China Said to Probe a Relative of Former Central Bank Governor

Chinese authorities are holding for questioning a relative of former central bank Governor Dai Xianglong as part of a probe into economic and financial matters, according to people familiar with the case.

Che Feng was placed under investigation earlier this week, said the people, who asked not to be identified because the probe hasn’t been made public. Che is Dai’s son-in-law, one of the people said.

China’s anti-graft agency is looking into Dai’s term as People’s Bank of China governor from 1995 to 2002, as well as his subsequent stints as mayor of the eastern port city of Tianjin and head of the National Council for Social Security Fund, Bloomberg reported on April 8. Dai left that last post job in 2013, according to the official Xinhua News Agency.

The Communist Party’s Central Commission for Discipline Inspection didn’t immediately respond to a faxed request for comment. A man who answered the phone at Che’s Hong Kong office hung up when asked questions.

Caixin magazine reported Che’s questioning earlier Thursday.

Che was identified by Digital Domain Holdings Ltd. Thursday as the indirect owner of Harmony Energy Ltd. after the shares of the former fell in Hong Kong on speculation about Che. Harmony holds convertible bonds in Digital Domain, the company said in a stock exchange filing.

While Digital Domain doesn’t comment on the status of holders of its securities, the company said “each of the executive directors and senior managers of the company have confirmed in person at the Hong Kong head office” that they haven’t been arrested. Che is neither a board member nor a senior manager, the company said.

Digital Domain, which owns a majority stake in the visual-effects producer for films such as Iron Man 3, fell 14 percent to close at HK$1.08. The stock has fallen 53 percent in the last three days.

Che spells his name as “Che Fung” in Hong Kong, where Cantonese spellings differ from Mandarin Chinese.

— With assistance by Keith Zhai, and Steven Yang

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