THE Shenzhen Government has set up an investigative team to look into the collapse of an investment company which reportedly owes about 70 investors 3.8 million yuan (HK$3.48 million). Serious losses forced the firm, a joint venture between a Hong Kong company and a Shenzhen government enterprise, to shut up shop two months ago. Its Hong Kong manager has disappeared. On Wednesday, about 30 disgruntled investors petitioned the municipal Government, demanding help. The company's Chinese partner declined to comment on the collapse yesterday, saying the Government was now handling the matter. According to reports, the joint venture - set up two years ago with branch offices in Hong Kong, Hainan, Shantou, and Shaoguan - had been able to attract more than 12 million yuan from mainland investors with its rosy 'capital management plan' offering 24 per cent annual interest. But the firm was reported to be in serious financial trouble by last October because of large losses in foreign currency speculations. It had failed to pay interest to investors and the Hong Kong manager had gone missing. The company closed about two months ago. Investors have not received their money despite petitions to the provincial government and the Shenzhen National People's Congress.
