Top 500 Gold Firm Jinyafu Faces Delayed Payments on Wealth Products, Lawyers Allege Illegal Fundraising

Investors linked to wealth management products associated with Shenzhen Jinyafu Holding Group Co., Ltd. (Jinyafu), a Chinese top 500 gold enterprise, have reported delayed repayments, prompting government intervention and legal scrutiny over potential illegal fundraising.

As year-end approaches, many investors were caught off guard by payment delays tied to Jinyafu’s gold-backed investment schemes. On December 17, investors from multiple provinces disclosed purchasing gold from Jinyafu and entrusting it to Shenzhen Boyao Chuangjin Guarantee Investment Co., Ltd. (Boyao) for fixed annual returns of around 8%.

Since November 2025, delayed redemptions have raised concerns about Boyao’s close ties to Jinyafu. Social media discussions about Jinyafu’s financial health have intensified, with employees alleging unpaid salaries for months. A company representative admitted the situation is "not optimistic" but stated efforts are underway with government coordination.

Authorities in Shenzhen’s Yantian District confirmed full intervention, including asset audits and police oversight, advising affected investors to file reports. Meanwhile, Jinyafu’s headquarters in World Financial Center was found vacated, with signage removed and lease terminated per a December 12 property notice. Subsidiary offices were also relocating, though staff assured operations continue.

Investors like Wei Hongbo (pseudonym), who invested over ¥7 million, never received physical gold, only contracts for purchases and entrusted investments. Others, such as Liu Shuyi (pseudonym), face uncertainty over ¥300,000 due in January 2026. Investigations reveal Boyao’s shareholders, including Qiu Rongyuan and Xie Huizhen, have ties to Jinyafu through shared directorships in affiliated firms.

Jinyafu proposed solutions like equity swaps or extensions, but skepticism remains. Liu criticized converting debt into shares of an opaque affiliate. Meanwhile, Chairman Huang Shikun’s recent sale of an 8.09% stake in HK-listed Tokyo Central Auction (renamed Shangshan Gold) added to market volatility, with shares swinging between HK$1.12 and HK$3.51 on December 2.

Legal experts, citing Shenzhen’s November 24 warning against fake gold investment schemes, allege Jinyafu’s model—using fabricated gold transactions to promise fixed returns—meets criteria for illegal deposit-taking. Lawyer Liao Huayong urged victims to report to authorities promptly.