Former Deputy GM of ST Busen Arrested After Fleeing to Vietnam, Closure Nears in 1.2 Billion Yuan Missing Deposit Case (AI Translation)
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文｜财新 岳跃
By Yue Yue, Caixin
【金融我闻/岳跃】私募机构浙江优策投资管理有限公司（下称“优策投资”）在2024年夏天爆雷，当事人纷纷外逃，近期落网，这是否意味着投资者有望追赃挽损？
[Finance Insider/Yue Yue] Private equity fund manager Zhejiang Youce Investment Management Co., Ltd. (hereinafter “Youce Investment”) collapsed in the summer of 2024, with those involved fleeing abroad and recently being apprehended. Does this mean investors now stand a chance of recovering their lost assets?
据财新此前报道，在优策投资一案中，370名投资者共计约12.38亿元的资金，最终投向都是长安银行宝鸡金陵支行和宝鸡科技支行的协议存款；而这些协议存款账户，蹊跷地开通了网银转账功能，“资金一进来就马上转出去，长达四年时间”；投资者此前收到的余额明细表、对账单均被指伪造，最后发现实际余额仅剩8万多元（参见财新我闻2024年8月16日《长安银行12亿协议存款离奇失踪 私募基金被指挪用举牌上市公司》）。
According to previous reports by Caixin, in the case involving Youce Investment, a total of approximately 1.238 billion yuan contributed by 370 investors ultimately ended up as agreement deposits at two branches of Chang’an Bank: Baoji Jinling Sub-branch and Baoji Keji Sub-branch. Strikingly, these agreement deposit accounts had online banking transfer functions enabled, allowing funds to be immediately transferred out as soon as deposits were made, a practice that persisted for as long as four years. The account balance statements and reconciliations previously provided to investors were alleged to have been forged; in the end, it was discovered that the actual remaining balance was just over 80,000 yuan (see Caixin WeWen, August 16, 2024, “12 Billion Yuan in Chang’an Bank Agreement Deposits Mysteriously Disappear: Private Equity Fund Accused of Misappropriating Funds to Buy Shares in Public Companies”).
此外，该案中另有30亿元的“债权类投资产品”爆雷，且底层资产多为长安银行宝鸡分行和支行的企业不良贷款资产包（参见财新我闻2024年8月29日《12亿失踪后再曝30亿大雷 长安银行不良贷款是如何被散户接盘》）。
In addition, another RMB 3 billion ($413 million) worth of “credit-based investment products” in this case have defaulted, with most of the underlying assets comprising packages of non-performing corporate loans from the Baoji branch and sub-branches of Chang'an Bank (see Caixin's report, August 29, 2024, “After RMB 1.2 Billion Vanishes, Another RMB 3 Billion Blow: How Retail Investors Ended Up with Chang'an Bank's Non-Performing Loans”).
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- Zhejiang Youce Investment collapsed in 2024, misdirecting about 1.238 billion yuan from 370 investors and leaving only 80,000 yuan in bank accounts; involved individuals fled but have largely been apprehended, including Ai Shaoyuan in Vietnam.
- An additional 3 billion yuan in debt-type products also defaulted; most underlying assets were non-performing loans from Baoji branches of Chang'an Bank.
- Responsibility for fund losses remains disputed among Youce, Chang'an Bank, and Haitong Securities, while regulators cite inadequate internal controls but no criminal wrongdoing by the bank.
The collapse of Zhejiang Youce Investment Management Co., Ltd. (“Youce Investment”), a private equity fund manager, in the summer of 2024 has triggered widespread financial and legal turmoil in China. The collapse resulted in the disappearance of approximately 1.238 billion yuan from 370 investors, deposited in agreement accounts at two Chang’an Bank branches in Baoji, Shaanxi province. These accounts had online banking transfer capabilities enabled, allowing funds to be swiftly moved out over a period of four years. Alarmingly, investors were presented with forged account statements, with the real remaining balance found to be just over 80,000 yuan[para. 1]. Furthermore, the default of 3 billion yuan ($413 million) worth of “credit-based investment products”—largely backed by non-performing corporate loans from Chang’an Bank—has intensified losses for retail investors[para. 1].
Investigations revealed that some of the misappropriated funds had flowed to the Xianhua Group, directed by Baoji native Ai Shaoyuan, who used the capital to acquire a stake in public company ST Busen and serve as its deputy general manager and CFO. Ai resigned from these positions in early 2025, raising suspicions among investors. He was subsequently apprehended by Vietnamese authorities in April 2025 and returned to China after being placed on a wanted list for fraudulent misappropriation by the Dongxing Public Security Bureau in Guangxi[para. 1].
The web of relationships surrounding the case is extensive. Ai Shaoyuan collaborated closely with Huang Wei, main controller of Xiushi Group—the sales platform for Youce funds—and both had significant business dealings with the aforementioned bank branches and Xianhua Holdings. Multiple implicated individuals, including Xiushi Group finance chief Liu Kaige and Youce general manager Jiao Jian, are now in police custody. Meanwhile, Huang Wei fled to Japan but was reportedly also detained by Chinese police[para. 1].
Internal management changes occurred at the Baoji branch of Chang’an Bank, with its former president Sun Junrang—rumored to be closely allied with Ai—dismissed and under investigation alongside other branch officials. Investors had expected generous returns of 4.5%-5.5% from the funds, but police later determined that actual bank interest rates were only around 2%, with returns subsidized by further infusions rather than legitimate investment gains. Consortium investigations revealed funds being unlawfully funneled through related corporate accounts, purchases of distressed assets at inflated prices, and widespread breaches of operational protocols[para. 2].
Despite evidence of internal controls weaknesses at Chang’an Bank and possible contract breaches regarding the illicit activation of online banking services, both local regulators and the bank itself have so far denied criminal wrongdoing. Communication breakdowns and disputes remain between Chang’an Bank and Haitong Securities (the fund custodian), each denying responsibility for improperly enabling online transfers. The regulatory opinion highlighted only “internal control deficiencies” at the bank, and police announced in April 2025 that no criminal case would be pursued against the involved Chang’an Bank branches[para. 3].
Investors are divided between demanding restitution of their lost principal by Chang’an Bank and hoping for recovery of embezzled funds following the arrests. As the investigation continues, the Chinese authorities must clarify issues of bank oversight, investor protection, and legal accountability in China’s shadow banking sector, highlighted by this high-profile scandal[para. 3].
- Zhejiang Youce Investment Management Co., Ltd.
- Zhejiang Youce Investment Management Co., Ltd. is a private fund manager that experienced a major financial scandal in 2024. The company raised funds from investors, which were allegedly misappropriated into long-term deposits at Chang'an Bank branches, with most funds subsequently transferred elsewhere. Key executives fled abroad, but were later apprehended. The incident involved falsified documents, a loss of over 1.2 billion yuan, and connections with related asset management and capital operations.
- Chang'an Bank
- Chang'an Bank, specifically its Baoji Jinling and Baoji Keji branches, was involved in a scandal where about 1.238 billion yuan in private fund agreement deposits were diverted using accounts with online transfer functions. Several branch managers were investigated or replaced. Although financial regulators found internal control issues, they did not confirm criminal misconduct by the bank itself. The funds’ disappearance is linked to cooperation with implicated private funds and local business figures.
- ST Busen
- ST Busen (002569.SZ) is a listed company that became involved in the Zhejiang Youce Investment case. Ai Shaoyuan, a central figure in the scandal, became ST Busen's deputy general manager and acting CFO through capital operations. Some misappropriated funds were allegedly used to acquire shares in ST Busen. Ai resigned from the company in February 2025 after suspicions about his involvement.
- Xianhua Holdings
- Xianhua Holdings is a private company based in Baoji, with businesses in real estate, healthcare, and agriculture. It was previously controlled by Huang Wei’s company before being transferred to Ai Shaoyuan, who later became involved in the ST Busen case. Part of the missing funds from the Youce Investment case was reportedly used to support Xianhua Holdings’ various capital operations.
- Shanghai Taohuayuan Investment Consulting Co., Ltd.
- Shanghai Taohuayuan Investment Consulting Co., Ltd. was the controlling shareholder of Xianhua Holdings before November 2019. It is 90% owned by Huang Wei, who is identified as the actual owner behind Youce Investment. After transferring Xianhua Holdings to Ai Shaoyuan, Huang Wei also served as the financial director of Xianhua Holdings.
- Xipu Data
- Xipu Data is an internet advertising company founded by Aishao Yuan in 2008. It was briefly listed on the National Equities Exchange and Quotations (NEEQ, also known as the New Third Board) under the code 835687.OC, but its listing was terminated in 2018.
- Baoji Fenghuangling Equity Investment Management Co., Ltd.
- Baoji Fenghuangling Equity Investment Management Co., Ltd. is one of three company accounts to which the suspicious funds from Youce Investment’s agreement deposits in Chang’an Bank were transferred. The company has close connections with Xianhua Holdings and Ai Shaoyuan, key figures in the fund misappropriation case. Its involvement is part of the investigation into the disappearance of over 1.2 billion yuan in investor funds.
- Baoji Yuanda Asset Management Co., Ltd.
- Baoji Yuanda Asset Management Co., Ltd. is one of three companies to which funds from the Zhejiang Youce private fund scandal were transferred after being deposited in Chang'an Bank's Baoji branches. Yuanda Asset was closely linked to Xianhua Holdings and Ai Shaoyuan, and was involved in the acquisition of non-performing loan portfolios from Chang'an Bank’s Baoji branches, often at face value, as part of 30 billion yuan in debt investment products that later defaulted.
- Xi'an Changrong Investment Management Co., Ltd.
- According to the article, Xi'an Changrong Investment Management Co., Ltd. is one of three company accounts that received major fund transfers after the suspicious activation of online banking for the agreement deposit accounts at Chang’an Bank. This company is closely connected with Xianhua Holdings and Ai Shaoyuan, both of whom are implicated in the fund misappropriation and related operations.
- Xiushi Group
- Xiushi Group is a Beijing-based wealth management sales institution involved in selling Youce Fund products. Its actual controller is Huang Wei, who is from Baoji. Xiushi Group played a key role in raising funds for Youce Investment, and many investors purchased the problematic funds through Xiushi. The group’s executives have been investigated by Beijing police for allegedly illegally absorbing public deposits, and Huang Wei was recently detained by Chinese authorities.
- Shaanxi Xifeng Investment
- Shaanxi Xifeng Investment is mentioned as a company where Huang Wei once served as president. Huang Wei also had connections with Xi Feng Liquor (Xifengjiu), attending investment activities with its then-chairman Qin Benping. This background was cited by sales staff to reassure investors about the safety and credibility of investment products linked to Youce Investment.
- Haitong Securities
- Haitong Securities served as the custodian for the UCE private fund involved in the case. The company stated it did not have the authority to activate online banking transfer functions and contested the bank's claim, requesting evidence for such authorization. Haitong insisted that any account changes should require its explicit consent, highlighting inconsistencies between materials held by Haitong and those used by the bank when activating online banking.
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