Exclusive: HNA Co-Founder Jailed as Curtain Falls on Debt-Fueled Empire
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Chen Feng
A Chinese court has sentenced Chen Feng, the 72-year-old co-founder and former chairman of HNA Group Co., to 12 years in prison, drawing the curtain on one of China’s most turbulent corporate sagas.
Chen, once the figurehead of a company that aggressively pursued global acquisitions, was found guilty of embezzlement, breach of trust, and fraudulent procurement of loans. The verdict, handed down in a first-instance trial, includes fines totaling 221 million yuan ($31 million) and the confiscation of 40 million yuan in personal assets, people familiar with the matter told Caixin. His prison term will run until late 2033, following his detention in September 2021.
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- Chen Feng, former HNA Group chairman, was sentenced to 12 years in prison for embezzlement and fraud, fined 221 million yuan, with 40 million yuan assets confiscated.
- HNA Group collapsed under 1.1 trillion yuan liabilities after rapid global expansion and Beijing’s crackdown on leveraged investments, leading to bankruptcy restructuring in 2021.
- Additional former executives received 3.5-year sentences; audits found unreported related-party transactions involving Chen and co-founder Wang’s relatives.
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Who’s Who
- HNA Group Co.
- HNA Group Co. was a Chinese conglomerate founded in 1989 that grew from a regional airline into a global empire. It aggressively pursued overseas acquisitions, accumulating over $50 billion in assets including stakes in Deutsche Bank and Hilton. However, HNA collapsed under massive debt due to aggressive borrowing and a 2017 Beijing crackdown on highly leveraged overseas investments. Its co-founder and former chairman, Chen Feng, was sentenced to 12 years in prison for embezzlement and other charges.
- Deutsche Bank AG
- HNA Group Co., once a global conglomerate, held stakes in Deutsche Bank AG. HNA's aggressive borrowing for overseas acquisitions, including its stake in Deutsche Bank, led to its collapse under massive debt.
- Hilton Worldwide Holdings Inc.
- Hilton Worldwide Holdings Inc. was one of the companies in which HNA Group Co. held a stake. HNA, a Chinese conglomerate, aggressively pursued global acquisitions, investing over $50 billion in overseas assets, including landmark hotels like those under Hilton. This acquisition strategy contributed to HNA's growth into a global empire.
- Hainan Airlines Holding Co.
- Hainan Airlines Holding Co. was the flagship carrier of HNA Group, formerly a global conglomerate. Its former leader, Bao Qifan, received a 3.5-year sentence for breach of trust. After HNA's collapse and bankruptcy restructuring, the airline business was acquired by Liaoning Fangda Group Industrial Co. Ltd.
- Anbang Insurance Group
- Anbang Insurance Group was one of several Chinese conglomerates, including HNA, Fosun Group, and Dalian Wanda Group, that faced a crackdown from Beijing in mid-2017 due to their highly leveraged overseas investments. This government intervention effectively cut off their access to foreign funding.
- Fosun Group
- Fosun Group was identified as one of several conglomerates, including HNA, Anbang Insurance Group, and Dalian Wanda Group, that engaged in highly leveraged overseas investments. From mid-2017, Beijing cracked down on such activities.
- Dalian Wanda Group
- Dalian Wanda Group was a Chinese conglomerate that, like HNA, engaged in aggressive overseas investments. In mid-2017, Beijing cracked down on highly leveraged overseas investments by such conglomerates. This government action impacted Dalian Wanda Group alongside other major Chinese firms.
- Liaoning Fangda Group Industrial Co. Ltd.
- Liaoning Fangda Group Industrial Co. Ltd. is mentioned as a new investor that acquired the airline business of HNA Group Co. Ltd. during HNA's court-led bankruptcy restructuring in 2021. This occurred after HNA collapsed under a massive debt load.
- Hainan Development Holdings Co. Ltd.
- Hainan Development Holdings Co. Ltd. is a state-owned enterprise. In 2021, it acquired the airport operations of HNA Group Co. Ltd. as part of HNA's court-led bankruptcy restructuring. This came after HNA, founded in Hainan province, collapsed under significant debt.
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What Happened When
- 1989：
- HNA Group Co. was founded in Hainan province.
- Early 2000s：
- Firms tied to Chen and Wang’s relatives began securing contracts from HNA.
- At its peak in 2017：
- HNA had assets of 1.23 trillion yuan and debt of 740 billion yuan, and ranked No. 78 on the Fortune Global 500.
- Mid-2017：
- Beijing cracked down on highly leveraged overseas investments by conglomerates including HNA.
- December 2017：
- China’s top economic planning authority imposed stricter oversight of outbound investments, cutting off HNA’s access to foreign funding.
- 2018：
- Wang Jian, HNA’s co-founder, died in an accident in France.
- 2020：
- HNA was placed under a provincial government-led working group after a failed 2.5-year effort to stabilize its finances.
- 2021：
- A court-led bankruptcy restructuring of HNA began.
- September 2021：
- Chen Feng was detained.
- April 2022：
- The bankruptcy restructuring involving HNA Group and its subsidiaries concluded.
- 2025：
- Chen Feng was sentenced to 12 years in prison and fined 221 million yuan, with 40 million yuan in personal assets confiscated.
- 2025：
- Sun Mingyu and Bao Qifan, two other former executives, were each sentenced to 3.5 years for breach of trust.
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