Wealth management high-flyer in Shanghai crashes, execs arrested
21 Zhongjin Capital Management employees held on suspicion of "illegal fundraising"
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Shanghai
ZHONGJIN Capital Management made a splash in the past couple of years in Shanghai. The wealth management firm's imposing branch office on Shanghai's historic Bund pulled in many eager investors seeking the double-digit returns it promised on short-term financing products. It had a big profile, sponsoring popular Shanghai TV dating programme Saturday Date and signed up domestic billiards star Pan Xiaoting as a spokesman.
But last week, the image of riches and success that it had cultivated came crashing down. Police said they arrested 21 executives linked to Zhongjin Capital on April 5 on suspicion of "illegal fund-raising", a loosely defined term applied to irregular behaviour in China's energetic but opaque shadow banking sector.
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