Hong Kong-listed Haichang Ocean Park's boss detained in China amid shadow banking probe

Police successful eastbound China's Zhejiang state person detained Yu Faxiang, the president of Hong Kong-listed Haichang Ocean Park, arsenic authorities analyse alleged mismanagement pursuing defaults connected multibillion-yuan wealthiness products issued by a steadfast nether his control.

It is the latest crackdown connected mainland China's shadiness banking system, continuing years of authorities efforts to cleanable up the sector.

Police person imposed "criminal compulsory measures" against Yu and were conducting a probe into his alleged wrongdoings, Haichang, mainland China's largest marine taxable parkland operator, said successful an speech filing connected Tuesday, adding that it had been notified by Yu's household astir the matter.

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The improvement comes conscionable six months aft Sunriver Holding Group, which is controlled by the billionaire, spent HK$2.3 cardinal (US$295.7 million) to bargain a 39 per cent involvement successful Haichang.

Yu Faxiang, the president of Hong Kong-listed Haichang Ocean Park, has been arrested connected the mainland. Photo: Xinhua alt=Yu Faxiang, the president of Hong Kong-listed Haichang Ocean Park, has been arrested connected the mainland. Photo: Xinhua>

Sunriver Holding besides has 2 Shanghai-listed subsidiaries - Sunriver Culture Tourism and Anhui Gourgen Traffic Construction. Both companies released statements confirming Yu's detention.

Earlier this month, a redemption situation affected thousands of investors who bought wealthiness absorption products linked to a existent property task operated by Sunriver Holding.

On December 7, the 3 listed firms said successful speech filings that determination had been delays successful the repayment of the wealthiness absorption products, and said Yu would carnivore the related liabilities.

Shares of Haichang, which owns Shanghai Haichang Ocean Park, slumped 6.3 per cent to HK$0.45 connected Tuesday morning. Sunriver Culture shed 2.8 per cent to 5.91 yuan and Gourgen Traffic mislaid 4.6 per cent to 7.60 yuan.

Wealth absorption products, a large portion of China's shadiness banking system, are targeted astatine depositors with an appetite for debased risks, with the funds from these products typically invested successful fixed-income and wealth marketplace instruments.

A ample information of the products was sold via peer-to-peer (P2P) lending platforms connected the mainland.

Data from Zhejin Asset Operation, a P2P platform, showed astir 10 cardinal yuan of borrowings by Sunriver Holding had matured this month.