China Police Open Investigation Into CreditEase-Linked Companies

Beijing police opened an investigation into companies linked to Chinese financial technology group CreditEase, whose affiliated funds participated in financing for Circle and Figure.

The Beijing Municipal Public Security Bureau’s Chaoyang branch said Oct. 12 that the companies are being investigated for suspected criminal violations. Several suspects, including the entities’ actual controllers, have been placed under criminal measures, police said.

CreditEase built businesses in wealth management and investment after earlier operating peer-to-peer lending products. Its affiliated funds also participated in financing for Poko and Cashmere Wallet and invested as limited partners in traditional venture-capital funds.

CreditEase Asset Management (Singapore) Pte. Ltd., a Singapore affiliate, holds a license from the Monetary Authority of Singapore and conducts asset-management activities. The investigation places new scrutiny on the group’s investment links to crypto and fintech companies, including Circle and Figure.