According to New Tang Dynasty (NTD), citing online reports and local sources, a sportswear distributor who had operated in one of northwest China’s major shopping malls for decades fell seven stories to his death on July 1, 2026—just one day after receiving an eviction notice. The incident followed years of disputes with the mall, which had imposed a financial penalty exceeding 11.4 million yuan (about US$1.6 million).
Family members, former employees, and witnesses allege that mall staff removed the man’s body and cleaned the scene before police completed their on-site investigation. Chinese authorities have not publicly addressed these allegations, even as local police ruled out criminal activity.
A longtime tenant, a $1.6 million penalty, and an eviction notice
Shortly after noon on July 1, Yan Peng, chairman of Xi’an Lihe Trading Company, fell to his death from the seventh floor of the SEG International Shopping Center in Xi’an, the capital of Shaanxi Province.
Lihe Trading had operated inside the mall since its founding in 1998. Family members and former colleagues described Yan as one of the earliest merchants to establish major international sportswear brands, including Nike, Adidas, and New Balance, inside SEG, helping transform it from a second-tier shopping destination into one of western China’s largest commercial centers.
Today, SEG houses more than 600 brands, attracts over 100,000 visitors daily, and generated an estimated 12.5 billion yuan (approximately US$1.7 billion) in sales during 2025, ranking first among shopping malls in western China and eleventh nationwide, according to retail analytics firm Linkshop.
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According to excerpts of a letter published by The Epoch Times and attributed to Yan, his dispute with SEG management began about four years ago after mall auditors discovered that employees at his stores had split promotional shopping vouchers so customers could combine purchases and qualify for larger discounts. Yan wrote that the practice had long been common among tenants and tolerated by mall management. Vision Times has not independently verified the authenticity of the letter.
According to the letter, rather than issuing a warning, SEG imposed a contractual penalty totaling more than 11.456 million yuan. Yan argued the mall had no legal authority to levy such a penalty and wrote that the financial burden crippled his business, preventing it from paying suppliers and replenishing inventory. He said the pressure eventually forced him to shut down his stores.
“I could never accept it, and I still cannot,” Yan wrote in the letter addressed to SEG chairman Zhao Gui. “SEG doesn’t have the legal authority to impose fines like this. Announcing a penalty of more than 11 million yuan with no basis in law or regulation is simply not fair, and it isn’t lawful. … Mr. Zhao, I truly cannot get past this. It has weighed on me for so long, and so many times it has pushed me to the point of wanting to die right here at SEG. Does SEG really need to drive someone to death before this gets resolved?”
On June 30, one day before his death, Yan received notice that the mall would not renew his lease and required him to vacate his storefronts immediately.
Witnesses say the scene was cleared before police completed their investigation
Videos circulating online show employees, family members, and bystanders gathering outside the mall after Yan’s death, protesting what they described as management’s handling of the incident.
Witnesses and family members allege that mall staff removed Yan’s body and cleaned the area before police completed their on-site investigation, then reopened the shopping center for business roughly an hour later. Videos also show a large police presence dispersing demonstrators, and multiple social media posts claim several people were detained.
In China, deaths resulting from falls are generally treated as unnatural deaths requiring police to secure the scene and conduct a forensic examination before evidence is disturbed. Witnesses argued that reopening the mall so quickly was inconsistent with that practice.
On July 2, local authorities in Xi’an confirmed that a man fell to his death from the SEG International Shopping Mall at around 12:10 p.m. on July 1. They identified him as the operator of one of the mall’s tenant businesses. Police ruled out criminal involvement in the death.
They stated that a separate investigation into the commercial dispute between the mall management and the deceased was still ongoing. The official statement did not address allegations that mall staff had removed the body and cleaned the scene before police completed their on-site investigation, or that the mall resumed operations shortly afterward.
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A death that became a flashpoint
Yan’s death quickly became a major topic on Chinese social media, where many users directed their anger at SEG’s management.
“I’m truly shaken. My heart aches. So many people are saying he was a wonderful boss. How did you push someone to this point? How dare you,” one commenter wrote.
Another wrote: “The mall removed the body, cleaned the scene, and was back in business within an hour. Where is the humanity in that? Human life is being treated like it doesn’t matter.”
Others argued that the case reflected broader concerns about how some large commercial operators treat smaller businesses that lack bargaining power. Those comments reflect public opinion rather than established fact.
Yan’s family, speaking through a company finance officer, confirmed her relationship to the deceased but declined to discuss details of the case, saying the family remained in deep shock.
Authorities have not said whether allegations concerning the handling of the scene will be investigated separately. No public response from SEG International Shopping Center was available at the time of publication.
