09 Jul 2019
Noah Holdings Ltd., one of China’s largest wealth managers, levied accusations of fraud against Camsing International Holding Ltd., the Hong Kong-listed company that said last week its chairman had been detained by police.
The asset manager has filed a lawsuit and reported Camsing to regulators in relation to a 3.4 billion yuan ($490 million) asset management product that’s in danger of default, Wang Jingbo, Noah’s chief executive officer and co-founder, said in an internal memo on Monday that was obtained by Bloomberg News. The product’s duration will be extended by as much as one year to ensure repayment, Wang said in the memo, the contents of which were confirmed by a spokeswoman.
Camsing, a conglomerate with businesses spanning entertainment and health care, saw its stock plunge 80% in Hong Kong on Monday after the company said Chairman Lo Ching was being held in criminal custody by the Shanghai police. Noah’s shares fell 20% in New York after it said some credit funds managed by one of its affiliates provided “supply chain financing involving third-party companies related to Camsing.”
A representative who answered the phone at Camsing’s office in Hong Kong declined to comment. The stock was up 3.3% at 10:15 a.m. local time on Tuesday.
Read more at Bloomberg News
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