Chen Zhi, a Chinese-born businessman sanctioned by the United States and Britain over alleged human trafficking ties to a Cambodian cybercrime network, has reportedly been reported as a key figure behind a dramatic surge in global Cuban cigar prices.
The report, from East Week magazine, a sister publication of The Standard, said that Chen, through the Hong Kong-registered Asia Corporation, acquired a 50 percent stake in Habanos, the worldwide distributor of Cuban cigars, and subsequently leveraged this control to inflate market prices.
Following the acquisition, a box of Cuban cigars that originally retailed for HK$4,000-5,000 now sells for approximately HK$18,000, according to an industry source.
The source attributed the increase to Chen's position as global exclusive agent, noting his strategy of releasing special editions and holding annual auctions has driven prices for some products as high as HK$500,000 – a tenfold increase.
Chen, founder of the Cambodian conglomerate Prince Group and a former adviser to ex-Prime Minister Hun Sen, reportedly generated profits exceeding 220 million euros (HK$1.98 billion) from the cigar business, the magazine said.
The stake was purchased in 2021, when UK-based Imperial Brands sold its 50 percent share in Habanos for US$1.4 billion (HK$10.92 billion) to a consortium of investors. Chen was identified as one of the members of that buying group.
The U.S. and UK governments have sanctioned Chen for his alleged leadership of a cyber-scam operation in Cambodia that engaged in human trafficking and fraud.
