Controlling shareholder
The controlling shareholder of CEFC was Shanghai Energy Fund Investment Ltd (SEFI), which was registered under Ye Jianming, the chairman of CEFC.[1] Fortune described Ye as "China’s Newest Oil Baron" in its 40 Under 40 of 2016 while noting his close connections to the Chinese government.[7][8]
In the autumn of 2015, Hunter Biden became acquainted with Ye. Ye and Biden worked together for about 18 months, with Biden providing his legal and financial experience to help CEFC establish joint ventures in the United States, such as Hudson West; Biden received fees in the amount of approximately $5 million for his services to CEFC.[9] Biden also worked with CEFC on foreign deals, e.g. State Energy HK in Hong Kong.[10]
In January 2017, Czech President Miloš Zeman appointed Ye as his economic adviser, however, CEFC's many investments in the Czech Republic in the past years were soon noticed by Czech media and led to speculation about whether CEFC was operated at arm's length by the Chinese government.[7][11][12] Reuters reported that CEFC had a rare contract to store part of China's strategic oil reserve and "hired a number of former top officials from state-owned energy companies according to CEFC officials... It also [had] layers of Communist Party committees across its subsidiaries – more than at many private Chinese companies."[11]
In March 2018, Ye was detained in China for questioning on suspicion of economic crimes.[13][14] Reuters and South China Morning Post reported that, a portfolio and investment entity that is a Shanghai municipal government agency, had taken control of CEFC China Energy.[15][16] On March 2, 2018, CEFC announced that Ye had stepped down as chairman and that state-controlled CITIC Group had acquired 49% of CEFC Shanghai, a subsidiary of CEFC China Energy. (CEFC Shanghai owned CEFC Europe.)[16][17] In April 2018, CEFC laid off 15,000 employees, who had not been paid for two months.[18]
