By Yingxiong Gao, Reporter of the Orient Morning Post (博讯boxun.com)

　　This is a very special case.

　　This is an extremely unbalanced contest.

　　One side is Mingzhe Ma, Chairman of Ping An Insurance Company, who controls above 100 billion state-owned-asset in China. The other side is Kun Hu, a Ph.D. student at Fudan University majoring in Finance.

　　Dramatically, the case attracted lots of medias when it was revealed through Internet, but soon all kept silence.

　　Rumors about why the media’s reports were sealed up and the invisible power in the case that appears gleaming, all make the case complicated and confusing.

　　But three years later on October 24, 2003, 21st Century Talent Report suddenly reported the case at some length in the title of “investigation of the unjust detention case of Kun Hu”, and made the case, which was under-covered for 3 years, re-emerged.

　　What’s the case really about? How a Fudan Ph.D. involved in the case step by step? And why a boss of a state-owned-enterprise, who has high level of social class and tremendous power, would like to stick like a limpet with a Dr.?

“Leaving Mingzhe Ma, and Leaving Danger”

　　“If not resigned, the later things would absolutely not happen.” Kun Hu said. But he still believes that he was not wrong when he said goodbye to Ping An Company.

　　In April of 1973, Kun Hu was born in a worker’s family in Baoji Petroleum Machinery Manufacturing Plant in Shaanxi. In September of 1990, Kun Hu entered the Electrical Engineering Department of Fudan University at the age of 17. According to Hu’s words, it’s “really hard” during his undergraduate study and he felt like that he “cannot finish his electrical engineering major”. After finished his undergraduate study, Hu stayed at Fudan and “transferred” to pursue his master’s degree majoring international fiancé.

　　In January of 1998, Kun Hu successfully finished his defense of his master’s dissertation and graduated one semester in advance. In fact, he began his career at Ping An Insurance from June of 1997. He worked as an analyst in Ping An Securities Company, which is a subsidiary company of Ping An Insurance. Soon, Hu was recognized by an assistant general manager and began to be his secretary. At the beginning of 1998, as the Chairman’s office need some help, Kun Hu was recommended to work as Mingzhe Ma’s secretary and became one of the staff who are the most close to Mingzhe Ma.

　　As commented by his colleague who knows the inside story, Kun Hu has “sharp thinking, good theoretical foundation, and good writing ability”. During his two years working in the Chairman’s office, Kun Hu’s major task was writing report and files. Many files of Ping An Company’s important reform plan, such as restructure of different financial business, establishment of financial group and IPO etc., all were from Kun Hu’s hand. Kun Hu said that he worked day and night during that time, and “almost no time for sleep”.

　　In May of 1999, Kun Hu was promoted to assistant general manager of secondary department, which was the same level as an assistant general manager of a branch company. And the position was the highest level among the secretaries working for the Chairman’s office at that time. Kun Hu said that he finished a book draft, challenging Competition: a Discussion of the Reform and Development of Chinese Domestic Insurance Industry (Challenging Competition), in September. The Commercial Publishing House publicly published the book in the name of Mingzhe Ma three months later. “At that time, Mingzhe Ma had promised that he will not treat him unfairly ”. During this period, Hu also participated in the job of the revision of three book drafts, Ping An Philosophy, Ping An New Quotation, and Ping An Stories.

　　Because of his “tremendous contribution”, Mingzhe Ma granted 50,000 shares in the name of Ping An Company to Kun Hu in December 26, 1999, the time was shortly after the publication of Challenging Competition. Calculated by comparable price, the shares worth above 80,000 RMB at that time. One week later, Kun Hu got the certification of the shares.

　　People close to Kun Hu said that Ma recognized Hu more and more as they worked together. The two persons became more and more close. One time, in Mingzhe Ma’s house, Ma hugged Hu’s shoulder and said, “you will also have a house like this soon”. The words from Mingzhe Ma are just like happened yesterday when Kun Hu recalls.

　　But something out of Mingzhe Ma’s anticipation, the time he hobnob with Kun Hu was the time Kun Hu begin to “leave” him. At the same time, Ping An Company was also in some trouble. Middle and high-level executives were leaving the company frequently. High-level executives such as Gang Li, Sheng Cai and Zhiguang He, resigned at the same time. And this make Kun Hu felt “subtly that the affairs would diffuse”.

　　At the end of February 2000, just after the annual meeting of the company, Kun Hu expressed his desire to leave the chairman’s office. Afterwards Kun Hu said, “thinking about leaving is leaving Mingzhe Ma, and leaving danger”.

　　One day before Kun Hu’s resignation, the first working day just after the Y2K spring festival, Mingzhe Ma asked him to “send a thing”. He felt the potential and tremendous danger, which makes him make decision to leave the chairman’s office. What the “thing” is? To whom it had been sent? And why it’s very dangerous? Kun Hu said that he couldn’t disclose temporally at now.

　　But Kun Hu’s desire to be far away from “danger” could not become true. Kun Hu said that Mingzhe Ma agreed to transfer his position to Shanghai but break his agreement later and arranged Kun Hu to work for the Development and Reform Center of the Group. In his new position, Hu felt very dissatisfied.

　　On March 26, Kun Hu sent a fax to Mingzhe Ma’s house and expressed his desire to resign. He also asked Mingzhe Ma to agree his four claims in the fax. The first claim was to cash in the 50,000 shares. The second claim was to give him six months salary compensation as the same as employee been dismissed. The third claim was to realize the annual Excellent Employee Award and the Company Suggestion Award. The fourth claim was to grant the related author’s remunerations to him.

　　Kun Hu said that Mingzhe Ma agreed his last two claims. But the 50,000 shares, which Kun Hu had already got the share certification, were confiscated by word of mouth. Ma said that Hu had already got the author’s remunerations and “should not care for the money”. Two days later, Kun Hu finished all his procedure to resign and post off to Shanghai to attend the Entrance Examination for the Ph.D. study at Fudan University, which would be held at the beginning of April.

　　In September 2000, Kun Hu achieved what he wished and became a Ph.D. student admitted in 2000 in the Department of International Finance. At Fudan, the university of academic importance, the study life of Kun Hu was peaceful and fruitful.

Contest for Copyright

　　But Kun Hu’s peaceful campus life could not last long. In October 2001, a rumor hit Kun Hu and broke his peaceful campus life.

　　As the rumor said, high-level executives of Ping An Insurance had dinner together in October 2001 during the Shenzhen Hi-tech Fair. During the table talk, some one asked about the reason for Kun Hu’s resign from Ping An. Mingzhe Ma’s answer was that because Kun Hu took the “printing commission” secretly.

　　After knowing the rumor, Kun Hu called to Chairman’s office for four times and wished to “communicate” with Mingzhe Ma. But a secretary turned him away.

　　As Kun Hu said, he began to consult the lawyer when he could not find ways to “communicate” with Ma. And he wished to solve the problem through legal ways and educed the case of Challenging Competition.

　　On October 31, Kun Hu’s lawyer sent a lawyer’s letter related to the infringement of the copyright of Challenging Competition to Mingzhe Ma. The lawyer’s letter said that Challenging Competition’s “author and copyright owner is Mr. Kun Hu” and negotiation could solve this case without hurting mutual relationship. But if Mingzhe Ma didn’t want to negotiate to solve the problem, “the lawyer will represent Mr. Kun Hu to start the civil litigation procedure”.

　　But at this time, Kun Hu was very hesitating. He said that he didn’t want to confront “a man whom he had respected a lot at past” in his heart. The goal of his asking the lawyer to send the lawyer’s letter was just want to make Mingzhe Ma pay attention. And several high level executives in the foreign insurance company which he was working part time also advised him not to start the litigation procedure and not hurt the relationship.

　　What happened later shows that Mingzhe Ma paid attention to the lawyer’s letter of Kun Hu’s lawyer. As Kun Hu said, Ma asked people to investigate Hu’s employee contract in the HR department and Hu’s financial record in the accounting department. At the same time, Ma also asked several related persons to persuade Kun Hu not start any action.

　　At this time, Jihui Wang, who was Ma’s secretary, also communicated with Kun Hu privately. Kun Hu asked Jihui Wang to send his words to Mingzhe Ma that he still respected GM Ma a lot although he had some complaint in heart. He didn’t want to hurt Ma and also didn’t want Ma to hurt him.

　　After some consideration, Kun Hu didn’t start the civil litigation procedure at the end. He decided to “wait”.

　　But Kun Hu got a lawyer’s letter during his wait.

　　On December 14, 2001, Kun Hu login his email as normal and a lawyer’s letter jumped out from his email box. The lawyer’s letter representing Ping An Insurance Company of China and concerning “the infringement of the intellectual property and business secret” of Ping An Company, deemed that “some academic and reviewing articles published during and after” Kun Hu worked for Ping An “infringed the intellectual property and business secret of Ping An Insurance Company of China”. At the same time, the lawyer would “investigate the possible take-over company property (not only restricted to intellectual property)” of Kun Hu. The lawyer’s letter claimed at the end that “will decide to litigate or not, according to the development of the state of affairs”.

　　At once, Kun Hu felt like “hot blood gushing his head”. He couldn’t anticipate Mingzhe Ma doing things like this.

　　“All my publications are academic paper. The studying basis are related public data and impossible to be any relation to Ping An’s intellectual property and business secret”, Ku Hu said. “And the contract between Ping An and me had already been tore to shreds when I resigned in March 2000, there are also no forbidding-to-enter-the-related-industry contract between Ping An and me, and we can say that there are no legal restriction between us to preserve business secret”.

　　And for the alleged “take over company property” which were the author’s remunerations of four books, Kun Hu explained to the reporter in detail.

　　On February 28, 2000, Kun Hu representing Mingzhe Ma, signed for the author’s remuneration of the Challenging Competition simply-binding and edition-binding from the Beijing Commercial Publishing House. The author’s remunerations totaled RMB 32,564.74 (after personal income tax). As required by the accounting department of the Commercial Publishing House, Kun Hu showed his ID and signed in the registration book of remuneration as “Kun Hu, representing” when he signed for these remuneration.

　　Kun Hu said that he had handed these remunerations to Mingzhe Ma after he brought back (and there were only Mingzhe Ma and him at that time). Ma said that “the book was written by you and the author’s remunerations belong to you”. Kun Hu took the author’s remuneration.

　　But in March 16, 2000, Mingzhe Ma claimed that the author’s remunerations belong to him and he already got them, in an article, which was published in the front page of Ping An Insurance, an internal published newspaper by Ping An Company.

　　In April of 2000, the traditional Chinese version of Challenging Competition was publicly published. Shortly after that, the Commercial Publishing House publicly published three books, Ping An Philosophy, Ping An New Quotation, and Ping An Stories, which affixed Mingzhe Ma’s name. In June, Kun Hu received notification from Mingzhe Ma through secretary Jihui Wang, to take the author’s remunerations.

　　After receiving the notification, Kun Hu asked his classmate Zhenyu Tian, who was working at Shenzhen during that time, to take the 2,000 USD remunerations and one book of Challenging Competition traditional Chinese version from Jihui Wang. On June 19, Kun Hu went to Beijing like last time and signed for the remunerations of the three books, Ping An Philosophy and others, which totaled 41,617.70 RMB (after personal income tax) from the Commercial Publishing House, representing Mingzhe Ma

　　Kun Hu thinks that he had done nothing wrong during all these procedures. So, his basic attitude to the lawyer’s letter representing Ping An Company was “turning his back on it”.

　　“I haven’t taken any of his company’s asset. What should I worry for?” Kun Hu said, “I haven’t leak any of his commercial secret and have no contact with him. What should I worry for?”

Criminal Case under Dissention

　　In January 2002, Ping An Insurance Company reported a case to the Shanglin Police Station of the Futian Branch of the Shenzhen Public Security Bureau and claimed that Kun Hu was suspected to take over Ping An Company’s asset. The company’s asset accused by Ping An that Kun Hu took over, were the author’s remunerations totaled 74,182.44 (after tax) which were related to the four books, Challenging Competition and others, publicly published by the Commercial Publishing House in the name of Mingzhe Ma and others.

　　On January 25, 2002, two police in civvies from Shenzhen (one of them was an employee working for the internal auditing department of Ping An Company who pretended himself a police, according to Kun Hu’s verification subsequently), arrived Shanghai and went to Kun Hu’s dormitory in the Graduate Student Dormitory of the South District of Fudan University, with several people of the related department of Shanghai. Kun Hu was not in the dormitory at that time.

　　Two months later on April 12, 2002, on his way to the Culture Security Branch of Shanghai Public Security Bureau, Kun Hu was hold up by three police officials of the Shanghai Pubic Security Bureau. At 10 pm the same day, two police officers from the Shanglin Police Station and the Futian Branch of the Shenzhen Pubic Security Bureau arrived Shanghai. They interrogated Hu, recorded the oral statement and detained Hu as criminal in the name of suspect of take-over-by-taking-advantage-of-his-office crime. Five days later, Hu was sent under escort to Shenzhen.

　　The case that Kun Hu was detained as criminal, immediately attracted attention of the Shanghai Government, the Bureau of Culture and Education and the leaders of Fudan University. According to university employee’s disclose, as early as April 8, 2002, several comrades related of the university and Shanghai Pubic Security Bureau had flied to Shenzhen and negotiated with Shenzhen police about Kun Hu’s case. But “Shenzhen police’s attitude is very firm. The person must be taken to Shenzhen and they don’t agree to settle the case in Shanghai”. Some one who knows the truth disclosed that “The opinion of Shanghai police and the opinion of Shenzhen police are inconsistent” in Kun Hu’s case.

　　Not only the Shanghai police, even the Shenzhen Procuratorate’s opinion is inconsistent with Shenzhen police’s opinion.

　　On May 22, 2002, The People’s Procuratorate of Shenzhen Futian District disapproved the arrest application aimed at Kun Hu, which was reported by the Futian Branch of the Shenzhen Pubic Security Bureau, for the reason of “no enough evidence and take-over-by-taking-advantage-of-his-office crime not constituted”.

　　On May 24, 2002, the Futian Branch of the Shenzhen Pubic Security Bureau changed the compulsory measure to Kun Hu to residential surveillance. Subsequently, Hu was under residential surveillance in the Guard Training Center of the Futian District in Shenzhen.

　　On June 10, 2002, the People’s Procuratorate of Shenzhen Futian District disapproved the arrest application aimed at Kun Hu for the second time, and also disapproved the reconsideration application for the arrestment of Kun Hu in the same reason hereafter. The People’s Procuratorate of Shenzhen also disapproved the review application for the arrestment of Kun Hu at the end of August.

　　“For all the no-prosecute and no-arrestment cases, we handled especially careful, and checked strictly from truth, law and evidence”. A related responsible person from the Procuratorate of Shenzhen told reporter.

　　As early as in the first half of this year, a domestic media had covered the case continuously as long as for two months. During the media interview, a related responsible person from the Shenzhen Procuratorate said that there were two major reasons to disapprove the arrest application from the Futian Branch of Shenzhen Pubic Security Bureau. One reason is that the take-over-by-taking-advantage-of-his-office crime accusation cannot be constituted because the suspect had already left Ping An Company and no longer work for the company. At most, only can suspect he was suspected to “fraud”. The second reason is that Shenzhen has no legal jurisdiction for this case. Even if the behavior of Kun Hu’s taking money from the Commercial Publishing House is recognized as crime, the location of the crime is in Beijing. And according to stipulation of the Criminal Procedure Law, the legal jurisdiction should belong to Beijing. Moreover, time limitation expired is also one of the reasons for the disapproval of the case check.

　　An anonymous law authority points out that, as the author’s remunerations of the four books that Kun Hu signed representing Mingzhe Ma, had already been deducted personal income tax by the Beijing Commercial Publishing House, so “according to law, cannot deem the author’s remunerations after personal income tax to be company asset”. In addition, according to the stipulation of China’s related laws, even if Kun Hu really took over the company asset, the case should be handled by the Procuratorate or the Court to register, investigate, collect evidence, put into effect and summons, and “direct arrestment by the police is against China’s existing laws”.

　　After hearing about the disapproval of the arrest application aimed at him, Kun Hu’s intensified heart finally becomes easy. Kun Hu said, on the way he was sent under escort from Shanghai to Shenzhen, when a police official told him that “you should have no other ideas in three to five years”, he felt almost despairing.

Zigzag Negotiation

　　After the arrest application aimed at Kun Hu from the Futian Branch of Shenzhen Pubic Security Bureau was disapproved, the “imbroglio” between Kun Hu and Mingzhe Ma haven’t been finished, and Kun Hu was still under residential surveillance.

　　During the three months from June 17, 2002 to Kun Hu was bailed out, the Ping An sides “start offensive” ceaselessly to “negotiate” with Kun Hu and Kun Hu’s family.

　　On July 3, Ping An Company sent its employee Ruisheng Sheng, who was responsible for propaganda and public relation, to Kun Hu’s hometown in Baoji, Shaanxi, and “persuade” Kun Hu’s mother to go to Shenzhen to persuade Kun Hu, and Ping An Company would pay for all the cost. And promised that “if Kun Hu agrees to their terms, they can persuade the police to set Kun Hu free”.

　　“At that time, I think that arm cannot wrestle to win the thigh, so free my son firstly”. Hongying Han, Kun Hu’s mother, told reporter at the other end of the telephone line.

　　Based on the tape recording of the discussions and telephone talking between Ping An Company’s represent and Kun Hu’s mother, Ping An’s “terms” mainly including: firstly, Kun Hu admit that the copyrights of Challenging Competition and the three books of Ping An Philosophy etc., belong to Ping An Company; secondly, the author’s remunerations belong to Ping An Company and should be returned to Ping An Company; thirdly, Kun Hu must apology to GM Ma, redeem the losses and effects of Ping An Company and GM Ma; fourthly, Kun Hu must not take any lawsuit against GM Ma and Ping An Company, and not spread any information negative to GM Ma and Ping An Company.

　　On July 17, Ruisheng Sheng and a police official from the Futian district accompanied Hu’s mother to meet Kun Hu. During the meeting, Ruisheng Sheng took out a beforehand drafted and printed “letter of commitment” and asked Kun Hu to sign. The “letter of commitment” required Kun Hu to promise, “Challenging Competition is a production of group work of Ping An Company. I am one number of the group who drafted the book. I admit that individual doesn’t possess Challenging Competition’s copyright, right of authorship, jointly right of authorship and the author’s remuneration”, etc. Kun Hu revised the printed manuscript as “Challenging Competition was published in GM Ma’s name. I am the one who drafted the book. I would like to give up Challenging Competition’s copyright, right of authorship, jointly right of authorship and the author’s remuneration”. Kun Hu said that Sheng denied the revised letter of commitment.

　　On September 1, Guangzhong Xu, assistant general manger of Ping An Insurance Company, visited Kun Hu who was under residential surveillance, and inquired Hu whether he would keep on accusing Mingzhe Ma after his release. Guangzhong Xu was the highest-level executive from Ping An that Kun Hu had met since he was detained and under residential surveillance.

　　Although Hongying Han still cannot understand until now, “my son just wrote a book, how could he wrote out a criminal case”, but as a mother, she had no idea except hoping his son could “come out” safely.

　　On September 19, Hongying Han, who was “eager to rescue her son”, accompanied by Kun Hu’s younger sister and a police official, met Kun Hu again and persuade Kun Hu to write to the Pubic Security Bureau, Ping An Insurance Company and Mingzhe Ma, each a letter of mistake acknowledgement. Kun Hu accepted his mother’s advice and he only “admit mistake”, not “admit crime”.

　　In his letter to Ping An Company, Kun Hu promised “I will not take any lawsuit for the author’s remuneration and copyright of Challenging Competition, Ping An New Quotation, Ping An Philosophy, and Ping An Stories in the future. I have no right in them and would like to refund the author’s remuneration”.

　　The letter Kun Hu wrote to Mingzhe Ma was even shorter. In the letter, Kun Hu promised that will not take any lawsuit against Ma and Ping An Company; and will not discuss and publish any review or articles related to Ping An Company’s internal affairs and Ma.

　　On September 20, Kun Hu was set partially free under restriction in the name of awaiting trial after obtaining a guarantor. The related person reminded Kun Hu “had better keep silence, especially don’t meet news reporters”.

　　On September 12, 2003, Kun Hu received a letter from the Futian Branch of the Shenzhen Pubic Security Bureau, which enclosed a “Decision to Terminate the Period for Awaiting Trial after Obtaining a Guarantor”. After been under compulsory measures by the police for 519 days (including 43 days of criminal detention, 119 days under residential surveillance, and 357 days of awaiting trial after obtaining a guarantor), Kun Hu was recovered freedom finally. This moment is above three months from that Kun Hu graduated from the Ph.D. program at Fudan University.

Invisible Power

　　Although Kun Hu’s case had ended, but the mysterious fog around and behind the case haven’t been cleared off. How could a normal civil case been transformed successfully to a criminal case? Why the medias that thronged to report the case enthusiastically at the beginning, ceased all activities at the end?

　　The reporter heard three versions about the “Ma-Hu contest”. The first version thinks that there is only copyright dispute between Mingzhe Ma and Kun Hu. Ma resent and retaliates against Hu. The second version thinks that Kun Hu has lots of “problem” materials about Mingzhe Ma. Mingzhe Ma is afraid the leak of these materials and get the drop on to “erase” Kun Hu. The third version thinks that Ping An is in both internal and external troubles, which ignite the trust crisis to Mingzhe Ma, so Kun Hu’s case is to “kill the chicken to threaten the monkey”. Which of the three versions of the stories is correct or wrong, no one can validate at now.

　　Something strange is that even Kun Hu, one of the parties involved, finds more and more strange things when recall what happened during the beginning and the end of the case. Why the rumor of October 2001, could be sent to his ear in time and in accuracy? The author’s remunerations were clearly in the middle of 2000, why this could be re-instituted and exaggerated one year later? Hu could be informed in time about any sign of disturbance or trouble about this case in Ping An’s headquarter, including that the Shenzhen police went to Shanghai to arrest, was informed to him in advance.

　　Besides Hu’s intimate colleagues and friends, there were also some “friends from Shenzhen” whom he is not familiar, provided information to Kun Hu. From the confidentiality, in time and reliability of these information, we can see that the levels of these “friends from Shenzhen” are very high. Impersonal speaking, this invisible power makes the “Ma-Hu contest” more and more furious.

　　“Mingzhe Ma always suspects that Ping An’s competitors or other interest group outside Ping An controls this matter, but the problem is not so simple from present viewpoints.” Kun Hu said, “a kind of power from both the internal and external Ping An, is stirring up the trouble.”

　　From the autumn before last year’s autumn to now, three winter-summer had passed, but there are also mysterious fog in the “case” between Dr. Kun Hu and Ping An Company. Where the mysterious fogs come from and why they not disappear, and when Kun Hu could “re-appear”? From today’s complexion, we cannot make a conclusion.

　　A detail affording for thought is that Shenzhen government dismissed Mingzhe Ma’s general manager title of Ping An Company which he had possessed for 15 years, at the same time when Kun Hu was “terminated the period for awaiting trial after obtaining a guarantor” in September of this year. (博讯boxun.com)