Chinese authorities have launched an investigation into Liu Tianran, the son of Liu He, the former vice-premier and economic advisor to President Xi Jinping, according to sources familiar with the probe. Liu Tianran, who founded the investment firm Skycus Capital in 2016, is reportedly under investigation for suspected financial-related corruption.
Liu Tianran, a prominent “princeling” — the child of a senior Chinese Communist Party official — has been involved in the financial sector for years, with Skycus Capital attracting substantial investments from state-backed institutions such as China Development Bank, China Mobile, and Industrial Bank Co. The firm also received funding from tech giants like Tencent and JD.com, further solidifying Liu’s connections to China’s elite business landscape.
The investigation into Liu began as authorities examined his potential ties to the halted $37 billion initial public offering (IPO) of Ant Group, which was slated to become the world’s largest IPO before Beijing intervened. During this probe, unrelated corruption cases surfaced, and the findings were reportedly brought to the attention of Xi Jinping. Sources have suggested that Liu Tianran may have been under investigation for at least six months, with some claiming that he has already been detained.
The investigation is part of President Xi’s broader crackdown on China’s finance industry, where scrutiny has been increased over the fundraising and dealmaking activities of high-profile figures. This effort has seen numerous top venture investors questioned and even detained, including notable semiconductor investor Chen Datong.
Christopher Johnson, a former CIA analyst now leading China Strategies Group, noted that investigations like Liu’s fit a broader pattern in recent years. These investigations, focusing on illicit gains by associates of senior Chinese leaders, place targets in a precarious position. They may avoid formal detention if they return ill-gotten gains to the state, but the scale of Liu’s alleged wrongdoings could test the limits of this arrangement.
Dennis Wilder, former head of China analysis at the CIA, suggested that Liu He, Liu Tianran’s father, might face political problems as a result of the investigation. Liu He, who has met with international figures, including U.S. Treasury Secretary Janet Yellen, since retiring in 2023, has reportedly seen his political influence diminish. Wilder speculated that Liu He and Xi Jinping may have fallen out, leaving Liu He without the political clout to protect his son.
Corporate records indicate that Liu Tianran formally stepped down as chair of Skycus Capital in April 2017, shortly before his father’s promotion to China’s 25-member politburo. This move came in line with government regulations that bar the children of top party officials from managing businesses in sectors regulated by their parents. Despite stepping down, reports suggest that Liu Tianran continued to work on deals for Skycus and retained a stake in the company.
Skycus Capital’s operations and fundraising activities have drawn significant attention due to the involvement of state-owned entities and prominent private companies. Liu Tianran’s business dealings have raised questions about potential conflicts of interest, given his family’s powerful political connections.
While the Financial Times reached out to Liu Tianran and Skycus Capital for comment, neither responded. A person close to Liu Tianran dismissed the allegations as “not based on facts and totally untrue,” but the ongoing investigation is part of a broader pattern of increasing regulatory and legal scrutiny in China’s financial sector.
As Chinese authorities intensify their crackdown on financial corruption, Liu Tianran’s case could mark a turning point, signaling the potential for more high-profile investigations targeting the wealth and business dealings of China’s elite.
