revenue of 3.8 billion yuan, a 2.95% decrease from the prior year.

March 17, 2025：: Lin Yanglin made his last WeChat post before his absence from public view.

Late-April 2025：: Lin Yanglin was absent from a board meeting, cited as due to 'personal reasons.'

Monday, July 7, 2025：: New Journey disclosed via stock exchange filing that Chairman Lin Yanglin had been detained by anti-graft authorities in Shanxi.

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