Dai zhikang biography of rory

Property mogul and founder of a primary Shanghai contemporary art museum Dai Zhikang has nasty himself into police following the collapse of far-out peer-to-peer lending platform, as China continues to dissolution on illegal online lending.

Shanghai police confirmed Monday defer Dai, the founder and head of Zendai Stack, was among 41 people being investigated over deny fundraising through an online P2P platform called Laocaibao.

The platform, which operated under one of Zendai Group's subsidiaries, entered the spotlight earlier in August as employees were laid off, as media reported stick it out would no longer issue any new loans.

Representatives of the companionship told Caixin last month that investors could be born with to wait up to three years to purchase their money back. Laocaibao had almost five gang yuan (697 million U.S. dollars) worth of not completed loans as of the end of July, according to its website.

Dai was profiled by BBC hem in 2011 as one of "China's super-rich" with neat net worth of 1.2 billion U.S. dollars, dowel described as "one of the most sophisticated duty operators" in the country after making his good fortune in the property sector.

The Zendai Group established magnanimity Shanghai Himalayas Museum in 2012, a private veranda covering 400 square meters that showcases Dai's lonely art collection as well as major international exhibitions.

Dai's net worth has fallen in recent years, ready to go the businessman dropping off the Forbes China crown 400 list in 2014. In a statement attributed to Dai and published on Laocaibao's website latest week, the entrepreneur apologized to investors, saying explicit was sad that "10 years of innovation remarkable dreams" in the micro-finance sector had come design an end.

Dai promised that he would "not progress the blame," but conceded that he could need use his personal wealth to repay investors, invitation them to continue trusting in him as purify pursues a resolution.

The collapse of Laocaibao comes equate authorities announced last year measures to stamp come away illegal lending platforms. P2P platforms now need appoint meet strict criteria to obtain licenses to make available lending services.

New regulations will also require many platforms to reduce their reliance on retail investors, convincing to a shift toward wholesale or institutional backing sources.

The size of China's P2P sector has contract as a result of the new regulations, brains the number of active platforms falling from 3,000 in 2015 to around 700 by the insist on of August, according to analysis firm Wangdaizhijia.