Police in Shanghai have launched an investigation into Hywin Wealth over alleged involvement in illegal fundraising.
A criminal investigation into Hywin Wealth Management for alleged involvement in illegal fundraising has been launched, according to a statement by Shanghai police. The case thus far involves two suspects – surnamed Han and Wang – with the aim of the probe to recover losses and protect investors’ interest.
Hywin Wealth has been in the spotlight over delayed payments on some of the wealth management products (WMP) it distributed. Once China’s largest distributor of real estate WMPs, its troubles have placed severe pressure on the shares of US-listed Hywin Holdings, which cut links with the wealth unit and was renamed Santech Holdings earlier this year.
In 2021, Liechtenstein-based VP Bank acquired a 3.4 percent stake in Hywin Holdings, which it called its strategic partner.
