Princeling under scanner: Why is China probing a former vice-premier's son?

Liu Tainran, son of former vice-premier Liu He, is being investigated by Chinese authorities over alleged financial misconduct linked to the Ant Group IPO collapse

Chinese officials have launched an investigation against Liu Tainran over alleged financial misconduct. He is the son of Liu He, a former vice-premier and economic advisor to Chinese President Xi Jinping, according to a report by the Financial Times. Tainran is the owner of investment firm Skycus Capital, which he founded in 2016. Reports suggest that Skycus attracted funds from several state-backed entities and major technology companies.

 

Who is Liu Tainran and what is the case against him? 

Liu Tainran’s case is particularly high-profile because he is the son of Liu He, one of the most senior leaders of China’s Communist Party. He founded Skycus Capital in 2016 and served as its first chair. According to the Sri Lanka Guardian, Skycus received substantial investments from state-backed institutions such as China Development Bank, China Mobile, and Industrial Bank Co. The company also secured funding from prominent tech giants including Tencent and JD.com.

 

 

The report suggests that the allegations against Tainran surfaced due to his alleged links to the halted $37 billion initial public offering (IPO) of Ant Group. The investigation into Ant Group reportedly drew the attention of Xi Jinping, prompting a probe into Tainran’s activities.

 

Ant Group, the financial technology arm of Alibaba, was set to launch the world’s largest IPO in 2020. However, the listing was abruptly blocked by Xi Jinping, citing regulatory concerns and new rules issued just days before the IPO. A report by The Wall Street Journal adds that the move was also in response to Jack Ma’s public criticism of China’s financial regulatory system, which he described as “ill-suited for modern innovations”.

 

Who is Liu He and what role did he play in the Chinese state? 

Liu He is a leading Chinese economist and politician who played a major role in managing the country’s economy. Born in 1952, he studied in China and later at Harvard. He is best known for being a close aide to President Xi Jinping. From 2018 to 2023, he served as vice-premier, helping shape China’s economic policies. He also headed China’s top economic planning body and led initiatives to reform the economy, reduce debt, and improve the efficiency of state-owned enterprises.

 

Liu He gained international recognition during the US-China trade war, leading Beijing’s delegation in negotiations with Washington. He was widely regarded as a calm and trusted figure within the leadership, often seen as balancing strong government control with practical economic reform.

 

What are princelings? 

In China, the term “princeling” refers to the sons, daughters, or close relatives of top Communist Party leaders, particularly those descended from the founding generation of revolutionaries who established the People’s Republic of China in 1949. Reports suggest that princelings often enjoy privileged access to power and wealth, securing top roles in government and business.

 

While some rise on merit, many in China view princelings as symbols of privilege, nepotism, and elite dominance within the Communist Party structure.

 

Some famous princelings 

Among the most well-known princelings is Xi Jinping himself, whose father Xi Zhongxun was a prominent revolutionary leader. Others include Bo Xilai, the son of a senior official who rose to political prominence before being jailed for corruption in a high-profile scandal. The children of Deng Xiaoping, such as Deng Nan and Deng Zhifang, also held significant positions in science, politics, and business. Hu Haifeng, son of former president Hu Jintao, has worked in both government and enterprise.

 

Among other princelings who have wielded influence in finance and the military are Chen Yuan, son of senior leader Chen Yun, who led China Development Bank and played a key role in economic reform. Ye Xuanning, whose father was a top general, was a powerful figure in the military and intelligence sectors. Wang Qishan, although not a princeling by birth, married into an influential family and became a senior political figure. Many princelings have leveraged their lineage to gain influence — some staying in the public eye, while others working behind the scenes.