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Authorities in China are looking into Liu Tianran, the financier son of Liu He, a former vice-premier and close associate of Xi Jinping, who was involved in trade negotiations during the initial Trump administration, according to sources familiar with the investigation.
Seven individuals informed that Liu Tianran, whose father held a crucial economic position in China, is currently under investigation. Two sources indicated that the inquiry pertains to allegations of financial corruption.
Liu Tianran, one of the several “princelings” — children of high-ranking party officials — established an investment firm, Skycus Capital, in 2016 and assumed the role of its first chairman. The Financial Times has previously confirmed his identity as the son of Liu He.
A former colleague of Liu Tianran mentioned he had been “under investigation for a while” and suggested he “might have lost his freedom,” implying possible arrest. Another source claimed he has already been detained, while two others noted that the investigation has been ongoing for at least six months.
One individual stated that the investigation shifted towards potential corruption after authorities initially examined Liu Tianran in relation to a planned $37bn initial public offering for Ant Group — which was expected to be the largest IPO globally before it was halted by Beijing.
During the course of the investigation, authorities uncovered separate cases of corruption, with claims referred to Xi, the President of China.
This scrutiny occurs amidst Xi’s broader crackdown on the Chinese finance sector, which has included reduced salaries for bankers and increased examination of fundraising and deals involving various top funds. Multiple prominent Chinese venture investors have also faced questioning, and some have been detained regarding their fundraising efforts, including notable semiconductor investor Chen Datong.
“If the allegations hold true, Liu’s situation aligns with a new investigative approach sanctioned by Xi in recent years,” commented Christopher Johnson, a former CIA analyst on China who now leads the China Strategies Group, a risk consultancy.
“These investigations target illicit gains by associates of senior Chinese leaders, placing those involved in a precarious middle ground between being cleared and arrested,” he elaborated. “Typically, these officials can evade capture by returning ill-gotten assets to the state; however, the magnitude of Liu’s alleged misconduct may challenge this arrangement.”
Dennis Wilder, previous head of CIA’s China analysis, indicated that the investigation implies Liu He could be facing challenges. After retiring in 2023, Liu engaged with foreign leaders, including former Treasury Secretary Janet Yellen in April 2024, but has seen a significant reduction in meetings over the past year.
“Liu has been under strict observation,” said a source familiar with the circumstances, noting that some who were aware of the investigation into his son suspected that his lower profile related to it.
Wilder added that Liu seems to have estranged himself from Xi, a childhood friend.
“Given Liu He’s political issues and limited access to Xi Jinping, he may no longer wield sufficient influence to protect his son,” observed Wilder, a Georgetown University professor and former senior White House Asia official.
The FT was unable to obtain comments from Liu Tianran, but an individual close to him dismissed the allegations put forth by the FT as “not based on facts and completely false.” Liu He and Skycus did not respond to a request for comments.
Corporate filings reviewed by the FT indicated that Liu Tianran officially resigned from his role as chair at Skycus in April 2017, six months prior to his father’s promotion to the Chinese Communist Party’s 25-member Politburo.
Liu He subsequently became vice-premier and was tasked with overseeing the financial sector. Chinese regulations prohibit the children of senior officials from managing companies in regulated sectors.
In 2021, individuals close to Skycus’s activities informed the FT that Liu Tianran — who also goes by the English name Andy — had continued to engage in the firm’s affairs after stepping down as chair and relinquishing his shares.
Business records indicate that Skycus secured funding from various state entities, including the leading policy lender, China Development Bank, telecom giant China Mobile, and Industrial Bank Co.
Aside from attracting investments from technology leaders like Tencent and JD.com, Skycus also directed capital into their spun-off divisions.
Liu Tianran started his professional journey as a journalist at the Economic Observer, a well-known Chinese business magazine. He later served at CCB International, a branch of a prominent state bank, before joining a Shanghai government-supported fund. He launched Skycus — or Tianyi Ziteng asset management in Chinese — in 2016.
