Fugitive Financier Tried in Shanghai Over $14 Billion Ponzi Scheme
Listen to the full version
More than a month after his extradition to China, Lin Qiang — fugitive financier and key figure behind the collapsed investment firm Shanghai HHSC Capital Management Co. Ltd. — stood trial in Shanghai, accused of orchestrating a sweeping fundraising scam that left a 30 billion yuan ($4.2 billion) financial black hole.
The two-day trial, held from Nov. 19 to Nov. 20 at the Shanghai No. 2 Intermediate People’s Court, saw prosecutors bring charges against Lin, seven associates, and three affiliated companies for fundraising fraud, illegal deposit-taking, and money laundering.
According to the prosecution, between January 2019 and August 2023, Lin and his co-defendants illicitly raised over 100 billion yuan from investors across China. The case underscores persistent risks in the country’s loosely regulated wealth management sector, where firms have exploited loopholes and manipulated regulatory filings to build large-scale Ponzi schemes.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Lin Qiang, extradited to China, stood trial for leading a 100 billion yuan ($14 billion) fundraising scam linked to HHSC Capital, leaving a 30 billion yuan shortfall.
- Prosecutors charged Lin, seven associates, and three firms with fundraising fraud, illegal deposit-taking, and money laundering, covering activities from 2019 to 2023.
- Lin fled China in August 2023, was arrested in Indonesia in October 2024, and the verdict is pending after a two-day Shanghai court trial.
- Shanghai HHSC Capital Management Co. Ltd.
- Shanghai HHSC Capital Management Co. Ltd. was an investment firm at the center of a 30 billion yuan ($4.2 billion) fundraising scam. Its key figure, Lin Qiang, continued a Ponzi scheme after taking control in 2018, leading to the massive shortfall. The company illicitly raised over 100 billion yuan from investors through fabricated businesses and deceptive practices.
- HeheAsset Management (Shanghai) Co. Ltd.
- Hehe Asset Management (Shanghai) Co. Ltd. was a core entity of the investment firm Shanghai HHSC Capital Management Co. Ltd. It was sanctioned in June 2018 for serious violations, including offering guaranteed minimum returns. This company was involved in a large-scale fundraising scam orchestrated by Lin Qiang.
- 2018：
- Lin Qiang assumed control of HHSC after its former controller Zhao Dalu fled overseas, when the company already had a deficit of about 10 billion yuan.
- June 2018：
- HeheAsset Management (Shanghai) Co. Ltd. was sanctioned by the Asset Management Association for serious violations.
- January 2019 - August 2023：
- Lin and his co-defendants illicitly raised over 100 billion yuan from investors across China.
- August 2023：
- Lin Qiang fled China.
- October 2024：
- Lin Qiang was arrested in Indonesia under an Interpol Red Notice.
- After October 2024：
- Lin Qiang was extradited to China.
- Nov. 19, 2025 - Nov. 20, 2025：
- Lin Qiang and associates stood trial at the Shanghai No. 2 Intermediate People’s Court.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新