China Probes $1.2 Billion Wealth Firm Hywin Over Fundraising
- ‘Coercive measures’ taken against multiple suspects: police
- Probe comes nine months after Hywin vowed to fix payment delay
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China has opened a criminal investigation into Hywin Wealth Management Co. for alleged involvement in illegal fundraising, with “coercive measures” taken against multiple suspects at the firm, according to Shanghai police.
The police didn’t specify on the measures in a statement that it released, but in China, “criminal coercive measures” could typically take the form of seizure or detention. The probe into Hywin, once the nation’s largest distributor of real estate wealth management products, comes nine months after it pledged to address delayed payments on some investment offerings it had distributed.