HomeIndiaChinese billionaire arrested for illegal fundraising

Chinese billionaire arrested for illegal fundraising

The billionaire founder of the Chinese conglomerate Cedar Holdings, Zhang Jin, was arrested for the alleged illegal collection of funds estimated at about 20,000 million yuan (2,887 million dollars, 2,631 million euros), reports this Tuesday the Hong Kong newspaper South China Morning Post.

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(The Chinese yuan gains weight as an international reserve currency).

Police in the southeastern city of Guangdong opened an investigation into the illegal takeover of deposits by Guangdong Yuanfang Investment, a subsidiary of Cedar Holdings, and announced the arrest of the main suspect, whom they identified only as Zhang.

The local press also echoed a statement from another subsidiary of the group, which assured that it had lost contact with the billionaire, owner of 70% of the firm and that, according to the economic media Shanghai Securities News, would be the aforementioned person arrested.

Zhang, 52, founded Cedar Holdings in 1997 after making money on the stock market; in 2021, the conglomerate had revenues equivalent to about 33.7 billion dollars thanks to its businesses in areas such as supply chains of raw materials, chemicals, culture, tourism or smart community services (‘smart’).* 100015*

(‘King’ dollar: his economic influence and chances of being dethroned).

In fact, Cedar Holdings was ranked 359 that year on the list of the 500 largest companies worldwide compiled by the prestigious Fortune publication.

Despite to this, since 2022 both the company and its subsidiaries stopped paying interest on 20,000 million yuan in financial products that they had sold to investors in the last three years.

The Police claimed the employees of Cedar to help in the investigations and promised more lenient penalties for those who return illegally obtained funds, while ordering the freezing of assets related to the investigation.

According to the South China Morning Post, Zhang’s detention is that of a tycoon with the highest profile since Beijing began to dismantle the ‘zero covid’ policy and, with it, to reactivate the national economy, weighed down by the harsh restrictions and confinements imposed by the authorities.*100030 *

(China devalues ​​its currency against the dollar).

In recent months, the Chinese government has intensified its anti-corruption campaign in the financial sector, active for years and which had already resulted in the indictment of numerous officials of regulatory bodies and senior executives of companies.

In February, nerves began to surface in the sector after the disappearance of the well-known banker Bao Fan, who was later revealed to be collaborating in an investigation by the authorities.

In In March and April the news was the arrests of Liu Liange and Li Xiaopeng, former heads of the state-owned Bank of China and the public financial conglomerate Everbright Group, respectively.


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