Zhang Jin
China has arrested Zhang Jin, the owner of a Fortune 500 company, for illegal fundraising estimated at about $2.9 billion.
Mr. Zhang, the company’s founder, and chairman had been under pressure to refund the amount due to investors in wealth management products supported by the company.
The company’s sales managers from across China had assembled at the firm headquarters demanding that Mr. Zhang accept personal responsibility for late payments.
Cedar Development, the group’s clothes manufacturing unit, stated in an exchange filing on Tuesday that it was unable to contact Zhang Jin, who owns 70 percent through indirect holdings.
His detention is the most recent since Beijing has increased its crackdown on financial crimes in order to maintain social stability. It is also one of the most high-profile investigations and arrests of a tycoon since China lifted its Covid-19 restrictions in November last year.
The police have gathered pertinent material and tasked other authorities with conducting assessments and audits. They have also sealed Cedar’s assets
According to Forbes, Zhang Jin, 52, launched Cedar in Guangzhou in 1997 after a successful run at the stock market.
He graduated from Shenzhen University with a bachelor’s degree in economics and a master’s degree in management from Hong Kong Polytechnic University.
Prior to Mr. Zhang, another Chinese entrepreneur, related to former US President Donald Trump’s former political advisor Steve Bannon, was detained and accused in March of defrauding $1 billion from supporters of his anti-Beijing activities.
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