Shanghai Land receivers detail generous loans to subsidiaries The brother-in-law and nephew of Chau Ching-ngai have been taken into custody as mainland authorities continue their investigation into the detained Shanghai property tycoon, according to a report. Mao Heping - brother of Chau's wife Mo Yuk-ping - and Chau's nephew, Zhou Weiyan, were directors of companies linked to Chau's unlisted flagship company, Shanghai Nongkai Development (Group), the China Securities Journal reported yesterday. Chau is still under investigation in Shanghai for questionable loans, tax fraud and a land dispute, while Mo was arrested - and later released on HK$10 million bail - by the Independent Commission Against Corruption in Hong Kong for conspiracy to defraud. Other Nongkai group officials were also being investigated, the paper said. Meanwhile, the court-appointed receivers for Chau's Hong Kong-listed Shanghai Land Holdings, Stephen Liu Yiu-keung and Kenneth Yeo Boon Ann, revealed details about 650 million yuan (HK$611 million) borrowed by two of the company's Shanghai subsidiaries - Shanghai Hongxin Real Estate Development and Shanghai Yihe Longbai Hotel . Shanghai Land was put into receivership last month. The subsidiaries took out two loans of 300 and 350 million yuan from Shanghai Rural Credit Co-operatives Union, and put up their own assets - including land and a hotel - as security. About 300 million yuan was lent to a mainland firm, Shanghai Huatip Trading Co, on May 13 and was still outstanding as of last week, the receivers said. They added that Shanghai Huatip could be part of the Nongkai Group, as 'it appears that two individuals who claim to be employees of the Nongkai Group may be shareholders of Shanghai Huatip'. Shanghai Yihe Longbai Hotel deposited all but three million of its 350 million yuan loan at Fuyou Securities. But receivers said Fuyou Securities did not disclose 'the current whereabouts' of the 347 million yuan deposit. Chau had controlled the Shanghai-based brokerage until last month, when Citic Securities took it over at the government's request. The receivers questioned the validity of the two loans, which were borrowed without the approval of Shanghai Land's board, and said they would initiate legal proceedings to recover the money. The receivers also said they had secured Shanghai Land's HK$1.2 billion cash and bank balances - not including those of its subsidiaries - and that Shanghai Land's liabilities were less than HK$1 million. 'No winding-up petition has been filed against the company and [it] is therefore not in liquidation,'' the receivers added.