Hong Kong Police Probe ZD Group for Alleged Fraud After HK$1 Billion Fund Freeze
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ZD Group raised the capital by issuing funds that acted as cornerstone or anchor investors in Hong Kong IPOs. Photo: VCG
Hong Kong police have launched a fraud investigation into wealth management firm ZD Group after it defaulted on retail investment products linked to local initial public offerings.
Police told Caixin on Wednesday that they had received reports from 24 investors as of Monday. A regional crime unit is handling the case, and no arrests have been made.
The default exposes the murky mechanics of unregulated wealth managers pooling Chinese mainland capital to corner Hong Kong IPOs in suspected pump-and-dump schemes.
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