In the fast-paced world of China’s tech and finance sectors, another high-profile executive has seemingly vanished without a trace. Chen Shaojie, the CEO of DouYu, a popular Chinese live-streaming service backed by Tencent, has become the latest individual to fall mysteriously silent in the midst of China’s relentless anti-corruption crackdown. As rumors swirl and concerns mount, the question on everyone’s mind is, “Where is Chen Shaojie?”
Chen’s sudden disappearance was brought to the public’s attention by a Monday report from Cover News, a state-owned media outlet in China. The report not only highlighted Chen’s unavailability but also cited unconfirmed reports suggesting that he was being investigated and had been missing for nearly three weeks. The reasons behind the investigation and the identities of the authorities involved remain shrouded in secrecy.
DouYu, often likened to Amazon’s Twitch, provides a platform for interactive live-streams of video games, enabling users to chat in real-time and explore a variety of content created exclusively for the platform. With its 2019 Nasdaq listing, during which it raised a substantial $775 million, DouYu emerged as one of the most significant share offerings by a Chinese company on Wall Street that year. However, Chen’s absence is now casting a cloud of uncertainty over the company’s future.
Chen Shaojie’s last public appearance was in August, during the company’s quarterly earnings conference call with financial analysts. Since then, his unexplained silence has raised concerns among investors and the industry alike, with many wondering about the implications for DouYu’s business and future prospects.
The context of Chen’s disappearance cannot be separated from China’s ongoing anti-corruption crackdown, which has targeted high-ranking executives in both the financial and tech sectors. The Central Commission for Discipline Inspection, China’s top anti-corruption watchdog, recently announced its investigation of Zhang Hongli, a former senior executive at Industrial and Commercial Bank of China (ICBC), one of China’s “Big Four” banks. Zhang is suspected of “seriously violating rules and laws,” a common euphemism for corruption allegations.
Bao Fan, a prominent investment banker and tech dealmaker, also found himself ensnared in the anti-graft agency’s investigations. Chinese state media reported in May that Bao had been in the custody of the anti-graft agency since his mysterious disappearance in February. This wave of investigations has already seen over a dozen senior executives from China’s most significant financial institutions come under scrutiny, according to statements posted on the CCDI’s website.
The anti-corruption campaign has not spared other industries, as seen in the case of Xu Jiayin, once one of China’s wealthiest individuals and the chairman of embattled Chinese developer Evergrande Group. In September, a company filing to the Hong Kong stock exchange revealed that Xu had been taken away by the police due to “mandatory measures in accordance with the law due to suspicion of … crimes.” These “mandatory measures” can encompass detention and formal arrest under the Chinese legal system.
In the midst of this sweeping anti-corruption campaign, Chen Shaojie’s mysterious disappearance adds another layer of uncertainty to China’s business landscape. As the investigation unfolds, the future of DouYu and its CEO remains unclear, leaving both investors and industry observers anxiously awaiting further developments in this enigmatic case.
(Source: Diksha Madhok | CNN | Qianer Liu | Ryan McMorrow | Financial Times)
