Core Viewpoint - The article discusses the downfall of Xiong Xiong, the chairman of Shanyuhai Group, who was previously celebrated for his motivational speeches but is now under investigation for illegal fundraising activities, highlighting the risks associated with high-return investment promises [1][2][4]. Group 1: Company Background - Shanyuhai Group, founded by Xiong Xiong, is a wellness and tourism enterprise focusing on high-end health services, with operations in real estate, e-commerce, overseas finance, and mining [10]. - The company has developed over 70 wellness bases domestically and internationally, offering vacation services and charging membership fees [10]. Group 2: Investment Products and Promises - Shanyuhai's main projects include residential properties in Zhoushan, promising annual rental returns of approximately 8% and additional profit-sharing options [13]. - The company also operates a financing leasing platform, providing rental services for electronic products with returns of 9.9%-12%, but investors have reported difficulties in withdrawing funds since March [15]. Group 3: Legal Issues and Investigations - The company is currently under criminal investigation for illegal fundraising, with law enforcement taking action against its branches in Hangzhou and Shanghai [4]. - The investigation was triggered by issues related to its internet finance projects rather than its real estate offerings [13]. Group 4: Market Context and Risks - The article notes a trend of similar investment firms facing legal troubles due to unsustainable high-return promises, leading to significant financial losses for investors [18]. - The case of Shanyuhai Group reflects broader concerns in the investment landscape, where companies often lack solid underlying assets and may operate as Ponzi schemes [18].

Core Viewpoint - Shanghai Shanyuhai Investment Group is under investigation by police in multiple locations for suspected illegal public deposit absorption, raising concerns about its business practices and financial stability [1][2][6]. Group 1: Company Overview - Shanyuhai Group, founded in 2009, initially focused on vacation farming and has since expanded into various sectors including real estate, overseas finance, and mining [7][8]. - The company targets high-net-worth elderly individuals, offering a range of services from tourism to health and wellness, and operates over 70 wellness bases both domestically and internationally [7][8]. Group 2: Legal Issues - The company is being investigated for its subsidiary, Maizi Leasing, which has been accused of illegal public deposit absorption, with claims of high returns attracting investors [2][5][6]. - Police in Hangzhou and Shanghai have taken criminal coercive measures against relevant personnel of Shanyuhai Group, indicating serious legal implications for the company [1][6]. Group 3: Financial Practices - Maizi Leasing offers rental returns of 9.9% to 12%, which are significantly higher than typical market rates, raising red flags regarding the legality of its operations [5][6]. - Investors have reported difficulties in withdrawing funds from the Maizi Leasing platform, suggesting potential liquidity issues and mismanagement of investor funds [5][6]. Group 4: Future Prospects - Despite current challenges, Shanyuhai Group is seeking to expand its business through IPO plans for its subsidiary, aiming for a listing on NASDAQ by December 2024 [8]. - The company is also required to clarify its business practices and compliance with regulations as part of the IPO process, particularly concerning any illegal activities [8].