How a Chinese Police Chief Cashed In on a Pre-IPO Chip Venture
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A former senior police official in the eastern Chinese city of Xuzhou has been sentenced to 13.5 years in prison for corruption, including a scheme in which he acquired a stake in a semiconductor company at a deep discount ahead of its planned initial public offering.
Wang Qiaoquan, a former deputy mayor and police chief of Xuzhou, was found guilty of accepting bribes totaling more than 30.31 million yuan ($4.2 million), according to a provincial court ruling. Of that total, nearly 7 million yuan was deemed to have come from the pre-IPO stock deal, details of which were disclosed in a recently published court document.
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- Wang Qiaoquan, ex-Xuzhou deputy mayor and police chief, was sentenced to 13.5 years in prison and fined 3 million yuan for corruption.
- He accepted over 30.31 million yuan ($4.2 million) in bribes, including a discounted 1% stake in Jiangsu In-situ Chips before its IPO.
- The court upheld his conviction, citing misuse of official power for personal gain between 2011 and 2022.
- Jiangsu In-situ Chips Technology Co.Ltd
- Jiangsu In-situ Chips Technology Co.Ltd., a specialized semiconductor equipment maker, was preparing for an IPO in 2020. A former Xuzhou official, Wang Qiaoquan, used his influence to assist their business operations and IPO preparations. He acquired a 1% stake in the company for 10 million yuan, a significant discount from its 16.95 million yuan valuation, which was ruled a bribe. The IPO ultimately did not proceed.
- Between 2011 and 2022：
- Wang Qiaoquan accepted bribes in forms including cars, jade, furniture, gold bars, and cash.
- June 2020：
- Jiangsu In-situ Chips, a specialized semiconductor equipment maker, began preparations for a public listing.
- Second half of 2020：
- Wang arranged for a proxy to acquire a 1% stake in Jiangsu In-situ Chips for 10 million yuan from the company’s chairman, Fu Zhiwei.
- Between 2020 and 2022：
- Wang used his influence to assist Jiangsu In-situ Chips with its business operations and IPO preparations while serving as a top official in Xuzhou.
- December 2023：
- A Zhenjiang court delivered the initial verdict sentencing Wang Qiaoquan to 13 1/2 years in prison and a 3 million yuan fine.
- December 2024：
- The Jiangsu High People’s Court rejected Wang's appeal and upheld the original sentence.
- 2025：
- Wang stated he asked a deputy general manager of a stock exchange to visit Xuzhou to guide Jiangsu In-situ Chips' listing process.
- 2025：
- Wang and his proxy both asked for a lower price for shares in Jiangsu In-situ Chips after learning the company valuation.
- 2025：
- Wang appealed the initial verdict, which was rejected by the high court.
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