Editor’s note: A version of this post by Dou Shicong first appeared on Yicai Global.
Zhang Xiaolei, the actual controller and CEO of Qbao.com, the online finance platform also known as Qianbao (钱包网), has surrendered himself to the Nanjing police yesterday and relevant departments are conducting an investigation into the company’s allegedly illegal fund-raising activities. Zhang’s turning himself in also follows investor complaints about the website’s activities.
Nanjing police informed the public about Zhang’s voluntary surrender through its official social media account yesterday. Shanghai’s supervisory bodies included Qbao.com in the list of irregularly operated businesses in April as they were unable to locate its registration address. In August, some investors said they were unable to withdraw their money through the site and that the company’s Shanghai headquarters has been closed.
Founded in 2012, Qianbao.com combines the functions of online finance management and e-commerce platforms. Its users can register as a member of the website after paying RMB 100,000 ($15,250) and get some revenues by watching advertisements, completing questionnaires and carrying out other similar tasks.
Qbao.com also functions as an e-commerce website in which businesses can open online stores by paying a deposit of RMB 20,000.
Qianbao’s business also covers football. It sponsored and named a lower level league football club from Chengdu, the southwestern Sichuan province. It was also the jersey sponsor for Spain’s La Liga club Real Sociedad and the second league division club Rayo Vallecano de Madrid.