Revolving-Door Scrutiny Deepens as Ex-Regulator Falls Out of Contact

1. A former top Chinese financial regulator, Ke Kasheng, who later became an executive at Fantasia Holdings Group Co.—a troubled property developer—has been unreachable for over a month. His disappearance comes amid a sweeping anti-corruption probe in Shenzhen’s real estate finance sector, causing significant unease among industry stakeholders. Ke left Fantasia in May 2024, having transitioned from public service to the private sector after decades in senior financial regulatory roles, including president of China Huarong Asset Management [para. 1][para. 2].

2. The timing of Ke’s disappearance coincides with that of Lang Bo, a former vice president at Zhongrong International Trust, who has also been unreachable for weeks. Attempts to contact both individuals through various means have been unsuccessful. According to insiders, Ke’s absence may be connected to financing activities for property developers in the Chaoshan region of Guangdong, a locale recognized for its intricate and influential business networks. It is suggested that after joining the corporate world, Ke may have leveraged his previous regulatory influence to assist others in obtaining financing, ultimately drawing scrutiny from authorities [para. 3][para. 4][para. 5].

3. Ke’s career path is emblematic of recent anti-corruption investigations targeting figures who have moved between major financial institutions and real estate companies. Notably, others have faced similar scrutiny or legal action, such as Huang Xi of Tahoe Group (sentenced to 14 years in prison) and Tong Wentao, who transitioned from China Construction Bank to developer roles. Ke’s long regulatory career began after his graduation in 1984, ultimately seeing him serve pivotal roles in the People’s Bank of China and then the newly created China Banking Regulatory Commission, where he led efforts to stabilize and regulate the trust industry [para. 6][para. 7][para. 8][para. 9].

4. As a financial regulator, Ke earned a reputation for professionalism and integrity, keeping a low profile and describing himself as “an ordinary practitioner” during a transformative period in Chinese finance. His involvement in cleaning up risky small and midsize financial institutions and instituting new standards for non-bank entities marked him as a significant, if understated, figure in the sector’s reform era [para. 10][para. 11].

5. In 2012, Ke was named president and executive director of China Huarong Asset Management as it prepared for a restructuring and eventual stock market listing. Under Ke, the company expanded beyond bad-loan management to become a diversified financial group, listing in Hong Kong in 2015. Ke’s time at Huarong overlapped with Lai Xiaomin, the chairman later executed for corruption; sources noted that Ke resisted questionable initiatives and left the firm in 2017 amid increasing internal turmoil and surveillance, officially citing health concerns but effectively avoiding the subsequent purge following Lai’s downfall [para. 12][para. 13].

6. After convalescing, Ke joined Fantasia in 2019, overseeing the company’s aggressive expansion and later attempting debt restructuring as the developer’s financial predicament worsened. Fantasia defaulted on a $206 million dollar bond in October 2021, becoming a notable early casualty in China’s broader property sector debt crisis. Ke led restructuring efforts amid rapidly growing liabilities—by late 2022, Fantasia had $4.2 billion in offshore debt and nearly 40 billion yuan in onshore debt. Efforts to restructure these debts have persisted, with several onshore bonds extended through the end of 2026 [para. 14][para. 15][para. 16][para. 17].

7. Ke’s recent disappearance—and its possible links to high-stakes real estate financing—illustrates the intensifying anti-corruption push targeting the intersection of finance and property development in China, as the sector continues to endure a prolonged downturn [para. 3][para. 18].