A Chinese businessman with family links to the eldest son of jailed former security czar Zhou Yongkang has been detained by police investigating the collapse of Sichuan Trust, which was taken over by the provincial government and banking regulator last year amid concerns it couldn't repay 25.3 billion yuan ($3.9 billion) of investors' money.
Liu Canglong, who controls companies with a combined 54.2% stake in the troubled trust firm, is being held by the public security bureau in Chengdu, the capital of Sichuan Province, on suspicion of misappropriating trust funds, Sichuan Hongda said in a brief statement to the Shanghai Stock Exchange on Monday. Liu is the actual controller of Sichuan Hongda, although Liu is not a director and doesn't hold any official position in the company, according to the statement.
