HNA Units Under Investigation Linked to Embezzlement, Financial Misconduct, Sources Say

Two listed companies under HNA Group Co. Ltd. have revealed that they are subject to an investigation that sources with knowledge of the matter said may be linked to allegations that shareholders embezzled company funds and that both companies illicitly provided guarantees for shareholders’ debt.

The investigations mark the government’s latest move in untangling the risks posed by the formerly free-wheeling financial conglomerate that is now going through bankruptcy restructuring.