BUSINESS

China’s Senior Living Scandal Deepens as Elder Care Giant Faces Fraud Probe

Published: May. 22, 2025 5:17 a.m. GMT+8

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Many eldercare models often function as thinly veiled financial schemes, capitalizing on China’s aging population and investors’ search for stable returns.

Authorities in Shanghai and Hangzhou have launched separate probes into Shanyuhai into the suspected illegal collection of public deposits. According to an official notice from the West Lake District’s special task force, both cities have taken criminal enforcement actions against company personnel, and local stations have begun registering complaints from investors.

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Shanghai and Hangzhou authorities are investigating Shanyuhai for suspected illegal collection of public deposits, detaining top executives and registering investor complaints.
Shanyuhai marketed high-end eldercare memberships with promised returns, but critics allege the model resembles a financial scheme; one investor deposited over 1 million yuan.
The company also operated a leasing platform with up to 12% yields, but payouts stopped in March; similar collapses have raised concerns about the “wellness living” sector.

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Who’s Who

Shanyuhai: Shanyuhai, founded in Shanghai, marketed itself as a high-end eldercare brand offering resort-style senior care through membership payments, but is now under criminal investigation in Shanghai and Hangzhou for suspected illegal deposit-taking. Its business also included tourism, leasing, and copper mining. Promising annual returns to investors, Shanyuhai’s payouts stopped in March 2025, sparking complaints and detentions of key executives amid wider concerns about financial schemes in the wellness sector.

Maizi Leasing: Maizi Leasing was operated by Shanyuhai’s Hangzhou-based affiliate. It allowed investors to “lease” electronics like smartphones in exchange for promised rental income, with advertised annual yields as high as 12%. However, payouts reportedly stopped in March, leading some investors to file police reports regarding the platform.

YanYang Group: YanYang Group is mentioned as a company that used similar financial models to Shanyuhai and collapsed, triggering investor panic and withdrawals. In December 2024, Shanghai police launched a criminal probe into YanYang (China) Vacation Chain Group and Jinke Holdings for suspected illegal fundraising, detaining several suspects, which fueled fears about the wellness living sector.

YanYang (China) Vacation Chain Group: According to the article, YanYang (China) Vacation Chain Group is a company that used business models similar to Shanyuhai. It collapsed and triggered investor panic and withdrawals. In December 2024, Shanghai police launched a criminal probe into YanYang for suspected illegal fundraising, detaining several suspects. Its collapse contributed to broader fears about the integrity of the “wellness living” sector in China.

Jinke Holdings: Jinke Holdings is mentioned in the article as being under formal criminal investigation by Shanghai police as of December 2024. The probe is for suspected illegal fundraising activities. Authorities have detained several suspects related to Jinke Holdings, alongside investigations into YanYang (China) Vacation Chain Group, contributing to wider concerns about the legitimacy of companies in the “wellness living” sector.

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What Happened When

December 2024：: Shanghai police formally launched a criminal probe into Jinke Holdings and YanYang (China) Vacation Chain Group for suspected illegal fundraising, detaining a number of suspects.

After the 2025 Lunar New Year：: Shanyuhai's liquidity issues surfaced, with many attributing the problems to the fallout from the YanYang Group’s collapse.

March 2025：: Payouts from Shanyuhai's Maizi Leasing platform reportedly stopped, prompting some investors to file police reports.

Mid-April 2025：: Shanyuhai’s de facto controller, Xiong Xiong, and other top executives were reportedly detained.

As of the publication date：: Authorities in Shanghai and Hangzhou have launched probes into Shanyuhai for suspected illegal collection of public deposits, taking criminal enforcement actions against company personnel and registering investor complaints.

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