A divorce case in China that has lasted 15 years has finally reached a judgment, ordering alimony of 536 million yuan (US$75 million), sparking significant attention on social media.
The husband, Zhao Bingxian, 63, is often referred to as China’s Warren Buffett due to his remarkable record in financial investments.
In early November, the Beijing No 3 Intermediate People’s Court issued a verdict during the second hearing of the divorce case between Zhao and his wife, Lu Juan. The ruling mandates that the couple evenly split the shares of Beijing Zhongzheng Wanrong Investment Group.
This final ruling dictates that Zhao must provide Lu with about 536 million yuan, calculated based on the value of their jointly held shares, as reported by the National Business Daily.
The outcome of the case was disclosed online by Shenzhen-listed Shandong Wohua Pharmaceutical Company on November 4, as Zhongzheng Wanrong is its parent company and Zhao is the chairman of Wohua Pharmaceutical.
Zhao graduated with a master’s degree in finance from the prestigious Shanghai Jiao Tong University in the 1980s. He met Lu while serving in the People’s Liberation Army in 1986, and they married two years later.
Lu, a native of Shanghai, comes from a family with investment roots, as her grandfather had invested in the stock market even before the founding of the People’s Republic of China in 1949.
Thanks to her grandfather’s guidance, the couple began trading shares in the early 1990s, striking gold in their initial ventures.
They subsequently founded Zhongzheng Wanrong, with Lu managing its finances while Zhao oversaw capital operations.
This investment firm has facilitated the listing of numerous mainland companies on the stock exchanges in Hong Kong, Shanghai, and Shenzhen.
In 1997, Zhao published a groundbreaking book on capital operations, one of the first of its kind in China, which became a top 10 bestseller that year.
Since then, domestic media have dubbed Zhao China’s Buffett, a title he has maintained for over a decade.
The couple have two children, a son and a daughter.
In April 2010, Lu filed for divorce, citing multiple instances of domestic violence by Zhao. She sought an equitable division of their shared property.
At that time, Zhao owned 80 per cent of Zhongzheng Wanrong’s shares, while Lu held the remaining portion.
“After I expressed my desire to divorce, he threatened that the divorce would cause a significant drop in share prices, affecting him and his associates,” Lu recounted to the Beijing Morning Post.
To delay the legal proceedings, Zhao repeatedly failed to appear in court, citing illness or business commitments as excuses.
This situation escalated when Lu removed a steel safe containing company assets, prompting Zhao to call the police and accuse her of theft.
As a result, Lu was held in custody for 37 days before being released due to insufficient evidence.
She initially withdrew her divorce application but filed again in August 2011.
The first hearing of the case took place in June 2023 at the Tongzhou District People’s Court in Beijing. The rationale for re-examining the case after so many years remains unclear.
During the proceedings, Lu alleged that Zhao had forged a share transaction document in 2010 without her consent. The court ruled this document invalid.
The verdict from this court stipulated that the couple should equally share their common property. Zhao subsequently filed an appeal.
Recently, the Beijing No 3 Intermediate People’s Court held a second hearing and upheld the original verdict.
Zhao’s roles at both Zhongzheng Wanrong and Wohua Pharmaceutical remain unaffected by the court’s decision.
Reportedly, Zhao’s office, corridors, and meeting rooms are adorned with pictures and quotes from Warren Buffett, alongside photographs of himself with the investment mogul.
Zhao has stated that his company, Zhongzheng Wanrong, operates in accordance with the principles exemplified by Buffett’s Berkshire Hathaway Inc.
Meanwhile, Lu has largely kept a low profile over the years, with limited personal information and photographs available online, as discovered by the Post. -- SOUTH CHINA MORNING POST
