Business
China Initiates Criminal Investigation into Evergrande-Linked Hywin for Illegal Fundraising: Key Suspects Detained Amidst Investor Protection Efforts
China has initiated a criminal investigation into Hywin, a wealth manager connected to Evergrande, over allegations of unlawful fundraising. Fengxian's law enforcement agency announced that two individuals with the last names Han and Wang have been taken into custody in relation to these illegal fundraising activities.
The law enforcement agency in Fengxian district, located in the south, announced on Wednesday that it has enforced strict actions against a minimum of three staff members from Hywin. They further stated that they would broaden the probe to safeguard the interests of investors.
The law enforcement authorities are gathering proof of illicit activities from every possible source, working tirelessly to intensify their probes to recover stolen assets and ensure maximum protection for investors, according to the bureau. Two individuals, known only by their last names Han and Wang, have been taken into custody on charges of unauthorized fundraising, though the exact amount involved remains undisclosed.
In mainland China, if the police ask for additional assistance in criminal cases, prosecutors have the authority to get involved in the probe.
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Furious demonstration at China Evergrande's main office as the real estate behemoth grapples with cash flow issues
The clampdown is happening nine months after Hywin couldn't reimburse its investors when several of its wealth management offerings came to maturity. This triggered a faith crisis, with thousands of savers expressing concern over the security of its investments in real estate projects, following the country's housing market collapse.
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