Hello everyone, and welcome back to Xiaocui's Politics and Finance. Today is February 3, 2026, Eastern Time. On Lunar New Year's Eve, January 28, 2017, Xiao Jianhua, the head of Tomorrow Holdings, was arrested from Hong Kong and brought back to mainland China for trial. At this point, the public first learned of the existence of Tomorrow Holdings, this financial empire. In the past two years, I specifically produced a program discussing how Xiao Jianhua's Tomorrow Holdings, through layers of nesting, cross-shareholding, hidden transactions, controlled multiple banks, insurance companies, trust institutions, and securities companies in China, effectively moving over a trillion yuan out of China. As a result, in 2019, Baoshang Bank, under Tomorrow Holdings, directly collapsed. We all know that the "Emperor" most despises these major parasites who empty China, moving assets out while leaving debts in China. This is equivalent to directly stealing the Emperor's money. Therefore, even though Xiao Jianhua used methods like acquiring shares in the Emperor's own sister's company to gain favor with the Emperor's family, he ultimately could not escape the Emperor's iron fist. So, nine full years have passed since Xiao Jianhua's arrest. But during these nine years, the Emperor has not been idle. Now, the messy accounts of Tomorrow Holdings are finally being settled. So, in this program, let's look at how much wealth Xiao Jianhua actually moved out of China's financial system, how much the Emperor can recover, and the ultimate losses. Who were the people involved, and who was harmed by this massive bad debt? After Tomorrow Holdings collapsed, the scope of bankruptcy liquidation was ultimately determined by the court to include Tomorrow Holdings Co., Ltd. and 677 other companies. This is the largest enterprise merger and bankruptcy case since the implementation of China's bankruptcy law, bar none. Many friends may wonder why Tomorrow Holdings ended up involving so many companies. Where did these 677 companies come from? Can ordinary people manage them? To answer this question, we must first review how large Tomorrow Holdings' financial map was back then. According to incomplete statistics, at its peak, Tomorrow Holdings controlled 9 listed companies. And it had stakes in or controlled as many as 44 financial institutions. These financial institutions included city commercial banks, securities companies, trust companies, insurance companies, and fund companies. In other words, Tomorrow Holdings was a full-license financial empire spanning banking, securities, insurance, trusts, futures, funds, and asset management. According to estimates at the time, the financial assets it controlled exceeded 3 trillion yuan. You know, when you hold a complete set of financial licenses, it means you almost have a "money-printing ability." That is, you don't need to spend a penny of your own money; you can use a "money-grabbing" method to slowly wash all the money in the financial system into your own pockets. Banks can give you loans, insurance companies can use public premiums for your investments, trust management and asset management are responsible for providing channels to transfer risks, and securities companies can also help you directly raise funds from the capital market and package assets. According to information from judicial authorities, between 2010 and 2017, Tomorrow Holdings and its actual controller, Xiao Jianhua, illegally absorbed funds from the public by issuing wealth management and insurance products through institutions like New Era Trust, Tianan Property Insurance, and Tianan Financial Exchange, totaling 311.6 billion yuan. By manipulating Baoshang Bank, funds were transferred to Tomorrow Holdings for its use, and customer funds and entrusted property were arbitrarily utilized, totaling 148.6 billion yuan. By manipulating insurance institutions such as Huaxia Life, Tianan Life, and Yi'an Property Insurance, insurance funds were transferred to Tomorrow Holdings for its use, illegally operating funds of 190.9 billion yuan. The above funds were mainly used by Xiao Jianhua for acquiring financial institutions, securities trading, and overseas investments. The figures officially reported alone show that Xiao Jianhua moved at least 650 billion yuan from financial institutions. But this is just the tip of the iceberg. In fact, the risks Xiao Jianhua buried in China's financial system are at least equivalent to one Evergrande. And because Tomorrow Holdings primarily drained money from financial institutions, the damage to the Emperor might be even more severe than Evergrande. Just looking at how many shell companies Xiao Jianhua had tells you how good he was at money laundering. 677 companies – the liquidation is overwhelming. A former insider from Tomorrow Holdings recalled that during the company's peak, there were over a hundred cashiers responsible for fund transfers alone. Imagine this scene: a company supporting a hundred cashiers, all doing one thing every day: transferring money between different accounts and financial institutions. Ultimately, emptying China. So, these companies were just tools for Xiao Jianhua to hollow out China's financial system. The money is long gone, leaving only massive debt for the Emperor. No wonder the Emperor was determined to arrest Xiao Jianhua. If the money is gone, how could he let the person responsible escape? According to exclusive data disclosed by Caixin, the total assets of these 677 merged and liquidated companies are 42.807 billion yuan, with liabilities exceeding 890 billion yuan, and an asset-liability ratio of up to 2,088.03%. The net loss incurred exceeds 800 billion yuan. However, the total amount of claims declared by creditors is as high as 1.23 trillion yuan. In other words, the creditors demanding repayment from Tomorrow Holdings claimed 1.23 trillion yuan, but the court could only find assets of 42.8 billion yuan among the liquidating companies. Of this 42.8 billion yuan, only 10.68 billion yuan is in cash. This is after the liquidation administrators accumulated funds from over 3,000 bank accounts and auctioned off equity in 3 rural commercial banks to find this small amount of cash. The remaining non-cash assets with some value include equity in several financial institutions, such as 6.711% in Fude Life, 6.97% in Guangfa Bank, 9.52% in Great Wall Life, and 7.1% in Xingfu Life. These equities are estimated to be worth around 3 billion yuan. Then there are some paintings and calligraphy, mostly works by domestic artists, like Lou Zhenggang's over 80 pieces. It's unknown how much they will eventually fetch. In any case, these non-cash assets with some value have been packaged into a 5-year bankruptcy trust. Once they are liquidated, the proceeds will be distributed. Liquidating Tomorrow Holdings is indeed a monumental task. The Emperor spent a full 9 years on it. For the first three years, Tomorrow Holdings tried to survive by borrowing new to repay old debts, trying to deceive the Emperor. Finally, in 2019, regulators directly intervened and caused Baoshang Bank to go bankrupt. In 2020, regulators took over Tomorrow Holdings' other nine non-bank financial institutions, including Huaxia Life, Tianan Property Insurance, Tianan Life, Yi'an Property Insurance, New Era Trust, Xinhua Trust, New Era Securities, Guosheng Securities, and Guosheng Futures. After the major financial institutions were taken over by the Communist Party, the other affiliated enterprises entered the bankruptcy liquidation process uniformly. So, the 800 billion yuan in book losses caused by the 677 affiliated enterprises you see now are figures remaining after excluding the aforementioned 10 financial institutions. This is not the entirety of Tomorrow Holdings' debt hole. Because according to Tomorrow Holdings' own published figures at the time, the financial assets they controlled exceeded 3 trillion yuan, but now these 677 companies only have a few hundred billion yuan left. Where did the remaining over 2 trillion yuan go? It's easy to guess: there are three main destinations. The first is transfer out of the country, as this was the true purpose of Tomorrow Holdings' existence. The second destination is to become paper assets. Assets like equity and accounts receivable are heavily discounted during liquidation. The third destination is that it was burned during the process of borrowing new to repay old debts to stay afloat. To avoid a collapse, they had to shift funds from one place to another, inevitably burning a lot of money. Here, Caixin disclosed the extent of the inflation in accounts receivable for Tomorrow Holdings' 677 affiliated companies. According to book records, the total accounts receivable for these 677 companies reached 2.39 trillion yuan. However, the vast majority of this was actually internal transfer payments. Among a total of 19,200 receivable items, 11,800 were internal transfers between these 677 companies. Therefore, the actual accounts receivable were only 651.766 billion yuan. After write-offs and provision for bad debts, the finally confirmable amount was only 2.745 billion yuan. Here, bad debts accounted for over 600 billion yuan. While auditing these companies' accounts receivable, it was also unexpectedly discovered that Zhao Wei was a debtor for a 39 million yuan receivable. This immediately made Zhao Wei a target for the Emperor's debt collection. It turns out that in December 2016, Zhao Wei and a Tomorrow Holdings company, Tianjin Shenghua Jinke Co., Ltd., signed a nominee shareholding agreement, stipulating that Zhao Wei would act as a nominee to acquire and hold a 4% stake in Zhejiang Xinyi Technology Supply Chain Management Co., Ltd. Xinyi Technology is an e-commerce logistics enterprise and a key warehousing service provider for Tmall Supermarket. In 2025, it was acquired by Alibaba's Cainiao Network. In November 2019, Shenghua Jinke and Zhao Wei signed an agreement stipulating that Zhao Wei would sell the nominated shares and pay the transfer fee. Theoretically, Zhao Wei should have paid 139 million yuan, but she only paid 100 million yuan, still owing 39 million yuan. This debt, the Emperor will definitely demand from Zhao Wei. It's a clear record that cannot be escaped. Zhao Wei's ex-husband, Huang Youlong, had close ties with Xiao Jianhua. But after Xiao Jianhua was arrested in 2017, Zhao Wei and her husband vehemently denied any relationship with Xiao Jianhua. Now, their past lies have been exposed because the ledgers clearly record the money borrowed from Xiao Jianhua in various capital operations such as Zhao Wei and her husband's investment in Alibaba Pictures and the acquisition of Wanjia Culture, some of which have not been repaid. This explains why these old debts are being brought up now, sealing Zhao Wei's fate. She will never be able to recover in China. Reportedly, a few days ago, she appeared in her own winery's live-streaming room to sell products, but the live-streaming room was shut down within 10 minutes. Perhaps she was being pursued for this old debt of 39 million yuan, hence her desire to make a comeback to ease financial pressure. Okay, let's summarize. Based on the current liquidation results of Tomorrow Holdings, we found that in addition to the financial institutions already taken over by the Chinese government, Tomorrow Holdings has 677 affiliated companies. Creditors are demanding over 1 trillion yuan in debt. The finally confirmed claims are 730 billion yuan. But after a full year of effort by the liquidation team, only 42.8 billion yuan in assets were recovered. Based on these book figures alone, creditors will lose at least 700 billion yuan. And who are the creditors of Tomorrow Holdings? This is considered a core secret and will not be disclosed by officials. But we can all guess that they are mainly financial institutions. If you don't believe it, just look at who is on the board of the bankruptcy service trust. There's the Deposit Insurance Fund, CITIC Trust, Zhonghui Life, Zhongtai Securities, Huaxia Jiuying, Founder Fubon, and Tai'an Bank. The appearance of these names itself indicates that they are related parties and creditors. Among them, the Deposit Insurance Fund is there to pursue the old debts of Baoshang Bank. When Baoshang Bank went bankrupt, personal deposits up to 500,000 yuan had to be fully compensated, which caused the Deposit Insurance Fund to lose a lot of money. Naturally, they have to come to claim their debt. It's truly miraculous. Xiao Jianhua, a nobody, almost emptied China's financial system under the Emperor's nose. By the time the Emperor belatedly realized there was a problem, he already controlled 44 financial institutions and had already moved an unknown amount of assets out, leaving the Emperor with a trillion-yuan debt pit. If China's financial system collapses one day, Xiao Jianhua will undoubtedly have contributed to it. What do you all think? Okay, that's all for today's program. If you like my program, please remember to like, comment, and share. It will be very helpful to me. Thank you for watching, and we'll see you next time.

At its peak, Tomorrow Holdings controlled 9 listed companies and had stakes in or controlled as many as 44 financial institutions, including city commercial banks, securities companies, trust companies, insurance companies, and fund companies. In other words, Tomorrow Holdings was a full-license financial empire spanning banking, securities, insurance, trusts, futures, funds, and asset management. According to estimates at the time, the financial assets it controlled exceeded 3 trillion yuan. You know, when you hold a complete set of financial licenses, it means you almost have a "money-printing ability." That is, you don't need to spend a penny of your own money; you can use a "money-grabbing" method to slowly wash all the money in the financial system into your own pockets. Banks can give you loans, insurance companies can use public premiums for your investments, trust management and asset management are responsible for providing channels to transfer risks, and securities companies can also help you directly raise funds from the capital market and package assets.

According to information from judicial authorities, between 2010 and 2017, Tomorrow Holdings and its actual controller, Xiao Jianhua, illegally absorbed funds from the public by issuing wealth management and insurance products through institutions like New Era Trust, Tianan Property Insurance, and Tianan Financial Exchange, totaling 311.6 billion yuan. By manipulating Baoshang Bank, funds were transferred to Tomorrow Holdings for its use, and customer funds and entrusted property were arbitrarily utilized, totaling 148.6 billion yuan. By manipulating insurance institutions such as Huaxia Life, Tianan Life, and Yi'an Property Insurance, insurance funds were transferred to Tomorrow Holdings for its use, illegally operating funds of 190.9 billion yuan. The above funds were mainly used by Xiao Jianhua for acquiring financial institutions, securities trading, and overseas investments. The figures officially reported alone show that Xiao Jianhua moved at least 650 billion yuan from financial institutions. But this is just the tip of the iceberg. In fact, the risks Xiao Jianhua buried in China's financial system are at least equivalent to one Evergrande. And because Tomorrow Holdings primarily drained money from financial institutions, the damage to the Emperor might be even more severe than Evergrande.

After Tomorrow Holdings collapsed, the scope of bankruptcy liquidation was ultimately determined by the court to include Tomorrow Holdings Co., Ltd. and 677 other companies. This is the largest enterprise merger and bankruptcy case since the implementation of China's bankruptcy law, bar none. According to exclusive data disclosed by Caixin, the total assets of these 677 merged and liquidated companies are 42.807 billion yuan, with liabilities exceeding 890 billion yuan, and an asset-liability ratio of up to 2,088.03%. The net loss incurred exceeds 800 billion yuan. However, the total amount of claims declared by creditors is as high as 1.23 trillion yuan. In other words, the creditors demanding repayment from Tomorrow Holdings claimed 1.23 trillion yuan, but the court could only find assets of 42.8 billion yuan among the liquidating companies.

Of this 42.8 billion yuan in total assets, only 10.68 billion yuan is in cash. The remaining non-cash assets with some value include equity in several financial institutions, such as 6.711% in Fude Life, 6.97% in Guangfa Bank, 9.52% in Great Wall Life, and 7.1% in Xingfu Life. These equities are estimated to be worth around 3 billion yuan. Then there are some paintings and calligraphy, mostly works by domestic artists, like Lou Zhenggang's over 80 pieces. It's unknown how much they will eventually fetch. In any case, these non-cash assets with some value have been packaged into a 5-year bankruptcy trust. Once they are liquidated, the proceeds will be distributed.

Liquidating Tomorrow Holdings is indeed a monumental task. The Emperor spent a full 9 years on it. For the first three years, Tomorrow Holdings tried to survive by borrowing new to repay old debts, trying to deceive the Emperor. Finally, in 2019, regulators directly intervened and caused Baoshang Bank to go bankrupt. In 2020, regulators took over Tomorrow Holdings' other nine non-bank financial institutions, including Huaxia Life, Tianan Property Insurance, Tianan Life, Yi'an Property Insurance, New Era Trust, Xinhua Trust, New Era Securities, Guosheng Securities, and Guosheng Futures. After the major financial institutions were taken over by the Communist Party, the other affiliated enterprises entered the bankruptcy liquidation process uniformly. So, the 800 billion yuan in book losses caused by the 677 affiliated enterprises you see now are figures remaining after excluding the aforementioned 10 financial institutions. This is not the entirety of Tomorrow Holdings' debt hole. Because according to Tomorrow Holdings' own published figures at the time, the financial assets they controlled exceeded 3 trillion yuan, but now these 677 companies only have a few hundred billion yuan left. Where did the remaining over 2 trillion yuan go? It's easy to guess: there are three main destinations. The first is transfer out of the country, as this was the true purpose of Tomorrow Holdings' existence. The second destination is to become paper assets. Assets like equity and accounts receivable are heavily discounted during liquidation. The third destination is that it was burned during the process of borrowing new to repay old debts to stay afloat. To avoid a collapse, they had to shift funds from one place to another, inevitably burning a lot of money.

Here, Caixin disclosed the extent of the inflation in accounts receivable for Tomorrow Holdings' 677 affiliated companies. According to book records, the total accounts receivable for these 677 companies reached 2.39 trillion yuan. However, the vast majority of this was actually internal transfer payments. Among a total of 19,200 receivable items, 11,800 were internal transfers between these 677 companies. Therefore, the actual accounts receivable were only 651.766 billion yuan. After write-offs and provision for bad debts, the finally confirmable amount was only 2.745 billion yuan. Here, bad debts accounted for over 600 billion yuan. While auditing these companies' accounts receivable, it was also unexpectedly discovered that Zhao Wei was a debtor for a 39 million yuan receivable. This immediately made Zhao Wei a target for the Emperor's debt collection. It turns out that in December 2016, Zhao Wei and a Tomorrow Holdings company, Tianjin Shenghua Jinke Co., Ltd., signed a nominee shareholding agreement, stipulating that Zhao Wei would act as a nominee to acquire and hold a 4% stake in Zhejiang Xinyi Technology Supply Chain Management Co., Ltd. Xinyi Technology is an e-commerce logistics enterprise and a key warehousing service provider for Tmall Supermarket. In 2025, it was acquired by Alibaba's Cainiao Network. In November 2019, Shenghua Jinke and Zhao Wei signed an agreement stipulating that Zhao Wei would sell the nominated shares and pay the transfer fee. Theoretically, Zhao Wei should have paid 139 million yuan, but she only paid 100 million yuan, still owing 39 million yuan. This debt, the Emperor will definitely demand from Zhao Wei. It's a clear record that cannot be escaped. Zhao Wei's ex-husband, Huang Youlong, had close ties with Xiao Jianhua. But after Xiao Jianhua was arrested in 2017, Zhao Wei and her husband vehemently denied any relationship with Xiao Jianhua. Now, their past lies have been exposed because the ledgers clearly record the money borrowed from Xiao Jianhua in various capital operations such as Zhao Wei and her husband's investment in Alibaba Pictures and the acquisition of Wanjia Culture, some of which have not been repaid. This explains why these old debts are being brought up now, sealing Zhao Wei's fate. She will never be able to recover in China. Reportedly, a few days ago, she appeared in her own winery's live-streaming room to sell products, but the live-streaming room was shut down within 10 minutes. Perhaps she was being pursued for this old debt of 39 million yuan, hence her desire to make a comeback to ease financial pressure.

Okay, let's summarize. Based on the current liquidation results of Tomorrow Holdings, we found that in addition to the financial institutions already taken over by the Chinese government, Tomorrow Holdings has 677 affiliated companies. Creditors are demanding over 1 trillion yuan in debt. The finally confirmed claims are 730 billion yuan. But after a full year of effort by the liquidation team, only 42.8 billion yuan in assets were recovered. Based on these book figures alone, creditors will lose at least 700 billion yuan. And who are the creditors of Tomorrow Holdings? This is considered a core secret and will not be disclosed by officials. But we can all guess that they are mainly financial institutions. If you don't believe it, just look at who is on the board of the bankruptcy service trust. There's the Deposit Insurance Fund, CITIC Trust, Zhonghui Life, Zhongtai Securities, Huaxia Jiuying, Founder Fubon, and Tai'an Bank. The appearance of these names itself indicates that they are related parties and creditors. Among them, the Deposit Insurance Fund is there to pursue the old debts of Baoshang Bank. When Baoshang Bank went bankrupt, personal deposits up to 500,000 yuan had to be fully compensated, which caused the Deposit Insurance Fund to lose a lot of money. Naturally, they have to come to claim their debt. It's truly miraculous. Xiao Jianhua, a nobody, almost emptied China's financial system under the Emperor's nose. By the time the Emperor belatedly realized there was a problem, he already controlled 44 financial institutions and had already moved an unknown amount of assets out, leaving the Emperor with a trillion-yuan debt pit. If China's financial system collapses one day, Xiao Jianhua will undoubtedly have contributed to it. What do you all think? Okay, that's all for today's program. If you like my program, please remember to like, comment, and share. It will be very helpful to me. Thank you for watching, and we'll see you next time.