An investigation has been opened against Chinese brokerage Minzu Securities by Beijing’s securities regulator, after its Chief Executive Zhao Dajian mysteriously disappeared last Tuesday, September 22.
An initial analysis suggests that Mr. Dajian may possibly be detained, according to a recent stock filing. Indeed, Chinese state media reported earlier this month that a probe into Minzu executives had been undertaken, after allegations of embezzlement estimated at in excess of $314 million (2 billion yuan) last year.
Consequently, Minzu’s parent company, Founder Securities Co Ltd, had recently disclosed Mr. Dajian’s disappearance last Sunday in a stock exchange filing, which did little to clarify his present whereabouts.
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Prior to the disappearance, Mr. Dajian was serving as the honorary chairman of Minzu Securities and a Director of parent company, Founder Securities.
Minzu Securities is a Chinese brokerage that is majority-owned by property developer Beijing Zenith. The group has found itself embattled in string of legal disputes after it was acquired by Founder Securities back in 2014 – Zenith has sued Founder alleging financial impropriety.
According to a recently released statement from Founder Securities regarding the disappearance of Mr. Dajian, “The company will continue to coordinate efforts by various parties, including China Minzu Securities, to get in touch with Zhao Dajian, check on the relevant situation and make disclosures in a timely manner.”