Market Overview

UNITE HERE: Letter to China Securities Regulator Warns about Shen Wen, Zijiang Group


IPO Disclosures and Relationship with Jiang Mianheng Questioned

UNITE HERE, the North American hotel workers' union, has sent a
to the China Securities Regulatory Commission to bring
attention to activities undertaken by Shanghai Zijiang Group
(上海紫江(集团)有限公司) and two companies connected to its chairman Shen Wen. The
letter raises questions about their relationship with Jiang Mianheng,
son of Jiang Zemin.

"In the course of examining Marriott's portfolio of hotels in China, we
learned that Shen Wen's Zijiang Group owned the Shanghai Marriott Hotel
Hongqiao," said UNITE HERE Deputy Director Jeff Nelson. "Our findings
raised questions that touched on the integrity of China's public stock
markets. Consequently, we felt it was our duty to outline our concerns
to the China Securities Regulatory Commission."

According to UNITE HERE's findings, two companies partially owned by
Zijiang Group – Zijiang Enterprise and Well Tech – omitted from their
IPO filings the fact that relationships between key shareholders in the
companies effectively gave Shen Wen influence over a majority of the
companies' shares after the offerings. Despite a statement from Zijiang
Enterprise that large shareholders had no relationship, this was called
into question by publicly available shareholder information. Directors
with the same names as directors of the major shareholders in Zijiang
Enterprise served concurrently on the board of a Bermuda corporation.

"In addition to the concerns about the IPOs, we discovered that a
Zijiang Group company sold a significant stake in Well Tech to another
company, Shanghai Zizhu, at a price below market value. Because Shanghai
Zizhu was founded by Jiang Mianheng, son of Jiang Zemin, we had
questions about the transaction," said Jeff Nelson.

The letter, which is hosted for the public on a union website, Marriott
China Observer (,
was also sent to the Central Commission for Disciplinary Inspection and
the Embassy of the People's Republic of China in the United States.


UNITE HERE represents 270,000 members working in the hotel, gaming, food
service, manufacturing, textile, distribution, laundry, transportation,
and airport industries in the U.S. and Canada including 17,000 employed
by Marriott International. is maintained by
the UNITE HERE Research Department.

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