Shanghai police have launched a criminal investigation into Hywin Wealth Management for alleged involvement in illegal fundraising, according to a statement from authorities. Two suspects, identified by their surnames Han and Wang, are under investigation as authorities seek to recover losses and protect investors. Hywin Wealth has faced scrutiny over delayed payments on wealth management products (WMP) it distributed. Once a leading distributor of real estate WMPs in China, the firm’s troubles have hit shares of US-listed Hywin Holdings, which rebranded as Santech Holdings earlier this year after severing ties with the wealth unit. In 2021, VP Bank of Liechtenstein acquired a 3.4% stake in Hywin Holdings, calling it a strategic partnership.