BUSINESS

Fugitive Real Estate Tycoon Surrenders in Hong Kong After 14 Years on the Run

Published: Jul. 30, 2025 4:22 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Li Songxiao, the former chairman of Neo-China Group (Holdings) Ltd.

Li Songxiao, the former chairman of Neo-China Group (Holdings) Ltd., returned to Hong Kong Tuesday to surrender after 14 years on the run, the city’s anti-corruption agency said. The 59-year-old is expected to appear in court on Wednesday to face conspiracy-to-defraud charges dating back to 2011.

The Independent Commission Against Corruption (ICAC) said Li, together with two former senior executives of Neo-China, allegedly orchestrated fraudulent property transactions between 2003 and 2007 that inflated the developer’s profits and assets. The transactions, totaling more than HK$330 million ($42 million), misled shareholders and the Hong Kong Stock Exchange.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Li Songxiao, ex-chairman of Neo-China Group, surrendered in Hong Kong after 14 years on the run, facing conspiracy-to-defraud charges over HK$330 million in property deals from 2003–2007.
The ICAC alleges Li secretly controlled both sides of fake transactions that inflated profits and misled shareholders; a warrant was issued for his arrest in 2011.
Neo-China struggled after the 2008 crisis and was partially acquired and renamed in 2010; Li once ranked 73rd on Forbes China’s rich list.

AI generated, for reference only

Who’s Who

Neo-China Group (Holdings) Ltd.: Neo-China Group (Holdings) Ltd. was a real estate developer chaired by Li Songxiao from 2003 to 2009. The company expanded aggressively in mainland Chinese cities. Its shares were suspended from trading in 2008 due to alleged fraudulent transactions led by Li, who later fled Hong Kong. In 2010, it was acquired and renamed Shanghai Industrial Urban Development Co. Ltd.

Shanghai Industrial Urban Development Co. Ltd.: Shanghai Industrial Urban Development Co. Ltd. is the new name for Neo-China Group (Holdings) Ltd. Shanghai Industrial Holdings Ltd. acquired a 45% stake in Neo-China in June 2010 for HK$2.7 billion, leading to the name change.

Shanghai Industrial Holdings Ltd.: In June 2010, Shanghai Industrial Holdings Ltd. acquired a 45% stake in Neo-China Group (Holdings) Ltd. for HK$2.7 billion. Subsequently, Neo-China Group was renamed Shanghai Industrial Urban Development Co. Ltd. This acquisition occurred after Neo-China faced financial difficulties and its shares were suspended from trading.

AI generated, for reference only

What Happened When

2003：: Li Songxiao acquired a Hong Kong-listed firm and restructured it as Neo-China.

2003-2007：: Li Songxiao and two former Neo-China executives allegedly orchestrated fraudulent property transactions, inflating profits and assets.

2003-2009：: Li Songxiao served as chairman of Neo-China.

2006：: Neo-China raised HK$1.34 billion through zero-coupon convertible bonds.

2007：: Neo-China raised $400 million through high-yield notes.

January 2008：: ICAC raided Neo-China’s Hong Kong office and arrested one employee; Neo-China’s shares were suspended from trading.

By 2008：: Forbes China ranked Li Songxiao 73rd on its rich list with assets estimated at 6.3 billion yuan.

Early 2009：: Neo-China defaulted on interest payments as property sales slowed and cash flow dried up.

August 2009：: Li Songxiao resigned as chairman of Neo-China.

Shortly after August 2009：: Li Songxiao left Hong Kong.

June 2010：: Shanghai Industrial Holdings Ltd. acquired a 45% stake in Neo-China and renamed it Shanghai Industrial Urban Development Co. Ltd.

2011：: A magistrate issued a warrant for Li Songxiao’s arrest after he repeatedly refused to return and cooperate with the investigation.

2014：: Li Songxiao's name surfaced in a criminal case after a Xuzhou developer in a dispute with him was beaten to death; Li was released due to insufficient evidence.