Via Investing In Chinese Stocks blog,
An online lending platform Tang Xiaoseng was shut down by authorities over the weekend. Media warned about the company in 2016 and some have questioned whether it is a legitimate business because it offered extremely high returns to entice investors.
According to a 2016 report, the incentives could generate 75 percent annual returns.
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This is an online loan platform that claims to be a state-owned enterprise with a transaction volume of 75 billion yuan and a membership of over 10 million.
According to reports from various sources, online loan platform "Tang Xiaoxuan ran away", "parent company gold service was investigated", company legal person suspected "self surrender", employees "departed", investors could not cash out, and many other news breaking.
Investors cannot take cash
The fund monarch learned in some investors' exchange groups that some of them invested family pension money.
Others invested hoping to save up for a home.
One homebuyer is closing on a house and their downpayment is locked up:
The maximum amount invested by the investors who reported on the scene was nearly 3 million yuan, and small investors also invested tens of thousands of yuan. “This is the money I bought for the house. The deposit for the house was paid. There are days to expire. Now the money is not available.” An investor reluctantly said, “The day before yesterday put 50,000 yuan yesterday. With 10,000 yuan, it will be able to arrive quickly, but it is not enough to withdraw it today." Most investors' investments are due in the near future. This is why many investors have not mentioned it before.
The transaction volume exceeds 75.0 billion yuan
According to public information, Tang Xiaojun's operating company is Zibang Yuanda (Shanghai) Internet Financial Information Service Co., Ltd., which was established in October 2014 with a registered capital of RMB 260 million and legal person Tao Lei. The shareholders of Zibang Yuanda are Zhibang Jinfu Network Technology Group Co., Ltd. (with a shareholding ratio of 99%) and Zibang (Shanghai) Investment Management Co., Ltd. (with a shareholding of 1%).
In addition to Tang Xiaoxuan, Zibang Financial Services also has products and services such as immediate loans, Zibang Wealth, enjoyment of multiple periods, interest and interest, etc. Zhibang Jinfu is wholly-owned by Zibang (Shanghai) Investment Holdings Co., Ltd. The investment company also has two shareholders of natural persons, namely Tao Lei and Yu Yongsheng.
The specific amount of money involved by Tang Xiaoxuan is currently unknown, but it involves a wider range of investors. According to Tang Xiaoxuan's briefing, Tang Xiaoxuan went live on May 5, 2015. In less than a year, the turnover would have broken 10 billion yuan. According to the latest data, as of August 2017, Tang Xiaoxuan has...