Core Viewpoint - The "Xiangyuan System" is facing a liquidity crisis due to over 10 billion yuan in financial products that have defaulted on payments, leading to the criminal investigation of Zhejiang businessman Yu Faxiang [1][6][8]. Group 1: Company Overview - Yu Faxiang, with a net worth exceeding 10 billion yuan, has been placed under criminal coercive measures by the Shaoxing Public Security Bureau due to suspected criminal activities [2][3]. - He controls three listed companies: Jiaojian Co., Xiangyuan Cultural Tourism, and Ocean Park Haichang, creating a business empire with total assets exceeding 60 billion yuan across various sectors including real estate, cultural tourism, and infrastructure [5][6]. Group 2: Financial Crisis Details - The Xiangyuan System's financial products were reported to have overdue payment issues in early December, with Yu Faxiang bearing joint guarantee responsibilities, exposing his liquidity risks [6][8]. - As of December 16, Yu Faxiang and his associated entities held 612 million shares in Xiangyuan Cultural Tourism, accounting for 58.08% of the company's total equity, with all shares being judicially frozen due to debt risks [7][8]. - The total assets of Xiangyuan Holdings are reported to be 60 billion yuan, with liabilities exceeding 40 billion yuan, exacerbated by a downturn in the real estate market and the cancellation of financing platform qualifications [8]. Group 3: Market Reaction - Following the news of Yu Faxiang's legal troubles, shares of Xiangyuan Cultural Tourism and Jiaojian Co. saw significant declines, with stock prices dropping by 28% and 4.64% respectively, while Ocean Park Haichang fell by 6.25% [5][6].