HONG KONG/BEIJING: Shares in three companies with connections to troubled Chinese conglomerate Tomorrow Holdings Co Ltd slumped on Monday after regulators seized control of nine firms affiliated with the group.
Chinese financial regulators announced on Friday they had temporarily taken over brokerages, trust companies and insurers linked to the embattled group, amid a campaign to stem systemic financial risks in a slowing economy. Regulators took control of Baoshang Bank, controlled by Tomorrow Group, in May 2019 in China's first bank seizure in nearly two decades.
Meanwhile, Tomorrow's founder Xiao Jianhua was investigated more than three years ago amid a state-led crackdown on conglomerates, and has not been seen in public since 2017.
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