Hillhouse Capital Denies that Founder Zhang Lei Faces Border Control Penalty

Hillhouse Capital on Monday denied previous reports that its founder Zhang Lei now faces punishment by border control authorities. The venture capital firm has reported the case to the police and reserved all legal prosecution rights.

A person close to the matter said that the cost of spreading such rumors is too low.

According to a receipt of the case in the report, Beijing police have accepted a libel case on behalf of Zhang Lei.

Zhang Lei founded Hillhouse Capital in 2005, which has since invested in a range of successful firms including JD.com, Tencent, Bytedance, Meituan, Zoom, CATL, Gree and more. Entities specializing in hard and cutting-edge technology account for more than 80% of Hillhouse’s overall investment layout.

Since 2020, Zhang Lei’s books, speeches and exclusive interviews have often appeared in the public’s field of vision. In the secondary market, the projects that Hillhouse Capital participated in were wildly sought after by institutions and investors, and the stock price of most projects rose sharply on the first day of their IPO.

Recently, the education industry in China suffered a setback from regulators. However, Hillhouse Capital liquidated its investment in TAL Education and Yiqi Education as early as the first quarter of 2021, causing Zhang Lei to once again became a hot topic.

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