Beijing police investigate major Chinese shadow bank Zhongzhi after it says it’s insolvent

By ZEN SOO
AP Business Writer

HONG KONG (AP) — Police are investigating a Chinese wealth management company owned by Zhongzhi Enterprise Group days after the firm told investors it was insolvent. The Beijing Public Security Bureau said in a statement published on the social media platform WeChat that they had taken “criminal enforcement measures” against several suspects to investigate and urged affected investors to lodge a complaint. The statement did not say what crimes the police were investigating. The investigation came after media reports last week that Zhongzhi had apologized to investors in a letter, saying it was severely insolvent with up to $64 billion in liabilities. That far exceeds its total assets of about $28 billion.