Since January 20th, a news that Wang Dong, a prisoner in Nehe Prison in Heilongjiang Province, used mobile phone WeChat to defraud many women and coerce a woman to have sex in prison has aroused public concern. Yesterday (22nd), Zhou Chao, a reporter from The Paper, reported in detail the whole story of Wang Dong’s fraud in prison. This 28-year-old young man has been imprisoned three times in the ten years since he served his sentence for robbery in 2005, and each time he was charged with different crimes. In the process of "cheating in prison", many prisoners often gather around to make suggestions, and even a short message sent to the victim was actually written by a prison guard.

After the news of Wang Dong’s "cheating in prison" was exposed by the media, his Nehe prison also received attention. According to The Paper, during the six years from 2008 to 2014, at least five inmates committed suicide, three attempted suicides and one prison guard committed suicide after being summoned. Yesterday, the Heilongjiang Provincial Prison Administration announced the case of Wang, a prisoner in Nehe Prison, who was suspected of extortion.

Wang Dong, a prisoner in Nehe Prison, Heilongjiang Province. (The Paper)

Wang Dong, a criminal of "cheating in prison": After 85 years of three visits to the palace, the prison guard helped him compile short messages.

Prison seems to be no stranger to Wang Dong, a 28-year-old from Lindian County, Heilongjiang Province. Since he served his sentence for robbery in 2005, he has been imprisoned three times in ten years, each time on different charges.

After arriving in Nehe prison in December 2012, he looked more comfortable. In prison, he can get contraband at will without labor. All this is backed by money.

His money comes from the lovers he met outside the prison through WeChat, and he has maintained a lover relationship with at least seven women. The Heilongjiang Provincial Prison Administration announced that Wang Dong defrauded two women of more than 110,000 yuan on the grounds of partnership.

According to the information learned by the reporter, the highest amount of fraud is 80,000 yuan.

Inside and outside the prison, Wang Dong has formed a huge network of contacts, including prisoners, prison guards, relatives, lovers and even business vendors outside the prison. They helped Wang Dong pass contraband and even help him commit fraud.

An insider close to Wang Dong told reporters that Wang Dong chats with his lovers on WeChat, and there are often many prisoners around to make suggestions. Even a short message sent to the victim was actually written by a prison guard.

Wang Dong Prequel: Robbery, Fraud and Kidnapping

When chatting with netizens, Wang Dong’s WeChat name was "Man’s Domineering". This "post-85 s" with only junior high school education has enough "domineering" youth.

On September 7th, 2005, Wang Dong was sentenced to two years’ imprisonment by ranghulu district People’s Court of Daqing City for robbery. On the day of sentencing, he was 58 days short of turning 18.

Four years later, on August 11th, 2009, he was sentenced to one year and six months’ imprisonment and fined 3000 yuan by the People’s Court of Lindian County, Heilongjiang Province.

Three years later, on September 25th, 2012, he was sentenced to six years’ imprisonment and fined 20,000 yuan by the People’s Court of Daqing High-tech Industrial Development Zone for kidnapping.

Three times in prison, and three times on different charges. If the commutation factor is not considered, he will be imprisoned again for up to two years at a time.

In November 2014, when the prison fraud case was committed, his sentence was still three years and three months.

His former home, the Sixth Committee of East Street of Lindian Town, Lindian County, Heilongjiang Province, has rarely been familiar with him. A neighbor in his front and back yard told The Paper that Wang Dong’s father had passed away long ago, and later his mother remarried and moved out of the village, and the house was sold. Wang Dong in her memory, as a child, didn’t leave a deep impression on her.

Wang Dong’s second sister Wang Fang has two shops in Lindian County. A victim of Wang Dong’s fraud case told The Paper that Wang Dong asked her to transfer the money to Wang Fang first, and then Wang Fang handed it over to Wang Dong.

On January 22, the victim asked Wang Fang for money. Wang Fang said that she had received the money, but all of it had been transferred to Wang Dong. The case had nothing to do with her. Wang Fang said that the victim voluntarily lent money to Wang Dong, which was not fraud, and said that he was not afraid of investigation by the public security organs.

Life in prison: lovers bring in 855 yuan kebabs at a time.

On December 7, 2012, Wang Dong came to Nehe Prison. An insider in the prison said that at first, Wang Dong did not take part in labor on the grounds that his leg was disabled. It was not until more than a year later that he put down the crutches that he often walked with. However, because of his "good" relationship with prison guards, he still doesn’t have to take part in labor. The Paper’s information shows that Wang Dong’s life in prison is very comfortable:

He has at least seven lovers, at least three of whom have given him money, and the most has given him 80 thousand yuan before and after. A victim, Li Li (a pseudonym), visited him in prison many times, bringing him things ranging from several thousand yuan to tens of thousands of yuan each time.

He has a lot of time, and often chats with his lovers on WeChat and makes phone calls. He often asks Li Li to chat until the early hours of the morning, and Li Li has to go to work the next day, which is too much for her body, but she dare not refuse. He even threatened Li Li to go to prison with nude photos and videos, and had sex with him.

He has many mobile phones, mobile phone numbers and micro-signals. In video chat, he often uses the telecom version of Xiaomi mobile phone, and the signal of China Telecom is very good in prison.

His monthly phone bill is amazing, and many women chatting with him on WeChat recharge his mobile phone number. From January 15th to October 13th, 2014, one of the women recharged Wang Dong’s four mobile phone numbers for a total of 1,770 yuan in less than nine months.

He can get white wine and let his lover buy barbecue from outside the prison and take it in. On June 17, 2014, he suddenly consumed 855 yuan of kebabs. On that day, Wang Dong invited guests to dine with the prisoners in the prison.

According to informed sources, liquor, a contraband in prison, is usually brought in from the outside by the police and mixed in mineral water bottles. In the prison market, the price of a mineral water bottle of white wine is 100 yuan.

He is still gambling in prison. According to the short message he sent to the victim Cai Ying (a pseudonym), he once claimed that he lost a total of 110,000 yuan.

Many sources confirmed to The Paper that Wang Dong’s transit point for contact with the outside world was Kong Deling, a vendor near the prison. All kinds of articles, including contraband, are handed over to the hole by people outside the prison, and then taken to the prison by the prison guards from Kong Deling and handed over to Wang Dong.

Wang Dong is still gambling in prison. The text message he sent to the victim Cai Ying shows that he once claimed that he lost a total of 110,000. (The Paper)

I once joined the naked chat QQ group.

On December 15, 2013, Wang Dong, the prisoner in the fifth prison area of Nehe Prison, added the prison staff Cai Ying through the "people nearby" function of WeChat. At that time, he had just arrived in Nehe Prison for one year, and Cai Ying became the first lover he met through WeChat in prison.

At that time, his alias was "Wang Hao". Later, after he met his lover Lili (a pseudonym), Wang Dong’s name became "Haotian Wang".

After a period of contact, Wang Dong gradually gained the trust of Cai Ying. Cai Ying, 42, has been divorced for many years. She said, "It is also a spiritual sustenance for someone to care about themselves online."

Judging from the chat records, Wang Dong seems to have a good grasp of people’s psychology. Soon, he called Cai Ying "wife" and promised to marry her after he got out of prison.

According to people close to Wang Dong, Wang Dong was the same when chatting with Li Li later. He even said that he kept the nude photos of Li Li because he loved her.

The chat records between Wang Dong and Cai Ying show that Wang Dong often swears, but he always cares about each other in every possible way.

What the reporter learned shows that Wang Dong’s two lovers, in the same area, are familiar with each other and know each other’s relationship with Wang Dong. Before the incident, Wang Dong also learned that the situation was not good, and one of his lovers also helped him find out the wind. According to another person familiar with the matter, Wang Dong also joined a QQ group with the theme of naked chat and met at least one woman here.

People familiar with the matter also said that Wang Dong is proud of having many lovers and often shows it off in front of prison inmates.

According to the reporter’s understanding, after a woman went to prison and had sex with Wang Dong, Wang Dong said that she "felt very proud".

The police helped to compile text messages and send them to the victims.

After meeting Cai Ying for a month, Wang Dong admitted that he was a prisoner. Cai Ying deleted his contact information several times, but Wang Dong kept calling Cai Ying, pleading with Cai Ying to believe him and telling his family address and family status.

He claims to be a businessman, with a car and a house at home and a hot pot restaurant. He said that even if he can’t be a lover, he hopes to be ordinary friends with Cai Ying. Under his constant pestering, Cai Ying later agreed.

After continuing to be friends for nearly two months, on March 8, 2014, Wang Dong asked Cai Ying to call the account of "Han Zhifeng" to buy a mobile phone in 1000 yuan on the grounds of mobile phone failure. A week later, he asked Cai Ying to send 10,000 yuan to the account of "Xu Weidong" (Wang Dong’s second brother-in-law) on the grounds that commutation required money.

After borrowing money twice, Wang Dong borrowed money from Cai Ying for various reasons, such as paying off gambling debts, and mortgaged his car and house at home. He also swore to pay back the money before July 15, 2014.

Cai Ying told reporters that Wang Dong borrowed more than 80,000 yuan from her.

However, when the promised deadline came, Wang Dong still didn’t pay back the money. He sent a text message to Cai Ying, saying that as long as Cai Ying wrote a certificate of voluntary borrowing, he would pay back the money.

After Cai Ying wrote the materials and signed them, she sent them to her second sister, Wang Fang, according to Wang Dong’s request, but Wang Dong still didn’t pay back the money.

Cai Ying said that her monthly salary is only 900 yuan, which is her savings for many years. In order to raise money for Wang Dong, she also borrowed usury. Up to now, the interest alone has returned more than three thousand yuan.

A person close to Wang Dong said that the message was written by a prison guard and sent to Cai Ying by Wang Dong. He said that when Wang Dong chats with women, there are often many prisoners around to make suggestions, and occasionally prison guards are involved.

After the case of Wang Dong in November 2014, Cai Ying handed over all the evidence materials to the prison investigation section of Nehe Prison, claiming that she had been defrauded, but Nehe Prison has not given Cai Ying any reply so far.

(In order to protect the privacy of the parties, Li Li and Cai Ying are both pseudonyms.)

　　"Enriching the social security fund with state-owned capital" has reached a new level.

　　On November 18th, the State Council issued the Implementation Plan for Transferring Part of State-owned Capital to Enrich the Social Security Fund (hereinafter referred to as the "Plan"), which included the central and local state-owned and state-controlled large and medium-sized enterprises and financial institutions in the transfer scope, and the transfer ratio was unified to 10% of the state-owned shares of enterprises, so as to make up for the gap of China’s basic old-age insurance fund through equity dividends.

　　The transfer of state-owned shares of central enterprises, entrusted by the State Council Social Security Fund will be responsible for centralized holding; The transferred state-owned shares of local enterprises shall be centrally held, managed and operated by wholly state-owned companies established by provincial people’s governments. The transferred state-owned shares may also be entrusted to the special account management of companies with state-owned capital investment and operation functions in this province (autonomous regions and municipalities).

　　The Third Plenary Session of the 18th CPC Central Committee and the Fifth Plenary Session of the 18th CPC Central Committee have clearly stated that "some state-owned capital should be transferred to enrich the social security fund". The report of the 19th National Congress of the Communist Party of China further puts forward requirements for strengthening the construction of social security system. The issuance of this plan made people hear the sound of boots landing.

　　On the one hand, the aging of the population and the gap in pension funds that need to be filled, and on the other hand, the state-owned enterprises that are on the road of deepening reform. What impact will the transfer of state-owned capital into the social security fund and other stakeholders (hereinafter referred to as "stakeholders") have? Can it accelerate the process of mixed reform of state-owned enterprises and inject more vitality into state-owned enterprises?

　　From "reduction" to "transfer"

　　This is not the first time that the government has used the power of state-owned capital to contribute to the social security fund.

　　As early as 2001, the State Council issued the Interim Measures for the Administration of Reducing State-owned Shares to Raise Social Security Funds, which stipulated that all state-owned joint stock limited companies (including companies listed overseas) should sell state-owned shares at 10% of the financing amount and turn them over to the social security fund when issuing and issuing additional shares to public investors for the first time.

　　Eight years later, the Ministry of Finance, together with the State-owned Assets Supervision and Administration Commission, the China Securities Regulatory Commission and the Social Security Fund, issued the Implementation Measures for Transferring Some State-owned Shares in the Domestic Securities Market to Enrich the National Social Security Fund, which stipulated that when a state-owned joint stock limited company went public for the first time, it would transfer 10% of the shares actually issued, and the shares would be held by the National Social Security Fund Council.

　　The transfer, the Ministry of Finance said, is to transfer some state-owned capital to enrich the social security fund, mainly for the equity of central and local enterprise groups, and generally does not involve listed companies.

　　From "reduction" to "transfer" and from "listed company" to "group company", experts think that the meaning is very different.

　　"For the transfer of listed companies, there is a question of whether the board of directors and the shareholders’ meeting agree or not, whether it is ‘ Voting by hand ’ Or ‘ Vote with your feet ’ Will trigger a strong reaction from the capital market. " Qi Yudong, a professor at the School of Economics and Business Administration of Beijing Normal University, believes that the effect of the transfer of group equity is quite different. "There is no question of whether other shareholders agree or not to allocate 10% of state-owned capital to the social security fund through administrative means."

　　This way of transferring state-owned capital shares is simpler, more direct and immediate to experts. Zheng Bingwen, director of the World Social Security Research Center of China Academy of Social Sciences, believes that the scope and volume of this transfer have greatly increased compared with the past.

　　According to the annual report (2016) issued by the Social Security Fund of the National Social Security Fund Council, the total assets of the social security fund were 2,042.328 billion yuan at the end of 2016. "If all the state-owned capital involved is transferred, the income of the social security fund is enough to exceed 10 trillion yuan." Zheng Bingwen estimated that "it can not only reduce the financial burden, but also help the stability of the system."

　　The purpose and use of this share transfer is more directional than in the past. According to the Proposal, the basic goal of equity transfer is to make up for the gap in the basic endowment insurance fund for enterprise employees.

　　The "deemed payment period" refers to the pension rights and interests formed by employees of state-owned enterprises and institutions under the original unit security system before the implementation of the reform of the basic old-age insurance system. Because the original unit security system has not accumulated contributions, the "transitional pension" generated by the "deemed payment period" is equivalent to the "pension debt" embedded in the basic old-age insurance system from the outside, forming a gap in the basic old-age insurance fund.

　　Some scholars have suggested that the gap caused by this historical reason should not be made up by raising the payment rate or transferring it to the next generation, but we can consider using the power of state-owned capital to make up the gap.

　　"It is a proper meaning for state-owned capital to be taken from the people and used by the people." Li Jin, a researcher at the Research Center for the Reform and Development of State-owned Enterprises of Renmin University of China, believes that from the current situation, pension funds in some areas have a large deficit, which has been filled by finance and is unsustainable in the long run. Transferring state-owned capital into social security can also let the whole people enjoy the fruits of the development of state-owned enterprises.

　　According to the Proposal, the the State Council entrusts the Social Security Fund to be responsible for centralized holding, separate accounting, assessment and supervision of the transferred state-owned shares of central enterprises. When conditions are ripe, with approval, the Social Security Fund can set up a pension management company to independently operate the transferred state-owned shares of central enterprises.

　　The transferred state-owned shares of local enterprises shall be centrally held, managed and operated by wholly state-owned companies established by provincial people’s governments. The transferred state-owned shares can also be entrusted to the special account management of companies with state-owned capital investment and operation functions in this province (autonomous regions and municipalities).

　　The data shows that the average annual investment return rate of the National Social Security Fund since its establishment is 8.37%, and the accumulated investment income is 822.731 billion yuan. Dong Keyong, secretary-general of the 50-member Forum on China’s Pension Finance and former dean of the School of Public Administration of China Renmin University, believes that the national social security fund is stable and suitable as the undertaker in terms of annualized rate of return.

　　In fact, before the implementation of the national plan, Shandong Province has become the first region to "eat crabs".

　　In 2015, Shandong Province issued the Plan of Enriching Social Security Fund by Transferring State-owned Capital of Provincial Enterprises, which requires 30% of the state-owned capital of 471 provincial state-owned enterprises (including state-owned capital in state-owned shareholding enterprises) to be transferred to enrich the provincial social security fund. And it is held by the Provincial Social Security Fund Council through one-time transfer.

　　Zheng Bingwen believes that Shandong’s pioneering efforts give a good reference to all localities, and the transfer of local state-owned assets greatly reduces the pressure on local finance and helps to make up for the current gap of pension funds.

　　Enterprises with strong competition are suitable for priority transfer.

　　For the progress of equity transfer, a two-step plan is given in the Plan.

　　The first step is to select some central enterprises and some provinces to carry out pilot projects this year, including 3-5 central enterprises and 2 central financial institutions. The second step is to transfer the state-owned shares of other qualified central management enterprises, enterprises run by central administrative institutions and central financial institutions in batches in 2018 and beyond on the basis of summing up the pilot experience. The people’s governments of all provinces (autonomous regions and municipalities) are responsible for organizing and implementing the transfer of state-owned shares of local state-owned enterprises.

　　At present, the benefits of central enterprises and local state-owned enterprises have improved significantly. In the first three quarters of this year, central enterprises realized a total operating income of 19.1 trillion yuan, the best level in the same period in the past five years. From January to October, the economy of state-owned enterprises operated steadily and made progress, and their income and profits continued to grow rapidly.

　　According to Zhu Boshan, an expert on state-owned assets and general manager of Shanghai Tianqiang Management Consulting Co., Ltd., in the past, social security funds could obtain liquidity income through equity transfer of listed companies, but this time, through equity transfer of central enterprises and local state-owned enterprise groups, social security funds relied more on dividends during the three-year lock-up period. "Therefore, the corporate benefits of the transfer are particularly important."

　　Zhu Boshan believes that although the timetable is given in the "Proposal", from the perspective of efficiency, some enterprises with good benefits but monopoly nature are suitable for equity transfer earlier. Gao Minghua, director of the Research Center for Corporate Governance and Enterprise Development of Beijing Normal University, believes that the more competitive the enterprise, the more suitable it is to give priority to the transfer of equity. "Fully competitive industries that do not involve the national economy, people’s livelihood and national security can be transferred first, but industries with scarce resources like oil are not suitable for premature liberalization, otherwise it is easy to pursue profits excessively, resulting in over-exploitation of scarce resources."

　　The number of central enterprises is small, and the corporate governance structure is relatively clear. In comparison, many "zombie enterprises" exist in local state-owned enterprises, and they are being gradually cleaned up in the reform of state-owned enterprises. In Dong Keyong’s view, this is a gradual process. Therefore, the speed of local state-owned enterprises in the process of equity transfer will be slower than that of central enterprises. "There will be different ways in different places, which need to be adapted to local conditions. This transfer method is conducive to improving the governance level of state-owned enterprises."

　　Qi Yudong believes that the transfer of equity at the level of group companies can realize the diversification of property rights of the parent company. From the perspective of state-owned enterprise reform, property rights reform is an improvement. Zhu Boshan also believes that before the mixed reform of state-owned enterprises, it was more at the level of subsidiaries of central enterprises. In the future, social security funds will enter group companies to improve the monopoly situation, which will also help the implementation of mixed reform at the parent company level.

　　"The property right structure determines the governance structure, which in turn determines the company’s performance and value improvement." Qi Yudong pointed out that for a long time, a monopoly easily led to a monopoly, which in turn led to a monopoly. Starting from the reform of property rights, we can import new financial investors into state-owned companies.

　　Institutional investment enterprises such as pension funds have precedents abroad. Qi Yudong told China Youth Daily and Zhongqing Online reporter that in foreign countries, funds belong to new strategic investors, which can improve the property right structure of enterprises in the process of investing in enterprises, and then improve the corporate governance structure.

　　"But strategic investors and financial investors are different." Qi Yudong pointed out that from the current "Program", the government temporarily defined the social security fund as a financial investor. According to the Proposal, social security funds and wholly state-owned companies in various provinces (autonomous regions and municipalities), as financial investors, enjoy the right of income and disposal of state-owned shares, do not interfere in the daily production and operation management of enterprises, and generally do not send directors to enterprises. When necessary, directors may be sent to the enterprise upon approval.

　　In Zhu Boshan’s view, the scope of the enterprises transferred this time is very large, and the number is too large. It is really difficult for the undertaker to send people to each enterprise. However, when the enterprise loses money or has problems in its development strategy, it can consider sending people to the board of directors.

　　Qi Yudong believes that the current shareholding ratio of the undertaker is low, and it is not feasible to participate in corporate governance. If after the restructuring of the group company, the equity becomes highly diversified, and the undertaking entity holds 10% equity, which is not a small proportion, its status as a financial investor should be transformed into a strategic investor, "to further participate in and improve the corporate governance level."

　　In Gao Minghua’s view, according to the current regulations, the proportion of transferring 10% equity into the social security fund is not high, and it is difficult to form checks and balances on major shareholders. "In addition to the social security fund Council and other stakeholders, it is necessary to introduce more social capital to make the equity more diversified." He pointed out that joining the board of directors is only a direct way to participate in the operation of enterprises. Even if no one is sent to the board of directors, according to the provisions of the Company Law, the undertaker as a shareholder can also participate in decision-making, supervise and question the board of directors.

　　Does diversification of property rights mean that the level of corporate governance can be improved? In Gao Minghua’s view, it depends on whether institutional investors can play an active role. "Foreign institutional investors will evaluate the corporate governance level of their investments and publicly release relevant information, thus prompting enterprises to improve their corporate governance level."

　　He believes that if an institutional investor is only a passive investor, it will have little effect on improving the level of corporate governance. In the future, the social security fund will hold a large number of shares, and the National Social Security Fund Council needs to expand the team and attract corporate governance professionals. "The government should have some supporting programs, and the undertaker should not be a passive participant."

　　New problems may arise in the process of transfer.

　　After the promulgation of the "Program", some experts believe that there are still many practical problems that cannot be avoided in the process of future equity transfer, which need further explanation from the government.

　　Zheng Chunrong, deputy dean of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, pointed out that the object of participation in the transfer was listed companies, which was more adequate in information disclosure. "This transfer is all state-owned capital. After the equity transfer, because these companies are not listed, there are certain challenges in the disclosure and supervision of business management information. "

　　Zheng Chunrong is worried that some local governments may be lucky in the future transfer process. "In order to avoid the transfer of equity, it may be deliberately said that some enterprises are public welfare enterprises and will not be transferred." Although the state has made basic provisions on the nature of commercial state-owned enterprises and public welfare state-owned enterprises, Zheng Chunrong believes that the identification of the nature of enterprises needs to be explained in more detail.

　　"There is another problem, that is, the transfer ratio is unified to 10% of the state-owned equity of the enterprise." Zheng Chunrong pointed out that the number of state-owned enterprises and retirees varies greatly from province to province, and there are also great differences in the stock equity of state-owned assets. There may be many retired old workers in some provinces, and the total equity of state-owned enterprises is limited, so there are great differences between provinces.

　　In Zheng Bingwen’s view, due to the great differences in the operation of state-owned assets in different places, the transfer of local state-owned capital may be uneven. "There will be differences in the transfer strength, results and time in different provinces." He pointed out that areas with relatively large state-owned assets happen to be areas where the phenomenon of aging population is more prominent. These areas will face two pressures. On the one hand, the current capital flow pressure of pension funds is relatively high, and the gap must be made up by transfer; On the other hand, the state-owned economy in these areas has problems of low efficiency and low income.

　　"This is a contradiction." Zheng Bingwen believes that this will test whether the local government regards the transfer as a burden or an opportunity. "In some areas, local fiscal revenue will be under greater pressure, and there may be a wait-and-see attitude towards the transfer. However, after the transfer, it will actually help improve the operational efficiency of state-owned enterprises, improve the transparency of enterprises, and improve the governance structure of the state-owned economy, which may lead to a win-win situation. " In his view, we can let the provinces with better state-owned economy move first and give other provinces a reference.