Glitch in Rongsheng Rescue Sheds Light on Shady Investor

(Beijing) – The detention by police of a capital market veteran has interrupted the restructuring plans of China's largest private shipbuilder and shed light on the tricks used by an investor who seems to have always profited from distressed companies.

In early March, debt-ridden shipbuilder Rongsheng Heavy Industries Group Holdings cancelled a planned 3 billion yuan warrant issuance to the private equity firm Kingwin Victory Investment Ltd.