Hong Kong’s Independent Commission Against Corruption (ICAC) formally charged Zhang Yadong, former chairman of Greentown China (03900.HK), on October 9, accusing him of conspiring to accept HK$20 million (approximately $2.5 million) in bribes during his tenure to facilitate the company’s acquisition of a Dalian property project. The case was mentioned at Eastern Magistrates’ Courts the same day.
Zhang, 58, faces one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. The charge alleges that between January 2020 and March 2023, the defendant conspired with an intermediary, a shareholder of a Dalian property developer, and the defendant’s son, among others, to accept HK$20 million in bribes from that shareholder, causing Greentown China to acquire the developer’s equity for CNY 440 million (approximately $65.8 million).
The ICAC investigation found that the shareholder in question had been pitching a Dalian property project to Greentown China since 2019. Zhang allegedly solicited bribes from the shareholder through the intermediary, facilitating Greentown’s purchase of the project. The bribe payments were allegedly deposited in multiple installments into bank accounts held by Zhang’s son through the intermediary.
Zhang Yadong has deep roots in Dalian. Public records show that although he is a native of Shandong province, he spent most of his career in Dalian, having studied at Liaoning University, Dalian Institute of Light Industry, and Xiamen University, where he earned a doctorate. Before joining Greentown, he worked for years in Dalian’s urban construction bureaucracy, becoming deputy mayor of Dalian in 2013 with oversight of urban development, land and housing, planning, and city management. He was later promoted to member of the Dalian Municipal Party Committee Standing Committee and head of the United Front Work Department, giving him intimate familiarity with local land and industrial resources.
In the second half of 2016, Zhang left Dalian’s local government and transitioned to a platform under China Communications Construction Group (CCCC), completing his shift from public office to the corporate sector. In May 2018, he joined Greentown China as a representative of the major shareholder, serving as party secretary and executive president; in August of the same year, he was appointed executive director. In July 2019, he succeeded Greentown founder Song Weiping as chairman of the board, becoming the central figure in Greentown’s “CCCC era.”
After Zhang took full control, Greentown’s land acquisition strategy shifted markedly toward aggression, with scale expansion becoming the core objective. Company publications show that Greentown’s land investment in 2019 totaled approximately CNY 85.6 billion (approximately $12.8 billion), including 39 parcels acquired through public auction and 40 parcels through non-public channels, a year-on-year increase of 135%. According to annual reports, the company continued to accelerate in 2020, adding 85 new projects with a total saleable value of CNY 328.8 billion (approximately $49.2 billion); in 2021, it expanded further, adding 101 new projects.
In March 2025, Zhang submitted his resignation. Days later, Greentown China announced that he was stepping down as chairman and executive director due to work arrangements, with CCCC’s Liu Chengyun taking over as chairman. The departure was widely viewed as abrupt and unusual. Two months later, media reported that Zhang had been intercepted at Hong Kong International Airport and barred from leaving the territory.
On June 17, 2026, Greentown China disclosed that the ICAC had executed a search warrant at the company’s principal place of business in Hong Kong, and that the action related to corruption allegations involving an independent individual who had previously served as a director of the company but was no longer a group employee at the time. The news initially drew market attention to several departed executives; the mystery has now been resolved.
After Zhang’s departure, Greentown launched large-scale asset impairments for two consecutive years. In its 2024 annual report released at the end of March 2025, the company booked a one-time impairment of CNY 4.917 billion (approximately $735.9 million), a year-on-year surge of 141.6%, far exceeding the CNY 2.035 billion (approximately $304.5 million) recorded in 2023. Management said at the earnings briefing that the impairments came almost entirely from projects acquired in 2021 or earlier, including inventory impairments of CNY 3.925 billion (approximately $587.4 million), with the remainder from receivables related to joint ventures and associates. In 2025, the company booked another CNY 4.921 billion (approximately $736.5 million), nearly matching the 2024 figure. Over three years, Greentown’s cumulative impairments reached CNY 11.873 billion (approximately $1.8 billion).
Note: 2019 figure represents land investment; other years represent saleable value. Impairment data sourced from company annual reports.
As a mainland Chinese developer listed in Hong Kong, Greentown China’s former chairman facing bribery charges has prompted renewed scrutiny of the company’s corporate governance. The project quality risks accumulated during Zhang’s aggressive expansion era were exposed through two consecutive years of massive impairments after his departure, with cumulative write-downs exceeding CNY 11.8 billion (approximately $1.8 billion) placing significant pressure on shareholder equity and profitability.
The ICAC’s action extends its recent enforcement efforts targeting cross-border corruption by executives of mainland Chinese companies listed in Hong Kong. The fund flows involved in the case — bribes funneled through an intermediary into the defendant’s son’s bank accounts — also highlight the complexity of cross-border capital monitoring. The progress of subsequent proceedings, and whether Greentown China will face further legal or regulatory consequences, will remain key areas of market focus.
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