A billionaire property tycoon and prominent art collector has surrendered himself to police in Shanghai as Chinese authorities intensify a crackdown on the Rmb667bn ($93bn) P2P industry.
Dai Zhikang, chairman of Zendai Group and the founder of a large art museum in Shanghai, handed himself over to police in the Chinese financial hub two weeks after his P2P lending unit Laocaibao ceased operations, according to a statement from police in Shanghai on Sunday.
The police statement said Zendai Group’s legal representative and several other executives had surrendered to police and that the company’s P2P lending unit was suspected of illegal fundraising. Company representatives had admitted to embezzling funds, according to the statement, and had no means of repaying investors.