Police Probe HHSC Capital As Company Declares Insolvency

Shanghai HHSC Capital Management Co. Ltd. said Tuesday that it and its affiliates are severely insolvent and cannot continue operations. The company pledged to maintain open lines of communication with investors while exploring ways to dispose of its assets.

The investment company and its affiliates have since August failed to repay about 30 billion yuan ($4.15 billion) of wealth management products. Many of these were sold illegally and had no underlying assets. That month, the company chairman Lin Qiang disappeared in mysterious circumstances while in Hong Kong.