Police in Beijing and Shanghai detained 10 people on allegations of illegally raising billions of yuan through investment fund products backed by a web of closely held companies disguised as state owned, sources close to the matter told Caixin.
The individuals, detained in May, include legal representatives and senior executives of several companies affiliated with China Railway Supply Chain Group and Zhongtie Zhongji Construction Group, Caixin learned. Among them, a businessman called Cen Peng, sits at the heart of a web of companies that provided guarantees for each other in fundraising, business registration records show.
