Hywin Wealth Under Investigation for Illegal Fundraising Linked to China Evergrande

Hywin Wealth's Legal Troubles

Hywin Wealth, a prominent wealth management firm with connections to the embattled China Evergrande Group, is under investigation by the public security bureau in Fengxian district. Authorities have implemented coercive measures against multiple employees amid allegations of illegal fundraising tied to various property projects.

Details of the Investigation

As part of the ongoing investigation, at least three individuals from Hywin have been taken by the Shanghai police. The bureau has promised to take comprehensive actions to gather criminal evidence that would help recover losses and safeguard investors’ interests.

• Hywin previously failed to repay investors, leading to a crisis of confidence.
• The company was once the largest distributor of real estate wealth management products.
• Criminal investigations suggest possible fraud in fundraising.

Impact on the Wealth Management Sector

This matter raises significant concerns over the integrity of the shadow banking system in China, highlighting challenges faced by wealth management firms as they navigate a turbulent economic landscape.