On November 20, Xi'an businessman Hu Xufeng publicly submitted another real-name complaint to Shaanxi provincial authorities and relevant departments regarding the Xi'an Market Supervision Administration. This marks not Hu's first formal accusation against the regulator.
Two years prior, on November 10, 2023, Hu had denounced the administration and its director Hao Shengwang through his self-media platform "Xi'an Positive Energy."
The latest complaint reiterates allegations of power abuse and refusal to enforce court rulings by the administration, which Hu claims has not only harmed businesses but also obstructed the restart of a stalled residential project affecting over 2,000 households.
The renewed complaint stems from recent obstacles in corporate equity changes. On November 15, 2025, at the Xi'an Government Service Center, authorized representatives of Shaanxi Hongrun Real Estate Development Co., Ltd. (Hongrun Real Estate) presented two crucial documents: an effective civil judgment from Xi'an Intermediate People's Court and an interim shareholders' resolution. However, their application was halted by the Market Supervision Administration citing "civil litigation initiated by interested parties."
This November 17 notice has reignited the public confrontation between Hu, the actual controller of Hongrun Real Estate, and Director Hao. The twelve-year legal battle revolves around equity retrieval through "security transfer," with administrative discretion becoming the key variable in this corporate control dispute.
The conflict originated in 2012 when Hu's Shaanxi Hongrun Industrial Group secured Xi'an's first urban village redevelopment project, "International Happiness City." Facing funding shortages, Hu entered a ¥12 million loan agreement with investor Wang Jian, transferring 75% of Hongrun Real Estate's equity as collateral. When repayment default occurred, Wang claimed full ownership, while Hu accused him of loan fraud.
After years of litigation, Xi'an Intermediate Court's September 26, 2025 final ruling confirmed the equity's security nature, declaring the 75% stake belonged to Hongrun Industrial Group. Despite this, the Market Supervision Administration continues blocking corporate registration changes, citing pending litigation from Wang.
Hu's faction, controlling 82% voting rights, held a November 13 shareholders' meeting resolving key corporate changes. However, their November 15 registration attempt failed due to missing company seals controlled by Wang. While authorities accepted their materials, the November 17 suspension notice cited Wang's new lawsuit.
Hu's camp argues this constitutes administrative overreach, noting Wang's creditor status grants no rights to challenge shareholders' resolutions. They highlight the administration's 2023 approval of Wang's registration changes despite knowing his disputed ownership claims.
The dispute traces back to allegedly falsified 2012 equity transfer documents, including forged signatures. Though courts acknowledged registration flaws, they maintained the changes' validity. Now with final judgment, Hu questions why the administration still obstructs lawful procedures.
The standoff impacts 2,042 homeowners awaiting completion of the stalled project. Hu pledges ¥500 million for immediate restart upon registration clearance, promising delivery within a year. Homeowners, exhausted by twelve-year delays, plead for government intervention.
Legal experts emphasize that absent court-ordered injunctions, the administration lacks grounds to suspend registration per effective judgments. The case tests Xi'an's business environment and administrative compliance, with implications for property rights protection and unfinished project resolutions nationwide.
As Hu prepares administrative reconsideration or lawsuits, the outcome will determine whether legal clarity prevails over bureaucratic discretion, finally delivering justice to long-suffering homeowners.
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