Head of Chi­nese Firm Goes Miss­ing with $153 Mil­lion

The Economic Times - - Around The World -

Bei­jing: Chi­nese po­lice have launched a man­hunt for the owner of a pop­u­lar wealth man­age­ment com­pany who has gone miss­ing with about $153 mil­lion of in­vestors’ money.

Po­lice in the east­ern Chi­nese city of Hangzhou have started the search af­ter the con­glom­er­ate Wangzhou Group, par­ent of Wangzhou For­tune, con­firmed its chair­man Yang Weiguo’s dis­ap­pear­ance on Thurs­day. In­vestors in com­pany have been re­port­ing prob­lems with the firm’s cash flow since April 18. More than 2 0,0 0 0 peo­ple have in­vested a to­tal of about 2.2 bil­lion yuan ($ 33.8 mil­lion) in the com­pany, which has dozens of branches in ma­jor Chi­nese cities, Hangzhou po­lice told state-run Xinhua on Sun­day. Wangzhou Group also closed its shop­ping mall in Hangzhou af­ter the scan­dal emerged.

To re­pay in­vestors, the firm will re­trieve about a bil­lion yuan af­ter re­ceiv­ing prin­ci­pal and in­ter­est pay­ments from its lend­ing.

It will try to cover the 1.2 bil­lion yuan ($184 mil­lion) gap by sell­ing prop­er­ties, ac­cord­ing to a state­ment from the com­pany. Wangzhou Group has more than 200 sub­sidiaries in com­merce, au­to­mo­biles, health and wealth man­age­ment, in­clud­ing Wangzhou For­tune.

It em­ploys some 7,000 peo­ple in 70 cities.

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