Dec 06, 2018 08:15 AM

Chairman of Investment Firm Detained in P2P Site’s Collapse

Guangdong Macro Co., a household-appliance maker turned financial investment firm, confirmed Wednesday that its chairman has been detained in connection with the massive default of peer-to-peer lending site

Guangdong Macro said it has been unable to reach Chen Huan, its chairman.

Chen represented Hangzhou-based as as its chief lawyer on several occasions, media reports said. Chen had transferred to Guangdong Macro a major part of his 90% stake in investment company Zhejiang Hansheng Co.

In late October, police froze Zhejiang Hansheng’s accounts on suspicion of fundraising fraud.

In mid-October, founder Jin Zhongkao turned himself in to local police after the company failed to repay its investors. Jin is under investigation on suspicion of illegal fundraising, police said.

The company website showed that at raised over 86 billion yuan ($12.6 billion) from 9 million registered investors to invest in various projects since 2013. Chen had assumed a 90% stake in Zhejiang Hansheng in 2015.

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