Chinese Authorities Detain Yiren Digital Controller Following Investment Platform Defaults
Police in China have detained a controller of Yiren Digital, a US-listed digital lender, after two associated investment platforms failed to repay mainland investors for more than four months. The Beijing Municipal Public Security Bureau initiated a criminal investigation into companies linked to CreditEase.
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According to the South China Morning Post, police in China have taken into custody a controller of Yiren Digital, a Chinese digital lender that is listed on the US stock exchange, subsequent to two related investment platforms failing to return funds to mainland investors for over four months.
The Beijing Municipal Public Security Bureau issued a notice on Monday stating that it had recently commenced an official criminal investigation into companies connected to CreditEase regarding suspected illegal conduct. The arrests included a 53-year-old male with the surname Tang and a 51-year-old female surnamed Zhao.
Yiren became publicly traded on the New York Stock Exchange in 2015, serving as the consumer loan division of CreditEase, which was founded in 2006. Tang Ning is identified as the founder and controlling shareholder for both CreditEase and Yiren.
The notice of the investigation followed one day after CreditEase declared a "material default" concerning fixed-income-like products on two of its asset management platforms, after making the determination to completely halt repayments on those products on May 22. The company stated that this decision was due to the contraction and poor performance of its inclusive finance and wealth management operations.
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