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Hongtashan

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 1999

    Corruption case of former Hongta Group chairman Chu Shijian

    Chu Shijian, former director of Yuxi Cigarette Factory (Hongta Group), built Hongtashan into a top Chinese cigarette brand; in the 1990s Hongta Group's profits and taxes ranked among the highest in the country. In January 1999, the Yunnan Provincial Higher People's Court found that Chu Shijian, together with Luo Yijun and Qiao Fake, divided off-book public funds of USD 3.551061 million (about RMB 28.7 million), constituting embezzlement, and also found that he had a huge amount of property with unidentified sources; he was sentenced to life imprisonment, while Luo Yijun and Qiao Fake received 14 years and 5 years respectively. Chu Shijian later had his sentence reduced and was released in 2011 after completing his term; in later life he started a business again with "Chu Orange"; the case sparked long-term discussion about incentive mechanisms for SOE entrepreneurs.

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