Yet another scam in China’s fund management sector leaves investors scrambling to recoup close to US$1 billion
- A Chinese online news portal reported that the company had failed to repay its investors since August 2018
- Office of Shanghai-based asset management group PGA Venture Partners was closed on Thursday
Shanghai-based asset management group PGA Venture Partners has suspended operations after failing to repay investors 6.6 billion yuan (US$967 million), the latest sign that the mainland’s finance sector is plagued by scams and frauds.
No employees showed up at the company’s office in Jiangchang Road, Jingan district, on Thursday. The Post could not reach the company or its officials by phone.
The company, also known as Yung Park Capital, said in a statement posted on the website that media reports about its operations were untrue and it reserved the right to take legal action.
Laohucaijing.com, a financial news portal, reported that PGA had failed to repay investors their money invested in wealth management products since August 2018.
The defaults resulted from the short-term wealth management funds the company offered to the public with guaranteed investment returns, laohucaijing said.
Two private equity fund managers, who declined to be identified, said that short-term wealth management products with guaranteed returns were not areas of PGA’s expertise.