Sina news cited Shenzhen People’s Procuratorate public news that 18 people are suspected of fund-raising fraud and misusing clients’ deposits. Three names are among the suspects, including the Chairman of Hongling Venture Capital Zhou Shiping, Hu Yufang, and Xiang Xu.

They obtained credit and unlawfully raised funds from 516 thousand anonymous participants using principle and interest guarantees and big profits.

The investigating authorities found that Zhou Shiping, Hu Yufang, and Xiang Xu used the Hongling Venture Capital, Investment Treasure online lending platforms, and the Hongling Capital offline wealth management project to raise an illegal fund of 139.5 billion yuan (21.89 billion dollars).

Over one hundred thousand participants lost 16.388 billion yuan (2.57 billion dollars) in principal by the scheme.

The funds were used to repay principal and interest, acquire listed companies, and buy and sell securities and futures contracts. Some are used to invest in equity or lend to foreign investors.

In addition, Zhou Shiping also utilized some of the funds to buy real estate and pay off personal debts.

The case has recently been transferred to the Shenzhen Municipal Public Security Bureau, Futian Branch, for review and prosecution.

According to Sohu, police took Zhou Shiping into criminal compulsory measures in July 2021. Shenzhen Futian police then issued a notice that Zhou Shiping and 74 others were arrested on suspicion of capital raising fraud and illegal public deposit-taking.

In 2019, Zhou Shiping suddenly announced the liquidation of Hongling Venture Capital. In 2020, he said that the company would face challenges in completing its three-year retirement plan on time.

He added that the task of disposing of assets would be completed at about 80%.
The corporation, however, did not meet the target for the first year of repayment.
As a result, the Futian Branch of the Shenzhen Public Security Bureau conducted criminal compulsory measures in September 2021, in accordance with the law on Zhou Shipping and other relevant personnel.

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