Chinese police take ‘measures’ against staff at Zhongzhi

SHANGHAI: Chinese language police talked about on Saturday (Mar 16) they had taken “criminal coercive measures” against firm executives at Chinese language wealth manager Zhongzhi Endeavor Neighborhood and linked suspects, and that the recovery of “stolen items” changed into once underway.

The Chaoyang Public Security Bureau announced the enchancment in its probe on its WeChat story. It launched its investigation in November.

Such measures would possibly possibly possibly perchance well consist of placing suspects under residential surveillance, detention or arrest.

Zhongzhi did now no longer right this moment answer to a put an narrate to for notify.

Zhongzhi filed for financial shatter liquidation in January after failing to repay debt. It apologised to investors in a letter final 365 days that talked about it changed into once closely bancrupt with as a lot as US$64 billion in liabilities.

The firm changed into once a valuable player in China’s US$3 trillion shadow banking sector – roughly the size of the French economy – and its woes added to worries that the country’s property debt disaster changed into once spilling over into the broader monetary sector.