News Analysis
According to an analysis published by Japan’s Nikkei Asia, Xi Jinping’s removal of Ma Xingrui appeared intended to contain a scandal reaching into his inner circle and reinforce his political control. The report said Evergrande founder Hui Ka Yan, also known as Xu Jiayin, may be a central link in the case.
Ma Xingrui is among the highest-ranking Chinese Communist Party officials to be targeted in Xi Jinping’s anti-corruption campaign. His case is especially significant because he served not only as a provincial-level leader, but also as a member of the CCP Politburo, the party’s 24-member decision-making body, and was a prominent figure in China’s aerospace establishment.
A July 16 investigation by mainland Chinese financial outlet Caixin alleged that the Ma Xingrui case centers on a secretive network of political and business ties involving little-known property developer Wang Zhanjiang and the so-called Huasheng Group (桦盛系). The report also examined apparent links between the network and members of Ma Xingrui’s family. Subsequent reports citing the investigation described those alleged family connections as among the strongest evidence supporting accusations of economic misconduct against Ma.
Analysis: Xi Jinping removed Ma Xingrui to consolidate power
On July 14, 2026, according to a report by Xinhua News Agency, the Chinese Communist Party expelled Ma Xingrui, 66, a member of the CCP Politburo and former Party Secretary of Xinjiang, from the Party and dismissed him from public office. His case was transferred to judicial authorities for investigation and prosecution.
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Recently, Katsuji Nakazawa, Senior Editor and Editorial Writer at the Nikkei, wrote that Ma Xingrui had been a member of Xi Jinping’s inner circle, and that Shenzhen—the center of Ma’s alleged scandal—is also a stronghold of the Xi family’s political influence. Nakazawa argues that Xi’s decision to remove Ma was intended to strengthen his grip on power, but also meant sacrificing one of his own protégés—an outcome he likened to “killing 800 enemies at the cost of losing 1,000 of one’s own troops,” implying that the move carried a substantial political price for Xi himself.
Nakazawa further argued that Ma’s downfall as part of Xi’s anti-corruption campaign suggests that the authorities regard the allegations against him as particularly serious.
The Japanese editor noted that Shenzhen has long been regarded as the political and economic stronghold of Xi Jinping and his family. Xi’s late father, Xi Zhongxun, formerly a Vice Premier of the State Council and First Secretary of Guangdong Province, settled in Shenzhen with Xi’s mother after retiring in 1993. Meanwhile, the principal business activities of Xi Jinping’s elder sister and brother-in-law have also reportedly been centered in Shenzhen.
As a result, he argues that anyone seeking to become a senior official in Shenzhen would need not only Xi Jinping’s trust but also the confidence of the Xi family.
Shenzhen property crisis brings Ma Xingrui’s downfall
The turning point came in the early 2020s, when China’s real estate bubble burst. Shenzhen’s two major property developers—Evergrande and Vanke—both fell into severe financial distress, setting the stage for Ma Xingrui’s political downfall.
In its official notice announcing Ma’s expulsion from the Chinese Communist Party and dismissal from public office, the CCP alleged that Ma used his authority to help family members purchase large numbers of properties at below-market prices and that he, his relatives, and his subordinates exploited his official position to obtain enormous financial benefits.
The exposure of the Ma Xingrui scandal dealt a heavy blow to Xi Jinping’s leadership. It contends that had China’s property bubble not collapsed, the alleged illegal activities of Evergrande founder Xu Jiayin (Hui Ka Yan) might never have come to light, and Ma Xingrui’s alleged misconduct could have remained concealed. Even if Party disciplinary authorities had suspected wrongdoing, they would have been reluctant to investigate because of the Xi family’s perceived backing of Ma.
Xu Jiayin may be the crucial link connecting the Ma Xingrui case. It points to several notable developments starting with July 2025 when Ma Xingrui was removed as Party Secretary of Xinjiang.
In August 2025, Evergrande was officially delisted from the Hong Kong Stock Exchange and on April 3, 2026, Chinese authorities announced an investigation into Ma Xingrui. On April 13–14, 2026, Xu Jiayin made his first appearance before the Shenzhen Intermediate People’s Court, where he reportedly pleaded guilty to multiple charges, including illegally accepting public deposits and fraudulent fundraising.
The timing of these events is unlikely to be coincidental. It also notes that the APEC Summit in Shenzhen is scheduled for Nov. 18–19, 2026. According to the analysis, one possible reason Xi’s leadership moved against Ma Xingrui was to contain the scandal before the Shenzhen APEC summit.
Another concern, it argues, may have been the possibility that the investigation could implicate additional senior CCP officials. If more members of the Politburo or even the Politburo Standing Committee were drawn into the real estate scandal, it would deal an even more severe political blow to the Chinese leadership.
Independent political commentator Du Zheng previously wrote in the Taiwanese news outlet Up Media that, according to sources within official circles in Guangzhou, the roots of Ma Xingrui’s problems lie in Guangdong Province.
Du said that a story widely circulated at official banquets in the region claims that after Evergrande founder Xu Jiayin was placed under detention in September 2023, he provided Chinese authorities with a long list of senior officials, including Ma Xingrui.
On Nov. 4, 2015, Ma Xingrui, then Deputy Party Secretary of Guangdong Province and Party Secretary of Shenzhen, met with Xu Jiayin. With Ma’s support, Evergrande quietly relocated its headquarters from Guangzhou to Shenzhen over the following year. Xu, in return, allegedly funneled substantial benefits to his political patron, Ma Xingrui.
Ma Xingrui family corruption case allegedly uncovers a secret political-business network
Chinese authorities officially announced the investigation into Ma Xingrui on April 3, 2026.
On July 16, 2026, the mainland Chinese media outlet Caixin published an article titled, “A Preliminary Investigation into the Ma Xingrui Family Corruption Case: The Political-Business Network Behind Urban Redevelopment Projects.” The report stated that around May 2026, Hu Donghai, former Party Secretary and Chairman of CITIC Real Estate Co., Ltd. (CITIC Zhidi), the real estate arm of the state-owned CITIC Group, was suddenly taken away for investigation by authorities in southern China.
According to the report, Hu is suspected of using CITIC Real Estate’s status as a central state-owned enterprise to acquire valuable property development projects, resell them for enormous profits, and then share those profits with a “mysterious figure.” The alleged transactions reportedly involved at least RMB 1 billion ($147.7 million USD) each.
The timeline of Hu Donghai’s alleged misconduct overlaps with the years Ma Xingrui served in Guangdong Province. It further claims that behind Hu stood the elusive Shenzhen real estate developer Wang Zhanjiang and his business network, known as the “Huasheng Group” (桦盛系). This network formed part of a hidden political-business alliance that also allegedly involved members of Ma Xingrui’s family.
These connections are the most significant evidence substantiating allegations of Ma Xingrui’s economic corruption.
The elusive developer Wang Zhanjiang and the ‘Huasheng Group’
Ma Xingrui served in several senior positions in Guangdong: He was the Deputy Party Secretary of Guangdong Province and Secretary of the Provincial Political and Legal Affairs Commission in November 2013; Party Secretary of Shenzhen from March 2015 – December 2016 and Governor of Guangdong Province from Jan. 23, 2017 – December 2021.
In September 2013, CITIC Group established CITIC Real Estate, appointing Hu Donghai as its Party Secretary and Chairman. The report says Hu maintained close ties with Wang Zhanjiang.
Around 2016, Wang founded Shenzhen Huasheng Investment Co., Ltd. which secured dozens of urban redevelopment projects in Shenzhen, largely because of its close partnership with CITIC Real Estate. This relationship was an open secret within Shenzhen’s urban redevelopment industry.
At its peak, the Huasheng Group reportedly consisted of more than 40 affiliated companies, although over ten have since been de-registered.
When dealing with business partners—particularly in matters requiring interaction with Chinese government authorities—the Huasheng Group frequently invoked CITIC Real Estate’s name, explaining that “operating under the banner of a central state-owned enterprise makes things much more convenient.”
Wang Zhanjiang has maintained an exceptionally low public profile. He has rarely appeared in public, seldom attended industry events, and few people in the real estate sector have had direct dealings with him. As a result, his political and business connections have remained largely hidden from public view.
In September 2016, the Huasheng Group and CITIC Real Estate jointly established Shenzhen Xinghuo Xinteng Real Estate Co., Ltd. In April 2017, Hu Donghai became the company’s chairman, while CITIC Real Estate appeared on paper as its largest shareholder.
China’s real estate crisis and the collapse of the Huasheng network
China’s real estate sector entered a crisis beginning in 2021. In July 2024, CITIC Real Estate put its 40 percent stake in Shenzhen Xinghuo Xinteng Real Estate Co., Ltd. up for sale, but reportedly failed to find any interested buyers. At the end of December 2025, the Shenzhen Intermediate People’s Court ruled that Huasheng Investment had entered bankruptcy proceedings.
In October 2017, Wang Zhanjiang established Shenzhen Qianhai Zhongsheng Investment Partnership. Its registered address was the same as that of Shenzhen Qianhai Zhifu Financial Holdings Group. The chairman of Qianhai Zhifu Financial Holdings Group was Ma Shaofu.
Ma Shaofu had repeatedly donated money and supplies to Shuangyashan, Heilongjiang Province, together with Ma Xingquan, chairman of Beijing Zhanying Xingye Information Technology Co., Ltd. Ma Xingquan is reportedly the younger brother of Ma Xingrui.
The ‘Huasheng Group’ and its billion-yuan transactions with Evergrande
It was not until the disclosure of its transactions with Evergrande that Wang Zhanjiang and the “Huasheng Group” attracted widespread public attention.
According to a Shenzhen property industry source cited in a July 16 investigation by mainland financial outlet Caixin, the Huasheng Group often paid more than prevailing market valuations to acquire projects in Shenzhen. Most of those projects have yet to enter the market, while a small number were later resold to major developers, reportedly generating substantial profits.
The Huasheng Group once transferred two Shenzhen urban redevelopment projects to Evergrande, with the total transaction value reaching tens of billions of yuan. One of these transactions took place in May 2017.
According to Caixin, the list of financing partners associated with the Huasheng Group also included Zhuhai state-owned capital entities.
Later, the party that applied to the court for the bankruptcy liquidation of Huasheng Investment was its creditor—Zhuhai Hansheng Technology Co., Ltd. Its second-largest shareholder was Zhuhai Liansheng Asset Management Co., Ltd., a wholly owned subsidiary of Zhuhai Aviation City Group, a state-owned enterprise under Zhuhai’s state assets system.
In 2020, Zhuhai Aviation City Group invested in a key supplier of Evergrande. After Evergrande fell into a financial crisis, that investment reportedly suffered significant losses.
In March 2026, Guo Yonghang, former Party Secretary of Zhuhai, was investigated. Guo had served as secretary-general to Ma Xingrui when Ma was Party Secretary of Shenzhen.
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