August 30, 2018 / 11:42 AM / a month ago

Police investigate Shanghai Fuxing Group chairman for 'securities crimes'

SHANGHAI (Reuters) - The head of Shanghai Fuxing Group has been arrested in a foreign country and returned to China, according to Shanghai police investigating allegations of stock manipulation and other economic crimes.

The group’s chairman, Zhu Yidong, left China in June after Shanghai Fuxing failed to make 18 billion yuan (2.02 billion pounds) in payments due on private equity products, state broadcaster CCTV said on Thursday.

Shanghai Fuxing Group did not immediately respond to a request for comment.

The group operates in commercial real estate, asset management, medical and health, finance and rare metals.

Shanghai police said in a statement Zhu was returned to China on Wednesday.

“While the authorities were investigating Zhu’s suspected securities crimes, they also look at other suspected cases of economic crimes involving Zhu,” police said.

The CCTV report said Zhu together with another person had allegedly used 600 accounts to manipulate the share price of a listed firm.

Reporting by Engen Tham and Shanghai newsroom; Editing by Darren Schuettler

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