Beijing police have opened a criminal investigation into companies linked to CreditEase, according to a report cited by TechFlowPost on Oct. 12. The Chaoyang branch of the Beijing Municipal Public Security Bureau said the firms are suspected of illegal and criminal activity, and that multiple suspects, including actual controllers surnamed Tang and Zhao, have been placed under criminal coercive measures. The report also said CreditEase Group had fully halted redemptions for quasi-fixed-income products on May 22 and sent an apology letter to relevant investors on Oct. 11. In that letter, the company said several business lines had suffered heavy losses, the market-based disposal value of assets was low, and a preliminary review found the group might be insolvent and facing a sizable repayment gap. Public fundraising records show CreditEase and its affiliated investment funds had previously participated in financing rounds for Circle, Figure, Matrixport and Poko. The company also has a Singapore entity, CreditEase Asset Management (Singapore) Pte. Ltd., which holds a Capital Markets Services licence issued by the Monetary Authority of Singapore for fund management.
Companies linked to CreditEase are under criminal investigation, according to a report cited by TechFlowPost on Oct. 12.
21st Century Business Herald reported that the Chaoyang branch of the Beijing Municipal Public Security Bureau said it had recently opened a case into CreditEase-related companies on suspicion of illegal and criminal activity. Multiple suspects, including actual controllers identified by the surnames Tang and Zhao, have been placed under criminal coercive measures.
The report said CreditEase Group had fully suspended redemptions for quasi-fixed-income products on May 22. On Oct. 11, it sent an apology letter to relevant investors. According to CreditEase, several of the group’s businesses had posted large losses, the market-based disposal value of its assets was relatively low, and a preliminary review found the group might be insolvent and facing a significant repayment shortfall.
Public fundraising records show that CreditEase and its affiliated investment funds had previously participated in financing rounds involving Circle, Figure, Matrixport and Poko.
CreditEase also operates CreditEase Asset Management (Singapore) Pte. Ltd. in Singapore. The entity holds a Capital Markets Services licence issued by the Monetary Authority of Singapore, allowing it to conduct fund management business.
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