Business · Companies · 1 hr ago
Beijing police detain controllers after investment platforms miss repayments
Beijing police say they have opened a criminal investigation into companies linked to CreditEase over suspected illegal activities.
They have detained several company controllers, including a 53-year-old man surnamed Tang and a 51-year-old woman surnamed Zhao.
Tang Ning founded CreditEase and is the controlling shareholder of both CreditEase and Yiren Digital, a Chinese digital lender listed in the United States.
Yiren went public in New York in 2015 as a consumer lending business under CreditEase.
The police action follows a CreditEase announcement that two of its investment platforms had defaulted on products and stopped repayments on May 22.
Investors had been waiting more than four months for repayments.
CreditEase said it suspended payments because its inclusive finance and wealth management businesses had scaled down and underperformed.
The police notice does not say what happens next in the investigation.
Beijing police detained two controllers of companies associated with CreditEase after two related investment platforms failed to repay mainland investors for more than four months.
The Beijing Municipal Public Security Bureau said it had opened a criminal investigation into suspected illegal activities.
Those detained include a 53-year-old man surnamed Tang and a 51-year-old woman surnamed Zhao.
CreditEase announced a material default on products offered through the platforms and said it had suspended repayments on May 22.
Yiren Digital, a US-listed digital lender, was founded as CreditEase’s consumer loan arm.
- Who
- Beijing police detained two controllers, a man surnamed Tang and a woman surnamed Zhao.
- What
- Police opened a criminal investigation into companies associated with CreditEase over suspected illegal activities.
- When
- Police said the investigation had recently begun; the notice was issued on Monday.
- Where
- Beijing, China.
- Why
- The investigation concerns suspected illegal activities. The platforms had failed to repay mainland investors for more than four months.
This story does not have two clearly opposing sides.
a material default
fully suspend repayments
CreditEase was established.
Yiren went public on the New York Stock Exchange as a consumer loan arm of CreditEase.
CreditEase decided to fully suspend repayments on products offered through two asset management platforms.
CreditEase announced a material default on products offered through the platforms.
Beijing police said they had launched a criminal investigation and arrested controllers.
- Detained controller
- 53-year-old man surnamed Tang
- Detained controller
- 51-year-old woman surnamed Zhao
- Platforms
- Two related investment platforms
- Investor repayments
- Missed for more than four months
- Yiren listing
- New York Stock Exchange, 2015
- Repayment suspension
- May 22
Sources
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